AGF Market Insight: The Most Important Chart in Sustainable Finance?

By: Martin Grosskopf and Andy Kochar • July 7, 2021

A great deal has been written in the last few years about the rise of sustainability in the financial sector – often either on sustainability itself (corporate or policy objectives) or on the opportunity and risks for financial markets (stock prices and fund flows). As we all know, the COVID-19 crisis accelerated this movement, with sustainability-linked products taking the lion’s share of new fund flows, and with many sustainability-linked themes significantly outperforming in 2020.

However, 2021 has brought some significant rotation away from companies with the most to benefit from capital inflows and the most to offer over the long term – for example, pure EV and battery companies, renewables, and so on. The question on many minds is whether this is the pause that refreshes or the initial signs of a longer-term shift in direction. The answer lies in how the concept of duration applies to the market – and “sustainable” assets, unfortunately, will not be immune from this cruel taskmaster.

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The commentaries contained herein are provided as a general source of information based on information available as of June 24, 2021 and should not be considered as investment advice or an offer or solicitations to buy and/or sell securities. Every effort has been made to ensure accuracy in these commentaries at the time of publication however, accuracy cannot be guaranteed. Market conditions may change and the Portfolio Manager accepts no responsibility for individual investment decisions arising from the use or reliance on the information contained herein. Investors are expected to obtain professional investment advice.

AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA)and AGF International Advisors Company Limited (AGFIA).

AGFA is a registered advisor in the U.S. AGFI is registered as a portfolio manager across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.

® The “AGF” logo is a registered trademark of AGF Management Limited and used under licence. Publication Date: July 7, 2021. RO: 1699339/1721278

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