Looking to
the future

Research by Danish banking group Nordea showed that moving your pension fund into sustainable funds is 27 times more effective at reducing your carbon footprint than making lifestyle changes, such as eating less meat and travelling by train.

As private investors have sought to align their values with their portfolios, sustainable strategies have enjoyed a wave of new capital over the past decade. However, with the coronavirus pandemic triggering a stock market sell-off, did they stand by their convictions? Or was sustainable investing a luxury during the bull market?

The good news is while investors rushed to the exits, withdrawing more than $100 billion from active equity funds since the start of 2020, sustainable funds bucked the trend, instead enjoying record inflows. This pattern underlines the long-term appeal of sustainable investing and suggests investors realise it’s an approach that is not just the right thing to do, but also makes good financial sense.

Invest in a richer life,
however you define it.

This document has been prepared by Quintet Private Bank (Europe) S.A. The statements and views expressed in this document based upon information from sources believed to be reliable – are those of Quintet Private Bank (Europe) S.A. as of 20 June, 2020 and are subject to change. This information is defined as non-independent research because it has not been prepared in accordance with the legal requirements designed to promote the independence of investment research, including any prohibition on dealing ahead of the dissemination of this information. This document is of a general nature and does not constitute legal, accounting, tax or investment advice. This document does not provide any individual investment advice and an investment decision must not be based merely on the information and data contained in the document. All investors should keep in mind that past performance is no indication of future performance, and that the value of investments may go up or down. Changes in exchange rates may also cause the value of underlying investments to go up or down.

Copyright © Quintet Private Bank (Europe) S.A. 2020. All rights reserved. Privacy Statement


We’re committed to helping you align your values with your investments. As we all look forward to better days ahead, we believe there is a real opportunity to use sustainable strategies to encourage positive change as the world recovers from Covid-19. We’re already working on some new sustainable investment products, which we’ll be launching later this year.

INVESTING IS A POWERFUL WAY TO EXPRESS OUR PERSONAL VALUES

When constructing portfolios of sustainable investments that can deliver attractive returns throughout the economic cycle, we combine four approaches, which provide exposure to different risks and potential returns:

  • Leaders – companies that are already performing strongly on various environmental, social and governance (ESG) measures.

  • Improvers – those that are moving in the right direction and may outperform as they improve their ESG performance. Often this ESG improvement can be accelerated through constructive engagement with company management.

  • Thematic – trends that are underappreciated by the market, which should grow rapidly and command higher valuations as the world’s regulatory, investment and consumption patterns shift, such as low-carbon funds, gender-equality funds and water funds.

  • Dedicated assets – financial instruments designed with sustainability in mind. For instance, green bonds are a dedicated asset where the capital companies raise must be used for projects that will have a positive influence on the environment.

A sustainable toolbox

Looking to
the future

INVESTING IS A POWERFUL WAY TO EXPRESS OUR PERSONAL VALUES


Research by Danish banking group Nordea showed that moving your pension fund into sustainable funds is 27 times more effective at reducing your carbon footprint than making lifestyle changes, such as eating less meat and travelling by train.

As private investors have sought to align their values with their portfolios, sustainable strategies have enjoyed a wave of new capital over the past decade. However, with the coronavirus pandemic triggering a stock market sell-off, did they stand by their convictions? Or was sustainable investing a luxury during the bull market?

The good news is while investors rushed to the exits, withdrawing more than $100 billion from active equity funds since the start of 2020, sustainable funds bucked the trend, instead enjoying record inflows. This pattern underlines the long-term appeal of sustainable investing and suggests investors realise it’s an approach that is not just the right thing to do, but also makes good financial sense.

A sustainable toolbox

When constructing portfolios of sustainable investments that can deliver attractive returns throughout the economic cycle, we combine four approaches, which provide exposure to different risks and potential returns:

  • Leaders – companies that are already performing strongly on various environmental, social and governance (ESG) measures.

  • Improvers – those that are moving in the right direction and may outperform as they improve their ESG performance. Often this ESG improvement can be accelerated through constructive engagement with company management.

  • Thematic – trends that are underappreciated by the market, which should grow rapidly and command higher valuations as the world’s regulatory, investment and consumption patterns shift, such as low-carbon funds, gender-equality funds and water funds.

  • Dedicated assets – financial instruments designed with sustainability in mind. For instance, green bonds are a dedicated asset where the capital companies raise must be used for projects that will have a positive influence on the environment.

We’re committed to helping you align your values with your investments. As we all look forward to better days ahead, we believe there is a real opportunity to use sustainable strategies to encourage positive change as the world recovers from Covid-19. We’re already working on some new sustainable investment products, which we’ll be launching later this year.

Invest in a richer life,
however you define it.

This document has been prepared by Quintet Private Bank (Europe) S.A. The statements and views expressed in this document based upon information from sources believed to be reliable – are those of Quintet Private Bank (Europe) S.A. as of 20 June, 2020 and are subject to change. This information is defined as non-independent research because it has not been prepared in accordance with the legal requirements designed to promote the independence of investment research, including any prohibition on dealing ahead of the dissemination of this information. This document is of a general nature and does not constitute legal, accounting, tax or investment advice. This document does not provide any individual investment advice and an investment decision must not be based merely on the information and data contained in the document. All investors should keep in mind that past performance is no indication of future performance, and that the value of investments may go up or down. Changes in exchange rates may also cause the value of underlying investments to go up or down.

Copyright © Quintet Private Bank (Europe) S.A. 2020. All rights reserved. Privacy Statement


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For further information, please visit: www.quintet.com

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Seeing the world differently

Counterpoint July 2020 is our first digital monthly edition of Counterpoint. Each month we will add a new edition to this library to keep you up to date on our macroeconomic and market views.
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Seeing the world differently

Counterpoint July 2020 is our first digital monthly edition of Counterpoint. Each month we will add a new edition to this library to keep you up to date on our macroeconomic and market views.

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