As the world wakes up to the urgency of the climate crisis, investors are increasingly turning their attention to ocean-focused funds that prioritize sustainability.
These funds aim to drive positive environmental outcomes while generating attractive financial returns, and are attracting growing interest from a range of investors.
One of the main drivers of this trend is the recognition that the ocean is a critical part of the global economy, with many industries relying on marine resources for their operations. From fishing to shipping to renewable energy, the ocean supports a range of economic activities that are central to modern life. At the same time, these industries are facing growing pressure to become more sustainable, as consumers demand greater environmental responsibility and regulators implement new policies to protect marine ecosystems.
Ocean-focused funds offer investors a way to tap into these emerging opportunities while promoting sustainable growth. These funds typically invest in companies that are working to address environmental challenges such as plastic pollution, overfishing, and climate change, while also generating attractive financial returns. By investing in these companies, investors can support positive environmental outcomes while also potentially benefiting from long-term growth in these sectors.
Ocean-focused funds are a relatively new type of investment, and as such, there is limited historical data on their performance compared to traditional investment funds. However, there is growing evidence that sustainable investing, including ocean-focused funds, can offer competitive financial returns.
A report by the Global Sustainable Investment Alliance found that sustainable investment funds outperformed traditional funds in many regions over a 10-year period, including in the United States, Europe, and Canada. Another report by Morningstar found that sustainable funds performed well during the COVID-19 pandemic, with many outperforming their traditional counterparts.
In terms of ocean-focused funds specifically, a report by the Ocean Risk and Resilience Action Alliance found that these funds can generate competitive financial returns while also promoting sustainable growth. The report analyzed a sample of ocean-focused funds and found that they had an average net return of 7.7% per year over a three-year period.
However, the growing interest in sustainable investing and the potential for both financial returns and positive environmental impact suggest that ocean-focused funds could continue to perform well in the future.
One example of an ocean-focused fund is the Althelia Ocean Fund, which invests in companies that promote sustainable seafood production, reduce plastic waste, and develop innovative marine technologies. Althelia Ocean Fund has generated an average annual return of around 6% since its launch in 2018. Another is the Ocean Fund from Pictet Asset Management, which focuses on companies that are involved in sustainable ocean industries such as renewable energy and aquaculture.
The following is list the top 10 performing Ocean Funds based on historical performance.
1. Althelia Ocean Fund
2. Blue Ocean Partners' Sustainable Ocean Fund
3. Encourage Capital's EKO Green Carbon Fund
4. Aqua-Spark
5. Meloy Fund
6. Ocean Assets Fund
7 .New Ocean Capital Management
8. Mirova Natural Capital
9. SeaAhead BlueSwell Fund
10. The Nature Conservancy's Blue Bonds for Ocean Conservation
One key challenges to ocean investing. is the lack of transparency in the sector, which can make it difficult for investors to evaluate the environmental and social impact of their investments. Another challenge is the need for more supportive regulatory frameworks that incentivize sustainable practices and promote transparency. The growing interest in ocean-focused funds suggests that investors are increasingly recognizing the importance of sustainable growth and the role that the ocean can play in achieving this.
Our FUTR PROOF Certification aims to provide investors with deep analytics and transparent reporting of a Company's environmental and social impact alongside via a data driven real-time framework.
To learn more click here.
