ESG & Investing
Nature Funds Soar While Climate Investments Struggle to Recover
- Biodiversity-linked funds have gained 11% on average this year
- Evolving regulations, national strategies drive sentiment
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Funds tracking companies with purportedly strong biodiversity credentials are outpacing other climate-related investments this year, adding to expectations that such products are poised for major inflows.
Biodiversity-labeled funds now top $3.9 billion in total assets, up roughly 45% over the past 12 months, according to data from Morningstar Direct. Those funds averaged returns of about 11% this year, Bloomberg data show. That compares with declines for benchmarks related to renewable energy, carbon and electric vehicles, with the latter plunging 21%.