Investing in sustainable industries
10 January 2020 | Minutes to read: 2

Investing in sustainable industries

By Adrian Frinsdorf

With climate change dominating the global headlines, it’s not surprising that more investors are turning their attention to sustainable industries.

And for good reason.

Reputable fund managers in this space have rewarded Australian investors seeking exposure to international companies with a focus on environmental sustainability and resource efficiency.

High quality, growth-oriented companies operating within these parameters have generated strong returns.

These companies can be found operating in a range of industries from clean energy, waste management, water, food and agriculture just to name a few.

How to gain exposure

Gaining direct exposure to these often overseas-based companies can be difficult for Australian investors so it’s likely to require a fund manager pathway.

Sustainable investing has becoming a key theme in recent times and one embraced by our Wealth Advisory team at William Buck as we see positive outcomes for our clients as part of a diversified portfolio.

This is a growing investment segment with a number of fund managers emerging.

For our clients, we are interested in those fund managers with a strong track record of performance and an experienced leadership team.

One such fund manager is Nanuk Asset Management. This Australian firm founded in 2009 operates the New World Fund – a diversified actively managed global equity fund.

The fund’s investment approach is borne out of a philosophy that environmental and resource constraints such as climate change will necessitate significant changes for the global economy in coming decades.

More efficient and sustainable technologies are emerging, driven by their improving economic viability in the environmental context the world finds itself in now and into the future.

This trend is opening up attractive long-term investment opportunities in selected companies across a range of areas including renewable energy generation and storage, sustainable materials and textiles, plant-based protein, waste management technology and electric vehicles.

Alternative asset classes such as sustainability investments can be a valuable addition to a diverse portfolio and have the potential to reduce overall risk, providing a smoother return and larger return over time.

However it’s important investors first seek professional advice that takes into account their individual circumstances and objectives.

If you are interested in investing in sustainable industries please contact our Wealth Advisory team at William Buck 

Investing in sustainable industries

Adrian Frinsdorf

Adrian is the national leader of William Buck's Wealth Advisory Services division and Chair of the William Buck Wealth Advisory Investment Review Committee. Adrian has over 25 years' experience in the financial services industry with expertise in stockbroking, direct share advice, funds management, accountancy and delivery of tailored advice to high net worth clients across banking, investment advice and structured financial planning.

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