Best Ideas: ESG themes & Innovation
Marketing Communication
ESG themes & Innovation
ESG investing has received considerable attention from investors in recent years. A good way to embrace an integrated ESG approach, in our view, is using a forward-looking approach to select two types of companies, ESG winners and ESG improvers. The aim is to offer investors the chance to invest today in the potential ESG winners of tomorrow. Furthermore, we believe that other solutions focusing on food security, tackling climate change and socially-oriented strategies could provide opportunities in the increasingly crowded ESG space. Lastly, as Europe grapples with an energy crisis, we think progress on ESG investing is likely to continue as governments seek to reduce their reliance on carbon-intensive fuels.1
Valid for the full year | ⏰ Q1 2023 → Q4 2023
ESG Themes
ESG has the potential to transform the way we look at the world and the future of people’s wealth. When approaching sustainable thematic strategies over the long-term, investors’ should focus on disruptive, long-term objectives, while accepting period of underperformance due to short-term market volatility.
(C) Core (S) Satellite (BC) Becoming core
| Valid for the full year |
Amundi Funds ESG Improvers Range- US- Global- Europe- EM- Corporate |
(BC) |
The funds aim to capture the unexploited potential of companies at the beginning of their ESG journey, by selecting names that may have the potential to be ESG ‘winners’/leaders in the future and benefit from the rise in investors seeking out responsible assets. |
|
| Valid for the full year |
KBI Global Energy Transition Fund |
(C) |
The fund aims to capture the opportunities deriving from the growing demand for clean energy at global level by targeting three subsectors: renewable energy (wind, solar, geothermal, biomass), energy efficiency (efficient technologies) and utilities (supply and distribution). |
|
| Valid for the full year |
CPR Invest – Food for Generations |
(C) |
The fund aims to capture the growth potential behind the themes of increasing food and water consumption, investments in agriculture and water and emergence of new consumption trends. |
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| Valid for the full year |
KBI Global Sustainable Infrastructure Fund |
(C) |
The fund aims to deliver positive returns by investing in global listed sustainable infrastructure companies involved in the provision of water, clean energy and food transportation and storage. |
Discover fund |
| Valid for the full year |
CPR Invest – Circular Economy |
(C) |
The fund aims to outperform global equity markets over the long term by investing companies involved in the transition from a “take-make-waste” linear model to a circular economy2; its focus includes innovative companies that incorporate a circular approach at every stage of the product life cycle as well as companies able to benefit from the transition. |
Discover fund |
| Valid for the full year |
CPR Invest – Hydrogen |
(C) |
The fund aims to outperform global equity markets over a long term period by investing in global listed companies involved in the entire hydrogen value chain, upstream to downstream; it includes green power generation and hydrogen tech components to production, storage and distribution, and lastly hydrogen users. |
Discover fund |
| Valid for the full year |
KBI Water Fund |
(C) |
The fund seeks to tap into the potential of the water sector and to provide solutions to global water scarcity, by investing in solid, sustainable companies across the world; Its proprietary investment universe includes water infrastructure, water technology and water utilities. |
Discover fund |
| Valid for the full year |
CPR Invest – Climate Action |
(C) |
The fund seeks to outperform global equity markets over a long-term by investing in companies committed to limiting the impact of climate change in line with the United Nations’ 13th Sustainable Development Goal, “Climate Action”3. |
Discover fund |
Innovation
Among the main innovations introduced by ESG investing, we believe that Net Zero could provide opportunities for investors seeking to generate a dual impact on their investments, that is providing financial returns as well as contributing to the wellbeing of the planet. Indeed, we believe in the possibility of unlocking value by investing not only in companies well advanced in their self-decarbonisation path, but also in businesses in need of improvement but with the potential of making the change where this potential is not well-appreciated by the markets.
Valid for the full year | ⏰ Q1 2023 → Q4 2023
Companies across the world are committing to net zero targets and developing climate transition plans to mitigate their CO2 emissions. As the end goal is so far in the future, in some cases 2030 or even 2050, investors’ should focus on the long-term opportunity, being aware that market noise could eventually make the road bumpy over shorter timeframes.
Amundi Net Zero Range (BC)
The funds aim to deliver superior risk-adjusted returns versus their benchmarks, while also maintaining pre-determined self-decarbonisation targets for each year; these diversified* portfolios include companies which are already advanced in their CO2 migration but also “improvers”, companies that have the potential, through engagement and corrective actions, to enhance their support to climate mitigation.
(C) Core (S) Satellite (BC) Becoming core
| Valid for the full year |
Amundi Funds Net Zero Ambition- Global Corporate Bond- Global Equity- Pioneer US Corporate Bond- Emerging Markets Equity |
(BC) |
Discover our Best Idea Themes
Bonds are back
After years of low yields and a challenging 2022, is finally the time to refocus on bonds.
Equity seeks entry point opportunities
Equity, in our view, will offer attractive entry points during the year, especially in selected regions.
The 60-40 reloaded with an inflation tilt and focus on income
A 60-40 portfolio, that considers inflation and a stable income stream delivery, can represent an advantageous option.
*Diversification does not guarantee a profit or protect against a loss.
Sources:
1 Source: Amundi, Global Investment Views, January 2023
2 Circular economy aims to tackle global challenges like climate change, biodiversity, loss, waste, and pollution
3 Take urgent action to combat climate change and its impacts”, https://sdgs.un.org/goals
Marketing Communication
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Date of publication: 07 February 2023
Doc Id: 2681175
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