Green and futureproof investments

[TiddleTaddleTat]

Hi
Apologies if this has been covered before, I've not found anything after a quick search.

I have a small amount (c£4K) in S&S ISA, LISA and SIPP with Hargreaves lansdown almost entirely in index funds on an accumulation basis. I put in circa £100-200 a month based on income fluctuations and expenses. It's the best I can do for now.

Looking ahead I want to invest in green energy, tech, and other futureproof investments. Reading about fossil fuel based market crashes got me thinking - what do you consider to be sustainable long term investments?

there are various green funds & ETFs you can invest in - look at Vanguard and Jupiter Ecology. Nutmeg also have a green fund. I think they all avoid mining & fossil fuels, so should be a better long-term bet than a trad fund.

Thanks , Jupiter ecology looks like a good bet. Very high at the moment though. Is mainly large and mid cap companies, do you know of any small/emerging market sustainable indexes I can check out too?

I've looked at the Ns&I green gilt over 3 yrs but the rate is v disappointing at 0.87% , I probably should start including some bonds too. I'm about 25-30 yrs from retirement.

Impax Asset management are a specialist that invest in green technologies. Bare in mind this is could be a high risk approach (if you invest in them rather than with them).

Thanks, impax are interesting to consider. As you say though as a share rather than fund it's higher risk. I might add them in. I've discovered ESG index funds which look promising too. Going to try and make more 'responsible' investments from here on in.

I've just invested in a renewable energy fund but I'm a bit wary because this market in general is quite volatile www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/g/guinness-sustainable-energy-class-y-accumulation/charts and this particular one has quite a bit of Chinese funds, which I'm not keen on

Here is another I was looking at www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/s/schroder-isf-global-energy-transition-c-hedged-accumulation/charts

www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/g/guinness-sustainable-energy-class-y-accumulation/charts

www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/s/schroder-isf-global-energy-transition-c-hedged-accumulation/charts

That's interesting Green , I will pop that one on my watchlist. Bit put off by the charges though (over 2%) - I stick to 0.5-0.7% index usually

@TiddleTaddleTat

That's interesting Green , I will pop that one on my watchlist. Bit put off by the charges though (over 2%) - I stick to 0.5-0.7% index usually

0.69% for Guinness 1.09% for Schroder (which I agree is high)

I'm getting 1% initial charge and 1.09% ongoing charge on HL for Shroder, what platform are you using ?

This is Guinness

Gotcha - you're right. Confusing how they state the charge and then the saving.
I think I'll consider these for my SIPP, thanks

Sorry, you asked about shroder. This is what I get on HL:

I got scared for a second that this initial saving is a bit of a catch....do you know why they call it an initial saving? Is it just for new customers or something?

Not sure , either way it'll be cheaper than trading shares on HL. I think it's the ongoing charge that'll make the bigger dent as it's over time. Probably best to invest and leave it.

The two funds have done well over the last few years, but when you look at how the 'index' has done they have actually underperformed somewhat. And the index itself has had some frightening dips:

Unless Ive got the wrong end of the stick. What do you think?

Read what shroders had to say about it in 2019! www.schroders.com/en/us/institutional/insights/equities/two-lessons-from-the-underperformance-of-alternative-energy/

I'd hazard a guess that this is a situation where past performance really can't indicate future returns. There is at some stage going to have to be a green transition and fossil fuels will lose value, recession likely, etc. Surely investors will increasingly be moving over to investments in alternative energy in the coming years . But who knows ! As ever, diversification and long term investment will be key.

Interesting!

I do agree that it's probably a good hedge for some diversification. Tbh if it doesn't take off we're doomed anyway

Which of the two funds do you think is better? Guinness worries me because of the Chinese companies. I'm so wary of China now and have cut my losses with a China fund I was invested in (down by so much!) I think they're just too much of a potential liability. The government don't care about the stock market and just introduce or ban things at will.

I am going to read up on these in more detail. I'm only planning to invest small regular amounts at this stage (£50/100per month) but important to choose wisely

I've just started investing and am looking for a green renewable energy fund too. I came across the Guinness one recently.

I agree at some point there has to be a mass switch to green energy but will it actually happen on a big scale globally? I think this is a very long term investment eg 20+ years and my time horizon is more like 10-12 years.

I've invested in AI and robotics which I think (hope!) is another long term growth area.

@Amboseli

I've just started investing and am looking for a green renewable energy fund too. I came across the Guinness one recently.

I agree at some point there has to be a mass switch to green energy but will it actually happen on a big scale globally? I think this is a very long term investment eg 20+ years and my time horizon is more like 10-12 years.

I've invested in AI and robotics which I think (hope!) is another long term growth area.

I think you're right with the time scale. Hmmmm.

@GreenLunchBox I am very very new to investing and I could be completely wrong!

I'm very conscious of my time horizon and just don't think this type of investment would be suitable for me. But that doesn't apply to everyone.

Robotics and automation is a good call @Amboseli is it the Legal and General passive fund you are going for ? Looks interesting.

@GreenLunchBox quite shocked about how much Apple inc , Facebook , Shell etc appear on some of the funds marked ESG . I've got a shortlist now having looked through the accounts. I like the look of these.