Tag: asset portfolio

A difficult period for the performance of some thematic funds has given fuel to the naysayers’ arguments. But we believe thematic investing with an active approach is a powerful tool for investors now and in the years to come. Thematic investing has taken off in recent years. Global thematic assets under management stood at $400 billion as of 1 July 2023, up 11% from the end of last year (according to data from Goldman Sachs).

Representing 75-80% of a portfolio, the core public equity and debt investments can drive the largest impact on positioning the whole portfolio on a path to meet whole portfolio climate objectives. Decarbonisation on a scale sufficient to reach global emissions-reduction targets will transform each sector of the global economy.

Investment strategies that are built on specific ethical factors are not new. The principles underpinning environmental, social, and governance (ESG) investment predate the 1960s. Early in the development of the ESG investment practice, ESG strategies were often performative and designed to appease customers or influence public perception.