However, this does not always spell doom and gloom.
In fact, Docherty expects the recent carbon emission fears and the war in Ukraine to result in major investments within tech and energy-based thematic funds.
He says: “Carbon emission fears have for some time been driving the transition from fossil fuels to clean energy and we believe that massive ongoing investment will see this process continue.
The war in Ukraine means that the challenge of energy security has been brought into even sharper relief, such that governments and corporates see investment in secure clean energy as all the more urgent.
"As the quantum and pace of this investment increases we would therefore expect there to be continued growth in funds exposed to the clean energy theme as investors seek exposure to those corporates both enabling the energy transition and those firms whose actions in mitigating climate change will also reduce our use of, and dependence on, imported fossil fuels.”
Daniel Elkington, IFA from Keep It Easy Financial Planning, also suggests the war in Ukraine could see a rise in energy-based thematic investing.
He says: “With Russia cutting supplies to Europe, the working theory is that France, Germany et al will pile resources into energy transition to accelerate the UN's agenda 2030.
"Other energy funds should receive inflows due to the rampant profiteering, ie return on investment for investors in these sectors.”
Aamina Zafar is a freelance journalist
