- Energy: Companies that prioritize renewable energy and sustainable practices are integral to the fund’s portfolio. This includes firms involved in solar energy, wind power, and energy efficiency technologies.
- Technology: The fund seeks companies that use innovation to drive positive change, such as those focused on digital solutions, clean tech, or creating more sustainable supply chains.
- Finance: The fund may invest in financial institutions with strong ESG practices, such as banks that offer green financing or promote social responsibility in their lending practices.
- Consumer Goods: The fund targets companies with sustainable production practices and those that provide products or services that contribute to social good, such as eco-friendly products or those supporting communities.
Performance and Risk Factors
The K-TNZ-Thaiesg Fund’s performance is influenced by both financial factors and the broader ESG environment. As the fund targets companies with strong ESG practices, its performance may be more resilient in the face of regulatory changes related to sustainability, as well as increased consumer demand for ethical businesses.
However, investors should be aware of the following risks:
- Market Risk: The value of the fund’s investments can fluctuate based on broader market conditions. Economic downturns or negative market sentiment can impact the performance of the underlying stocks.
- ESG Risk: While the fund focuses on companies with strong ESG practices, there is a risk that some of the companies may fail to maintain their ESG standards, potentially affecting the fund’s performance. Additionally, the landscape for ESG regulations is constantly evolving, and changes in ESG standards may impact certain companies.
Sector-Specific Risk: As the fund invests across a broad range of sectors, there is exposure to sector-specific risks. For example, energy companies may be impacted by fluctuations in commodity prices, while technology firms may face regulatory scrutiny or innovation challenges. shutdown123