The European Union (EU) has spearheaded the movement to global environment from some 40 years ago. And what has been done through policies such as the 7th Action Programme for the Environment, the Climate and Energy Package for 2030the Europe 2020 Strategy and the Research and Innovation programme Horizon 2020.
These and other policies share similar goals, looking for different ways to balance considerations of social, economic and environmental. Implement and strengthen these programs in a smart way can help to expand the frontiers of science and technology in Europe, create jobs and improve competitiveness, with joint approaches to solve shared problems that make them profitable from the economic point of view.
What is clear, however, is that the transformation of key systems such as transport, energy, housing and feeding systems are key to achieving this long-term transformation. We will have to find ways to make them fundamentally sustainable, descarbonizándolos, making it much more efficient, and more compatible with the ecosystems. It will also be necessary to redesign the systems that have addressed these provisioning systems, and have created blockages unsustainable: finance, fiscal, health, legal, and education.
Opportunities in the change
This transforming process opens up a wide range of opportunities for investorsthrough companies whose activity is promoting and facilitating the way to an environment cleaner and more sustainable. Indirect investment through a mutual fund is a most appropriate way for the individual investor, as it offers greater diversification and, therefore, a lower risk than directly investing in companies listed on the stock exchange.
The sectorial category VDOS of Ecology encompasses funds that, according to your definition, invest their portfolio in renewable energies, in protection of the environment and climate change. Its average return in the year is of 7.26%.
We have selected the funds in this category, with a rating of five and four-star VDOS, are among the more cost-effective since January this. Of this group of funds, the more cost-effective in the year is Multipartner Sicav – RobecoSAM Smart Energy with a revaluation of 8,32% in class N in euro.
In the last annual period your return is 16,91%, with a data of the volatility of 23,25%. The fund, with a MSCI Rating ASG of A, invests in stocks of companies that provide solutions for sustainable and competitive to the growing demand for a reliable supply of energy, clean and affordable.
His major positions include shares of II-VI INC (4,96%) ON Semiconductor Corp (4,88%) Xilinx Inc (4,65%) Marvell Technology Group (4,06%) and Maxim Integrated Products Inc (3,79%). Applies to its partakers a fixed commission of 0.75 percent and deposit of 0.30 percent.
Denominated in dollars, the class distribution of Legg Mason ClearBridge US Equity Sustainability Leaders win a 4,60% in 2020. A year is revalued 11.33%, with a controlled volatility of 19.3%, which positions it among the best in its category for such a concept, in quintile five.
The fund follows an investment policy ESG, investing in a concentrated portfolio of companies, mainly of United States. Taken as a management reference index Russell 3000, including senior positions stock Microsoft Corp (6.97 per cent), Apple Inc (6,77) Costco Wholesale Corp (2,85%) Alphabet Inc (2,81%) and Danaher Corp (2,56%). The minimum investment required to sign up to this fund is $ 1,000 (about 844 euros) to apply to its participants a fixed fee of 1.20% and a deposit of 0.15%.
Rated four stars VDOS and MSCI Rating ASG AA, class C accumulation eur Schroder ISF Global Climate Change Equity get a return on the 14,38% in the year and 20,25% in the last year, with a fact quite controlled volatility 21,26%, which positions it in the second best group of his category for such a concept, in quintile four.
Invests in global companies benefit from the efforts to accommodate or limit the impact of global climate change. The manager believes that companies that recognize the threats and accept the challenges at an early stage, or that are part of the solution to the problems related to climate change, in the last instance, will benefit from a structural growth in the long term is undervalued by the market.
These companies are expected to have a behavior higher once the market recognizes this dynamic of greater strength in the growth of their profits.
The largest positions in his portfolio are represented by shares of Amazon.com Inc (4,10%) Danaher Corp (3,60%) Vestas Wind Systems A/S (3,40%) Siemens Gamesa Renewable Energy SA (2,90%) and Alphabet Inc (2,90%). The subscription of the class C-accumulation eur this fund assumes a minimum contribution of 1,000 euros, weighing its participants bear a fixed commission of 0.75% and deposit of 0.30%.
Despite the environmental improvements of recent decades, the environmental challenges that Europe is facing today are considerable. The natural capital committee has ve gradient by socio-economic activities as the agriculture, fisheries, transport, industry, tourism, and urban expansion. And the pressures of the global on the environment have grown an unprecedented pace since the 1990s, driven above all by economic and population growth, and changes in consumption patterns.
At the same time, a greater understanding of the characteristics of the environmental challenges of Europe and their interdependence with the social and economic systems in a globalized world, have brought a growing recognition that the approaches to knowledge and governance are inadequate to cope with these challenges.
*** Paula Mercado is the director of analysis of VDOS.