When writing at around this time last year we were amid interest rate rises with no end in sight. Now, it is almost a year after interest rate rises were put on pause and we are starting to see modest rate cuts as central banks continue to have an eye on services inflation and wage data.
It truly feels like a turning point for sustainable investment, a strategy highly sensitive to interest rate rises. This is illustrated by the fact that most sustainable funds are back in positive territory since Russia invaded Ukraine. It is encouraging to realise that what once was a headwind for our Climate Assets strategy, is now set to be a welcome tailwind. Let's consider three factors that have affected recent performance: Energy, Interest Rates and....
