Over the past decade, ESG has moved from the periphery to the mainstream, with investors launching funds and strategies branded a ‘Green’, ‘Sustainable’ or ‘ESG-focused’. Investor enthusiasm peaked in 2021 and 2022, driving valuations of companies tied to the green transition to record highs. Luc Plouvier, senior portfolio manager for our Global Dividend strategy explains that the tide has turned.
Recent quarters have seen a marked shift from inflows to outflows in ESG-related investment funds, which is a clear signal that popularity is waning. Some of the former ESG-darlings have struggled to meet lofty expectations, facing project delays, capital shortfalls, and disappointing returns. The ESG pendulum has swung from exuberance to growing skepticism. In this edition of ‘Market Musings’, we would like to highlight our approach towards ESG. We expect that this approach will continue to add value to the portfolio.
General risks to take into account when investing in Dividend equity strategies
Please note that all investments are subject to market fluctuations. Investing in a Dividend Equity strategy may be subject to country risk and equity market risks, which could negatively affect the performance. Under unusual market conditions the specific risks can increase significantly. Potential Investors should be aware that changes in the actual and perceived fundamentals of a company may result in changes for the market value of the shares of such company
Disclaimer
Van Lanschot Kempen Investment Management NV (VLK Investment Management) is licensed as a manager of various UCITS and AIFs and authorised to provide investment services and as such is subject to supervision by the Netherlands Authority for the Financial Markets. This document is for information purposes only and provides insufficient information for an investment decision. This document does not contain investment advice, no investment recommendation, no research, or an invitation to buy or sell any financial instruments, and should not be interpreted as such. The opinions expressed in this document are our opinions and views as of such date only. These may be subject to change at any given time, without prior notice. Dividend Equities: general risks to take into account when investing in Dividend equity strategies. Please note that all investments are subject to market fluctuations. Investing in a Dividend Equity strategy may be subject to country risk and equity market risks, which could negatively affect the performance. Under unusual market conditions the specific risks can increase significantly. Potential Investors should be aware that changes in the actual and perceived fundamentals of a company may result in changes for the market value of the shares of such company. The value of your investment may fluctuate, past performance is no guarantee for the future. Do not take unnecessary risks. Before you invest, it is important that you are aware of and are informed about the characteristics and risks of investing. This information can be found in the available documents of the strategy and/or in the agreements that are part of the service you choose or have chosen.
