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Oceans are changing.
How are investors responding?
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Investors are decarbonizing their portfolios.
Low-carbon funds invest in companies with low overall carbon risk and/or carbon footprint relative to a benchmark index. These strategies typically offer broad market exposure across all sectors and can, within an asset allocation, substitute for a lot of core equity exposure. While low-carbon funds largely deliver on their promises, they shouldn’t be viewed as holistic investments in the transition to a low-carbon economy. For that, investors must choose among other types of climate-aware funds in the innovation space.
As of December 2020, there were 400 funds globally that had climate change as a key theme, with collective assets under management of USD 177 billion. The universe of low-carbon funds increased from USD 6.13 billion to USD 45.64 billion in five years.
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How Can You Invest in Climate Funds?
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Global Growth of Low Carbon Funds
Global Growth of Low Carbon Funds
($ Billion USD)
Source: Morningstar Research, Morningstar Direct. Data as of September 30, 2021.
How Can You Invest in Climate Funds?
Read More
Low-carbon funds invest in companies with low overall carbon risk and/or carbon footprint relative to a benchmark index. These strategies typically offer broad market exposure across all sectors and can, within an asset allocation, substitute for a lot of core equity exposure. While low-carbon funds largely deliver on their promises, they shouldn’t be viewed as holistic investments in the transition to a low-carbon economy. For that, investors must choose among other types of climate-aware funds in the innovation space.
As of December 2020, there were 400 funds globally that had climate change as a key theme, with collective assets under management of USD 177 billion. The universe of low-carbon funds increased from USD 6.13 billion to USD 45.64 billion in five years.
Investors are decarbonizing
their portfolios.
How Can You Invest in Climate Funds?
Read More
Low-carbon funds invest in companies with low overall carbon risk and/or carbon footprint relative to a benchmark index. These strategies typically offer broad market exposure across all sectors and can, within an asset allocation, substitute for a lot of core equity exposure. While low-carbon funds largely deliver on their promises, they shouldn’t be viewed as holistic investments in the transition to a low-carbon economy. For that, investors must choose among other types of climate-aware funds in the innovation space.
As of December 2020, there were 400 funds globally that had climate change as a key theme, with collective assets under management of USD 177 billion. The universe of low-carbon funds increased from USD 6.13 billion to USD 45.64 billion in five years.
Investors are decarbonizing their portfolios.
Global Growth of
Low Carbon Funds
($ Billion USD)
Global Growth of Low Carbon Funds
($ Billion USD)
Source: Morningstar Research, Morningstar Direct. Data as of September 30, 2021.
Source: Morningstar Research, Morningstar Direct. Data as of September 30, 2021.