In thematic impact investing, biotech firms focusing on climate resilience posted 11% quarterly gains, supported by patent approvals in seed technology. Analysts expect capital inflows to accelerate ahead of policy announcements. The stock's rise followed a significant jump the previous day after the company announced it was expanding its partnership with Kroger to offer branded drugs at discounted prices. GoodRx's RxSmartSaver solution was set to be available at Kroger's 2,200 pharmacies. This expansion also included coverage for popular weight loss medications. The news appeared to build investor confidence in the company's growth prospects. The performance of sustainable fixed income funds differs significantly from that of equity funds. While sustainable equity performance peaked in 2020 and has continued to underperform for the past three years, sustainable fixed income performance recovered in 2023 and has consistently outperformed their conventional peers since. We have also seen smaller dispersion in sustainable fixed income fund performance than in sustainable equity. The greater performance resilience of sustainable fixed income has been rewarded with flows and can be a constructive part of a broader sustainability-oriented portfolio. Thematic impact investing in circular economy ETFs performed strongly, up 4.6% over the past week, driven by recycling tech firms’ earnings surprise. Buy-side strategists note favorable forward P/E ratios relative to growth forecasts.
