by Julia Gro, unrest on Sunday
DThe sustained rise in energy stocks is unsettling some investors who have opted for sustainable investments. Greenwashing claims, such as those recently made by DWS, fuel scepticism. And now the EU Parliament has also agreed to classify investments in natural gas and nuclear power as sustainable under certain conditions – a view not shared by many investors.
In such phases of uncertainty, it pays to focus on the long-term development. The fact is: Companies that are sustainable and contribute to environmental and climate protection have rarely had a better starting position for their business than they currently have. The orientation is politically desired and will be generously promoted in certain segments in the coming years. The investment environment also attaches great importance to such companies and their commitment is rewarded.
When it comes to performance, good sustainability funds don’t need to hide, whether they focus on the ecology and environmental protection sector or apply strict sustainability standards to broadly diversified equity investments. While this does not protect them from losses in the moment, it shows that investors can do well over the long term even with the limited investment universe.
Orientation when choosing a fund
When looking for funds with a good risk-return ratio and a portfolio that is sustainable, especially with regard to environmental and climate issues, Finanz Verlag’s fund ratings offer guidance. The FondsNoten, which we calculate monthly together with the analysis company FondsConsult, looks at returns and value fluctuations on a portfolio over four years, always in comparison with funds from the same investment category. There are also qualitative criteria such as continuity of management.
The environmental assessment, on the other hand, assesses the concrete investments in a share fund’s portfolio according to ten environmental, social and climate protection criteria. There are more points for companies with an environmental orientation or activities within renewable energy, as well as for low CO2– Emissions. The rating decreases when investing in companies that do business with fossil fuels, nuclear power or weapons. If the fund contains shares in companies that are on the Norwegian sovereign wealth fund’s exclusion list due to coal mining or coal-fired electricity production, the portfolio automatically receives the worst eco-rating “E”. Mountain-View Data recalculates the eco-rating of Finanz Verlag every quarter.
repeat at the top
From the current evaluation of Eco-Ratings, we present the frontrunners from the categories global equity funds and global equity funds ecology in the table. Portfolios that have been on the market for less than 12 months or have a volume of less than DKK 20 million. EUR, was not taken into account.
All the top funds mentioned are “repeaters”, i.e. they have already achieved the grade “A” in previous eco-rating evaluations. This speaks for consistency in the investment strategy. Erste Stock Environment and Green Effects NAI-Werte Fonds in particular have attracted attention for a long time thanks to their good performance and consistent “A” ratings.
Of First floor environment the Austrian Erste Asset Management is a so-called feeder fund for the Erste WWF Stock Environment, which German investors can no longer invest directly in. But it doesn’t matter, the fees are identical at 1.80 percent and so is the portfolio in the end. Austrians rely heavily on renewable energy and energy efficiency (in total almost 60 percent of the portfolio). The two American solar companies Sunrun and Sunnova are the most heavily weighted. Investors focusing on renewable energy must be able to withstand large fluctuations. Since the beginning of the year, Aktiemiljoet has fallen by 18 percent.
Behind GreenEffects NAI Value Fund There is an unusual construction here: you can only bet on the 30 stocks included in Securvita’s natural stock index. They are industrial pioneers who “contribute to ecologically and socially sustainable solutions to key human problems”. Extensive exclusion criteria apply; In 2021, for example, four companies were exchanged. Health insurer Molina, medical technology group Smith & Nephew and infrastructure specialist Acciona are currently the most heavily weighted. Fees are low at 1.12 percent and volatility is below average.
that Head first-Portfolios score in Eco-Rating with the exclusion of arms manufacturing as well as coal and nuclear energy. The strategy, which focuses on structurally growing topics, also helps with the evaluation. example digitization: Companies here often have a low CO2emissions and make positive contributions to environmental protection, for example by making processes more efficient. Unlike Unconstrained, Global Equities works with hedging strategies.
With Faro’s listed fixed assets A real estate and infrastructure equity fund (see also page 20), which was only launched in 2020, also entered the top spot. Also still young Heptagon future trends is dependent on long-term trending topics.
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