In this edition of NordSIP’s Article 9 Fund Review, we dive into the key trends shaping sustainable investments during the first half of 2024.
As the Article 9 fund universe continues to evolve in response to regulatory developments and shifting manager priorities, it is clear that sustainable investing is a long-term endeavor. Yet, in an industry where short-term market dynamics dominate, it remains crucial to regularly check in with asset managers to understand how their strategies and focuses are adapting.
This review covers 53 global actively-managed Article 9 funds, encompassing 14 Nordic-based equity funds, 11 fixed-income funds, and 28 international funds, split between public and private asset strategies1. The report highlights the ongoing influence of a “higher for longer” interest rate environment, which provided support to long-duration bond funds but placed significant pressure on renewable energy stocks due to their capital-intensive nature. Nevertheless, despite recent headwinds, there is growing optimism about the future of renewables.
Artificial intelligence (AI) and healthcare remained the dominant themes driving market performance during the period, with bullish sentiment in these sectors boosting returns for many funds but also benchmarks. Fund managers across the board expressed caution regarding future macroeconomic developments, with most public asset funds maintaining a neutral outlook. However, managers of private assets are notably more optimistic, particularly in sectors like agriculture, financial inclusion, and emerging markets, where they see strong opportunities for growth.
As we move forward, it will be fascinating to observe how Article 9 funds continue to balance long-term sustainability goals with the immediate challenges of today’s market. This edition provides valuable insights for investors committed to navigating the evolving world of sustainable finance.
1. international managers included are NordSIP partners↩
