As 2016 draws to a close, many are wondering what lies ahead in the new year, particularly in light of the upcoming administration change.
For investors, they wonder how this will impact their portfolios, and with Trump’s uncertain policies on the environment–how will sustainable investments (SRI) shake out?
A special report, part of Morningstar’s Guide to Alternative Investing, takes a look at just that. With many projects poised in the water infrastructure and sustainable transport system spaces, these companies should do well. “2017 could also see pivotal changes in the market for electric vehicles,” the report said. These cars are becoming more widely accepted and we’re seeing an uptick in model announcements from mainstream manufacturers. We might see as much as 50% growth in the space.
“With renewable energy reaching technological maturity and investment scale, we are clearly seeing the formation of new forms of asset classes in environmental investment, such as fixed income and infrastructure. Such diversifying assets can play a valuable role for active investors seeking exposure to these themes,” the report concluded.
So with much seeming up in the air in the year ahead, let’s take some comfort in the potential positives in these areas of the SRI spectrum.
Check out the full report here.