Hargreaves Lansdown's New Sustainable Funds | Trustnet

Hargreaves Lansdown's New Sustainable Funds | Trustnet

The person in charge of ESG analysis on the platform selects funds. These funds are for investors who want to support biodiversity with their portfolios.

Hargreaves Lansdown says it is crucial for investors to think about biodiversity loss. This can affect their portfolios. Investors should be aware.

On May 22, it's the International Day for Biodiversity. The platform wants to show the link between a healthy biodiversity and a strong economy.

The guy from Hargreaves Lansdown, Dominic Rowles, talked about biodiversity. It means everything alive in one place. This includes animals, plants, fungi, and even tiny things like bacteria.

The United Nations made the International Day for Biodiversity. It helps people know how important it is for life on Earth to keep going.

Nature is vital for our economy. It's not only about the environment. Half of the global GDP is linked to nature. Agriculture feeds 75% of the world's poor. We need to protect biodiversity or we will lose money and people's livelihoods.

The World Wildlife Fund studied the Living Planet Index. They found out that mammal, bird, amphibian, reptile and fish populations decreased by 69% since 1970. Rowles said that the decrease happened because of habitat loss, species overexploitation, invasive species, pollution, climate change, and disease.

Biodiversity challenges are getting worse, and this is risky for investors. Investors are starting to care more about biodiversity. This is also a chance for sustainable investment to become more important.

An analyst stated that biodiversity is a new frontier in sustainable investment. It is vital to think about how biodiversity loss affects the companies invested in. Checking the plans those companies have to avoid disastrous impacts is crucial.

If you invest in funds, Rowles recommends finding managers who care about biodiversity loss. There are two options available that meet this criteria.

The Ninety One UK Sustainable Equity fund invests in companies that are good for society and the environment. The fund has been managed by Matt Evans since December 2018. He has over 24 years of investing experience and has also managed funds at Colombia Threadneedle and Legal & General.

The fund's performance compared to the sector and index has been reviewed since its launch. The fund has shown better performance than both the sector and index. This means the fund's returns have been higher than other investments in the same sector and the broader index. Investing in this fund has been a successful option for investors looking for better returns.

The manager looks at natural capital as a big part of the analysis process. He likes to focus on carbon, water, and biodiversity. The manager checks how a company's actions affect these areas, both in a good and bad way. This can shape how the manager thinks about the company's future growth and earnings. Rowles shared this information.

He said Ninety One UK Sustainable Equity owns companies like Agronomics that help slow biodiversity loss. Agronomics uses cell cultures to make meat. This method needs less land, pesticides, and fertilizers compared to traditional farming.

The next fund is L&G Future World ESG Developed Index. It tracks Solactive L&G ESG Developed Markets Index. It has nearly 1,500 constituents from different sectors such as technology, healthcare, and financials in global developed markets. It is highly diversified.

The fund's performance compared to the sector since it started. We have looked at how the fund has done compared to the sector. We have been comparing the fund's performance with the sector since it began. The fund's performance versus the sector has been evaluated since launch.

The index puts more money into companies that do well on ESG stuff. This includes things like taking good care of biodiversity and not cutting down too many trees. They also look at how many women are on the company's board and how transparent they are about paying their top executives. The index doesn't give as much money to companies that do badly on these things, Rowles said.

Legal & General Investment Management supports biodiversity and has a policy that encourages companies to deal with biodiversity issues.

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