How have Socially Responsible Investments performed during the COVID-19 crisis?
As the COVID-19 pandemic unfolded and caused financial markets to gyrate, socially responsible investments have so far ended up outperforming their mainstream counterparts. But why would this be the case?
June Monthly Market Update
The benchmark MSCI World Index (NZD) fell 1.3% in June despite most equity markets being up for the month. This was a result of the NZ dollar rallying, primarily against the US dollar and the Yen. While the tech-heavy Nasdaq Index shot up 6.0% as investors sought technology companies that might benefit from the pandemic.
Taking the bear by the horns
Those who bought into passive strategies such as index funds, which offered low fees and a market return may want to consider the merits of active portfolio management in the current volatile environment. As fund managers it's our job to navigate through the noise.