Sustainable investing

Sporting chances: why sustainability will be key for companies in a post-pandemic world

As lockdowns ease, companies face stern tests on many fronts. We consider seven areas in which UK companies will need to be on their game.

23 Jun 2020

6 minutes

The fast view

  • Companies will need to perform well on all fronts in the tough post-pandemic environment.
  • Investors need to watch select environmental, social and governance factors closely – mistakes and bad practices could have serious consequences.
  • Companies are at very different stages of understanding how their products, services and operations impact society and the environment.
  • To build a resilient UK equity portfolio, we advocate a focus on quality businesses that are high-achievers on all three pillars of sustainability: internal, financial and impact.

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Specific risks: 
Geographic / Sector: Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean that the resulting value may decrease whilst portfolios more broadly invested might grow. Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income. Equity investment: The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. bankruptcy), the owners of their equity rank last in terms of any financial payment from that company. Concentrated portfolio: The portfolio invests in a relatively small number of individual holdings. This may mean wider fluctuations in value than more broadly invested portfolios.

All investments carry the risk of capital loss. The value of investments, and any income generated from them, can fall as well as rise and will be affected by changes in interest rates, currency fluctuations, general market conditions and other political, social and economic developments, as well as by specific matters relating to the assets in which the investment strategy invests. If any currency differs from the investor’s home currency, returns may increase or decrease as a result of currency fluctuations. Past performance is not a reliable indicator of future results.

Authored by

Matt Evans

Portfolio Manager, Ninety One UK Sustainable Equity

Important Information

This communication is provided for general information only should not be construed as advice.

All the information in is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessary reflect those of Ninety One.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon.

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