Global markets remain volatile, driven by inflation, geopolitical tensions, and changing rate expectations. Despite this, sustainable assets have shown resilience, particularly in sectors tied to long-term structural change. Our funds continue to benefit from exposure to companies driving innovation in clean energy, AI infrastructure, and health & well-being.
Water resilience: a rising engagement theme
As we enter the final quarter of 2025, water resilience is emerging as a defining theme in active engagement. As floods, droughts, and pollution events increase, companies delivering water security and wastewater solutions are becoming essential to both climate adaptation and portfolio diversification. In line with this, we have been preparing for engagement sessions across our water-related holdings, including discussions with Brazilian sanitation company SABESP and American water technology Watts Water.
A measured approach
Looking ahead, we continue to take a measured approach and are debating whether to increase the equity overweight, particularly considering strong performance across global markets. While sentiment is improving, macro remains mixed, and we continue to monitor the impact of additional tariffs on India and its implications for global trade and inflation. Central banks’ guidance remains a key driver of asset correlations. Inflationary pressures can disrupt the traditional diversification benefits of holding equities and bonds, underpinning the importance of portfolio construction.
We welcome your feedback and questions. If you’d like to know more about our strategy, investment process, or how we assess sustainable companies, please get in touch.
Approver: Quilter Cheviot Limited, 7 October 2025
Author
Claudia Quiroz
Head of Sustainable InvestmentI lead the sustainable investment team at Quilter Cheviot, dedicated to serve clients who would like to invest in companies offering solutions to the economic and environmental problems of urbanisation, climate change and resource scarcity.
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Sustainable Opportunities Funds
The Sustainable Opportunities Funds invests in companies that make a positive contribution to the world, with a strong underpinning of ethical values.