In full effervescence of ESG funds , those that take into account environmental, social and good governance criteria in their investment strategy, there is an unappealable reality for the investor: they revalue much less this year than those focused on one of the sectors more pollutants such as that related to energy companies, and that do not have a green seal.
The difference is abysmal: while global equity funds that pursue sustainability criteria or are directly impact products (according to the terminology used by the European SFDR directive) gain 18% in the year, with Morningstar data up to 8 In October, the thematic energy funds achieved 32 percentage points more profitability, with 49.73%. If compared with natural resources funds, which include investment in mining companies as well, the difference is not so high, since they only surpass green funds by 153 basis points.
The rise in gas and oil prices throughout the year has had a lot to do with this strong recovery in energy funds, from which the actions of companies related to these sectors have benefited. Although the price of gas has already fallen by 26% since the beginning of the month, it has risen by more than 500% since January, while crude maintains a rise of more than 60% in the case of Brent.
These price increases have translated into a 39.18% return on the MSCI World Energy Index for the year, which far exceeds the almost 14% achieved by the MSCI ESG World Leaders.
Expectations for brown or dirty funds, as opposed to green ones, remain very promising, taking into account that, among the twenty integrated oil companies with a buy recommendation, the increase in their target price has ranged between 18% and 128%. % since the beginning of the year . And although the rise in oil is difficult to maintain at these levels, the crude production deficit still promises an upward trend in the coming months.
Concerns about inflation have led to this rotation of investors towards the more cyclical sectors, such as banks, companies related to commodities and energy companies. There is an additional factor that favors the potential of dirty companies that value bias managers such as Iván Martín, Magallanes investment director, pointed out in his last quarterly letter, such as animosity towards companies considered as unfriendly with the environment, not necessarily related to oil.
“The main obstacle resides in the reluctance, or directly prohibition, on the part of public administrations when granting permits for its start-up, this translates into a reduction in the supply of basic products necessary for the correct operation (and progress) of the world economy, “and he cites as an example Covestro, a world leading chemical company in the manufacture of polyurethanes and polycarbonates,” without which it would be unthinkable to manufacture car seats, electronic device components or car systems. isolation of a house, “he emphasizes.