Sustainable Investments are Booming

The trend is obvious. Sustainable investments are more attractive than ever. As an example, Credit Suisse Asset Management launched the Credit Suisse (Lux) Environmental Impact Equity Fund in June this year. Investors thereby support concepts such as recycling management, which reduces and eliminates disposable products and waste by recycling resources and regenerating natural systems.

Deka is also further expanding sustainable funds based on the impact investing approach. The Vanguard ESG Emerging Markets All Cap Equity Index Fund acts as the central equity building block for ESG-compatible portfolios, providing broad and diversified exposure to emerging markets. Currently, the world’s largest green bond ETF is Lyxor’s Green Bond (DR) UCITS ETF, launched in February 2017, which has assets under management in excess of EUR 300 million.

La Financière de l’Echiquier (LFDE) is publishing a second environmental impact report of the Impact Fund Echiquier Positive Impact Europe, launched in 2017, to calculate what impact investing can achieve. The aim is to strengthen the commitment to impact investing in order to consolidate a more robust and sustainable ecosystem, says fund manager Sonia Fasolo. Asset manager Candriam is even cooperating with the London School of Economics for three years.

The Corona crisis is causing companies to rethink, as ESG-oriented companies have shown themselves to be more resilient during the crisis. ESG funds tend to overweight sectors that have weathered the acute crisis better in the first quarter. These include healthcare and technology. Loyalty to ESG investments is also observed and it is expected that more investors will jump on the sustainability bandwagon.

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