Quaterly news from Grünfin 2024 Q1

Markets in Q1 2024

Q1 2024 has seen continued strength in the financial markets, marked by significant milestones and promising trends. Notably, S&P 500 reached a historic high, surpassing the magic 5000-point mark. Improved corporate earnings have contributed to good returns, and inflation is under control. Lower interest rate and cash returns are on the horizon due to expected action by central banks.

According to JP Morgan’s Financial Markets forecast for 2024, stock markets should do well in moderate inflation scenarios (2-4%) with a historical average S&P 500 return of nearly 14%.

With stock markets reaching all-time highs, investors should develop discipline in decision-making. This helps to avoid the influence of market pessimism and “Armageddonists'” predictions, while sticking to a regular, long term, low cost, diversified approach.

Urgent need for climate action: potential risks and opportunities

Great analysis by Morningstar, titled “For 2024, Expect Investors to Stay Laser-Focused on Climate, Sustainalytics & Indexes” indicated that current corporate emission pathways are aligned with a 3.0-degree Celsius future. This is way above the Paris Agreement’s target of limiting global warming to 1.5 degrees. This stresses the urgent need for climate action and the potential risks and opportunities in the strategy.

By investing with Grünfin, you continue to take action by:

• Holding companies accountable beyond their stated commitments by demanding transparency in their data
• Diversifying portfolios by including companies with lower climate transition risk exposure
• Preparing portfolios for various climate outcomes, emphasizing the importance of climate adaptation as the world gets warmer.

Sustainable investing gains popularity among youth

The Morgan Stanley survey found that 54% of individual investors plan to increase their sustainable investments in 2024, with 77% expressing interest in sustainable investing. 96% of millennials showed interest, compared to 60% of the Silent Generation (aged 78 or older).

The main barriers to further engagement in sustainable investing were identified as:

• a lack of transparency and trust in sustainability reporting (63%)
• concerns about greenwashing (61%)
• limited knowledge on how to start investing sustainably (52%)

This is one of the reasons we’d like to be the leaders of sustainable, impact driven investing! We do it well, and we make it easy for our customers.

Grünfin portfolios are doing well.

Our long-term customers, who have invested regularly can take delight in seeing their portfolios in green. Our best performing themes have been S&P500 Planet Friendly (11.54%) and Climate (7.39%) both outperforming their traditional indices' S&P 500 (+9.54%) and MSCI EAFE PR (+3.84%) year-to-date in Q1 2024.

Our investment approach of investing long term, regularly, avoiding timing the market, and investing in diversified sectors and strong ESG companies has been proving itself right over the past 3 years.

Grünfin is now a B Corp

We’re proud to announce that we are now a certified B Corp. This prestigious recognition reaffirms our commitment to social and environmental responsibility. Being a B Corp aligns with our core values, demonstrating our dedication to operating with transparency, integrity, and sustainability at the forefront of everything we do - while growing your wealth.

B Corp certificate, the most well-known sustainability certificate in the world, measures companies’ entire social and environmental impact. It gives transparency and trust to our customers that we hold ourselves to the highest standards.

Our impact score is in a similar category to Patagonia, a leader in sustainable business practices. We’re happy to be in the forefront of sustainable business practices and investment management. Our customers can be sure that we stand for a better world while growing your wealth long term.

More about B Corp

Awards and more!

Last but not least, Grünfin won Greentech of the Year Award, and our investment plan for talent has been nominated to the best HR solution list by the Estonian HR community.

If you’re an HR leader or entrepreneur wanting to increase retention and financial wellbeing for your team, hit us up. If you think your employer should offer an investment plan, make the introduction - we’ll do our best to make it happen.