Over the past few years, global markets have faced considerable challenges. How has this impacted the fund, and what are the key factors that will drive sustainability-focused investments in the future? To explore these questions, we spoke with Philip Ripman, Portfolio Manager of Storebrand Global Solutions, to gain a deeper understanding of the fund's mission, investment strategy, and the evolving landscape of sustainable investing.
“The need for sustainable solutions is greater than ever”
It’s no secret that the past few years have been challenging for global markets and ESG-themed funds in particular. Despite this, Ripman is optimistic about the continued demand for sustainability-driven investments.
"It has been a challenging couple of years, but we still see a strong need for sustainable solutions," says Ripman. "The world is grappling with significant issues, from climate change to resource scarcity, and companies that can offer solutions to these are well-positioned to outperform in the long-term."
Ripman believes that as governments tighten environmental regulations and consumers increasingly demand green products and services, sustainability-driven companies will become even more crucial to the global economy. Storebrand Global Solutions aims to capitalize on these trends by investing in the companies leading and shaping them.
A focus on solutions for global challenges
Storebrand Global Solutions focuses on investing in companies that contribute to solving critical environmental and societal challenges. The fund is closely aligned with the United Nations Sustainable Development Goals (SDGs), particularly in areas like renewable energy, water and sanitation, and also has significant investments in companies that provide solutions to social issues such as access to finance and health, as well as environmental issues. This makes the fund an attractive option for investors who want to align their portfolios with positive, long-term global trends.
"Our investment strategy is rooted in the belief that companies addressing these key challenges will deliver strong financial performance over time," Ripman explains.
Thematic investing for long-term growth
One of the core features of Storebrand Global Solutions is its thematic investment approach. The fund focuses on global themes like energy transition and water scarcity that are not only aligned with the SDGs, but also represent high-growth areas driven by global demand for sustainable solutions.
"By focusing on themes like clean energy, water technology, and resource efficiency, we ensure that our investments are directly contributing to a sustainable global economy," says Ripman. "We’re not tied to old economic sectors—we’re looking at where the world is heading and invest in the future."
Changing tide
So how does Storebrand Global Solutions perform in comparison to traditional equity funds? According to Ripman, the fund has delivered competitive returns over the medium to long-term, often outperforming global equity benchmarks. This is largely due to its focus on companies that are leaders in innovation, particularly in clean technology and sustainable infrastructure.
"Sectors like renewable energy, energy storage, and waste management have faced challenges over the past year or so due to higher inflation and interest rates as well as poor political support, but we believe these will change and to some extent already have," Ripman says.
Poised for growth
In many ways sustainable investing is about allocating capital to products and services that we need more of and, therefore, where markets are poised to grow. It's never a straight line, but most people agree that we need more clean energy, for example, or greater access to financial services and health care, Ripman concludes, adding:
"There may have been a back lash in this space, but as the world confronts climate change and other pressing issues, we expect demand for sustainable products and services to accelerate."
Further information about sustainability-related aspects of the fund, including the sustainability disclosure summary in English language, can be found here.
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