Sustainable Opportunities Funds: Geopolitics rarely have a lasting effect on markets

Our Chief Investment Officer and her team have recently shared their views on the market implications of the conflict and why we believe it remains important to stay invested. Their analysis supports the long-held view that geopolitics rarely have a long-lasting effect on market performance. That said, the wider impact on growth will differ across regions, depending on each country’s energy mix and its reliance on imported energy. Europe and Asia remain the most exposed.

The conflict has caused severe disruption to global energy markets and so far, there is no end in sight. The Strait of Hormuz, through which roughly 20% of global liquefied natural gas and oil exports pass, remains closed. The International Energy Agency agreed to release a record 400 million barrels of strategic oil reserves in an effort to stabilise supply and abate the oil price spike. These developments have pushed energy security to the forefront, highlighting the vulnerability of the fossil fuel supply chains and the urgency of transitioning to renewable local sources.

Year to date to the end of February, both of our Sustainable Opportunities Funds have delivered strong results. The Balanced Fund returned +4.43%, while the Growth Fund delivered +3.96%. Looking ahead, the outlook for utilities, battery storage, grid infrastructure, and energy saving technologies remains constructive throughout 2026. These areas are well aligned with our Clean Energy and Resource Efficiency themes and continue to offer attractive long-term opportunities.