Proof from a pro that green investing does not sacrifice returns

TL;DR

The Climate Assets Fund is a successful multi-asset fund that prioritizes ethical investing without sacrificing returns.

Transcript

hello today i'm joined by claudia cueros who is the full manager of the climate assets fund so the fund adopts a multi-asset approach could you run through what the current split is between shares bonds and alternatives and also run through the types of bonds and alternatives that you invest in of course so the fund is a multi-asset fund in order t... Read More

Key Insights

• 🏍️ The Climate Assets Fund follows a multi-asset approach to reduce volatility and navigate the economic cycle.
• 🧡 The fund invests in a diverse range of assets, including shares/equities, bonds, alternatives, and cash.
• ↩️ Ethical investing does not mean sacrificing returns, as the fund has consistently outperformed its sector benchmark.
• 🥘 The fund's investment themes include low carbon energy, food, health, resource efficiency, and water.

Questions & Answers

Q: What is the asset allocation of the Climate Assets Fund?

The fund is comprised of 70% shares/equities and 30% other asset classes like fixed interest, alternatives, and cash.

Q: What types of bonds does the Climate Assets Fund invest in?

The fund invests in government bonds (gilts and linkers) and corporate bonds, maintaining transparency and adhering to the ethical values of the fund.

Q: How has the Climate Assets Fund performed compared to its sector benchmark?

The fund has consistently ranked in the top quartile of its sector over three and five years, proving that ethical investing can deliver strong returns.

Q: Why did the fund's short-term performance slightly dip compared to the sector average?

The dip in performance can be attributed to market rotation, where sectors that the fund does not invest in, such as fossil fuels and high environmental damaging sectors, experienced a boost.

Q: What are the five investment themes of the Climate Assets Fund?

The fund focuses on low carbon energy, food, health, resource efficiency, and water. Example stocks include Active, Kubota, Thermo Fisher, and Waste Management.

Q: Has the pandemic significantly impacted the portfolio of the Climate Assets Fund?

While there have been some changes, the fund mainly saw opportunities in renewable energy, mobility, and healthcare companies that provided solutions to climate change and supported the healthcare system during the pandemic.

Summary & Key Takeaways

• The Climate Assets Fund is a multi-asset fund with a split of 70% shares and 30% other asset classes like bonds and alternatives.

• The fund invests in fixed interest assets such as gilts, linkers, and corporate bonds, while also considering climate-friendly alternatives like green and social infrastructure.

• Despite short-term fluctuations, the fund has consistently outperformed its sector benchmark and demonstrated that ethical investing can yield strong returns.