The dominant market narrative currently concerns the trade war, which, indeed, necessitates prudent risk management. But our conviction is different, and it has not been shaken by developments in tariffs: we believe the transition to a decarbonised economy is a powerful long-term theme that remains intact.  

The climate transition is driven primarily by economic, industrial, engineering and efficiency reasons rather than political factors. We believe it is therefore unlikely to be derailed and remain committed to implementing a disciplined and truly diversified investment approach that tracks benchmark performance while also providing additional, material exposure to the net-zero transition.
 

We see genuine divergence arising between companies that are transitioning to a net-zero future – we call them transitioners – and those climate laggards that are not. While favouring such companies in our Silvercrest strategies, we invest across all industries, including in high-carbon sectors. This allows us to maintain exposure to all areas of the economy close to the benchmark and boosts the resilience of our portfolios to sector rotations. 

As tariffs reshape international trade, we believe that transitioners in all regions of the global economy could be more resilient to economic shocks due to their exposure to the net-zero theme.

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Combined with our efficient portfolio construction, this method has consistently positioned us to navigate economic and market shifts effectively, while also ensuring alignment with benchmark performance.