- The UK is set to see its hottest day on record.
- UK temperatures hit record highs of 38C yesterday, with 42C expected today.
- Scientists warn heatwaves to become norm as global warming takes hold.
- Economic growth likely to be impacted by extreme weather.
- Investors turn to renewable energy and impact funds amid crisis.
UK’s Rising Temperature
Emma Wall, Head of Investment Analysis and Research:
“The UK has been brought to a standstill by soaring temperatures, as offices close, trains are cancelled and emergency services are put under increasing pressure. The Met Office has warned that heatwaves will happen far more frequently than in the past, and climate change is to blame. The stock market reaction has been muted, but investors should take heed – extreme weather is bad news for economic growth.
Hedge Funds Beat The Market As Stocks Sink
Hedge funds have often been criticized for underperforming the market and charging high fees for doing so. However, during the first half of 2022, hedge funds proved their worth in one of the worst market environments for decades. The S&P 500 lost 20% in the first six months of 2022, the worst performance on record Read More
The impact of storms on the US economy is well-documented, and each hurricane season is estimated to cost the country around $1 billion. And while hurricane destruction is more physical than a heatwave, there are similar productivity implications for periods of extreme heat.
Investors Snap Up Sustainable Funds
Luckily, there are ways for governments, policymakers and regulators to mitigate the risks, and halt global warming, but it takes dedication and investment. Investment that retail investors have already begun to make. Over the last couple of years, Investment Association figures have shown responsible investment funds climb from being niche players to the most popular in terms of flows.
The top 20 monthly most sold funds with Hargreaves Lansdown clients – for many years awash with global and tech funds – now regularly feature ESG options. As temperatures have risen over the last six weeks, across the responsible investing universe of impact, ESG, ethical and sustainable funds, two of the most popular funds are those that invest in clean energy. These are providing essential investment to wean the world off fossil fuels and tackle the climate crisis.”
Top 10 Responsible Investment Funds
(Number of Buys, Alphabetical)
|Aegon Ethical Equity Fund|
|Baillie Gifford Positive Change|
|EdenTree Responsible and Sustainable Managed Inc|
|Fidelity Sustainable MoneyBuilder Income|
|Fundsmith Sustainable Equity|
|Guinness Sustainable Energy|
|Legal & General Future World ESG Developed Index|
|Stewart Inv Asia Pacific Leaders Sustainability|
|Stewart Inv Indian Subcontinent Sustainability|
|VT Gravis Clean Energy Income|
About Hargreaves Lansdown
Over 1.7 million clients trust us with £132.3 billion (as at 30 April 2022), making us the UK’s number one platform for private investors. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month.
Image and article originally from www.valuewalk.com. Read the original article here.