InvestNow News 16th August – Morphic – July 2019 Performance Update
Ethical Investing in Focus
In amongst the gloom of record heatwaves in Greenland in July, that is seeing rates of ice melt originally expected to occur in 2050, there are some slivers of good news. It can be hard to quantify, yet there is a perceptible mood shift taking place in the world. As a recognition of climate issues more broadly, even if governments try to impede it, consumers are voting with their feet, which always gets businesses attention. This month alone, US auto producers, hardly the paragons of climate virtue, are pushing for more regulations on emissions, against the Trump administration wishes. BHP has openly discussed targeting Scope 3 emissions – the elephant in the climate room – infuriating the conservative government of Australia. This is the same government who slashed Renewables targets five years ago and removed carbon pricing, arguing they were unachievable and would cripple the industry. These targets will be passed anyway next year, without a carbon price. So, on bad days, just remember: how you spend your money really does make a difference!
The Fund rose 1.8% in July, whilst global markets rose 2.1% in AUD terms. Global equities rallied 0.2% in USD terms, consolidating the gains of June.
July saw a large divergence between regions, with the USA rallying (+1.4%) whilst Asia Ex-Japan struggled (-1.6%) against a stronger US dollar and a lack of resolution on trade issues. Tech stocks led the rally (+1.7%), with the cyclical sectors of Materials (-2.8%) and Energy (-2.9%) the laggards.