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4 minute read
When you think of sustainable energy, it conjures up images of solar panels and wind farms. But it’s more than that. A lot more. The need for substantial investment into areas such as battery technology and recharging facilities for cars could potentially create opportunities for investors.
Who's it for? All investors
A remarkable energy milestone was hit in late December 2020, on a day when wind farms generated over 50% of Britain’s electricity. It serves to remind us how Britain has become a pioneer in wind energy. In fact, Britain has experienced a renewables revolution over the last decade with the growth of biomass, wind, and solar polar.
And we’re witnessing a greater focus on sustainable energy right across the planet. The European Green Deal aims to make Europe climate neutral by 2050, with a significant focus on developing an energy supply market based largely on renewable resources. And across the pond, President Joe Biden has already taken the first steps in implementing his plan for a clean energy revolution.
The investment opportunity
The anticipated construction of new power plants and wind farms is not the only area which could potentially create opportunities for investors. There is a need for substantial investment into areas such as battery technology and recharging facilities for electric cars. There’s even demand to invest in early stage developments such as hydrogen fuel, which is seen by many as potentially solving the world’s large-scale energy storage problems.
When it comes to investing, it therefore makes sense to take a diversified approach, by investing across the many different markets and technologies. The BlackRock Sustainable Energy Fund is such a fund, which you may well wish to consider.
BlackRock Sustainable Energy Fund
The fund is managed by a well-resourced and experienced team with one of the longest track records investing in the sustainable energy theme. While we’ve seen many similar new funds launched over the last few years, as new teams enter this space, we place great emphasis on the team dedicated entirely to the energy and natural resources areas of the market. We also like how it invests in quite a diversified mix of companies and industries, which means it does not place too much emphasis on any one theme or part of the market.
In addition to the BlackRock Sustainable Energy Fund, there are also three more funds on the Barclays Funds List that have a sustainable approach to investing. Find out more information on these funds.
Correct at the time of publishing.
To diversify your investment, you may like to consider our own Barclays Ready-Made Investments (RMI). The RMI are just one example of a range of diversified funds which allow you to select the level of risk you are most comfortable with. These multi-asset funds invest in passive funds across a range of asset classes and regions, offering a globally diversified one-stop solution for investors. Ready-Made Investments are not the only funds that we offer and they won’t be appropriate for everyone.
These are our current opinions but the future, as ever, is uncertain and outcomes may differ. Past performance of the fund and its manager are not a reliable indicator of their future performance.
We don’t offer personal investment advice so if you’re unsure you should seek that independently. Funds are designed for the long term so you should only consider them if you can stay invested for at least five years.
Read the Assessment of Value report [PDF, 683KB] for funds run by Barclays.
The value of investments can fall as well as rise. You may get back less than you invest. Tax rules can change and their effects on you will depend on your individual circumstances.
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