The sustainable strategies within our multi-asset offering are actively managed portfolios with a special focus on integrating sustainability criteria. With these strategies, we aim to create robust portfolios through broad diversification across and within asset classes.
What we do
Sustainable multi-assets are solutions designed for investors who want to tap into a broad range of asset classes and, at the same time, prioritize ESG factors. Our solutions invest primarily in equities and fixed income, complemented by insurance-linked strategies, hedge funds and real assets. The asset allocation varies according to the investment horizon and the risk/return profile of the respective strategy. We mainly implement our approach through direct investments, with sustainability parameters and asset quality playing a pivotal role in the selection process.
Sustainability parameters – We believe that the integration of sustainability criteria may improve risk-adjusted returns and that companies that operate according to sustainable practices have a competitive advantage in the long term. A focus on sustainability helps to reduce long-term risks in portfolios that might otherwise be overlooked in traditional financial analysis. It also creates opportunities to generate positive environmental and social impact, while enhancing company value through sustainability-driven improvements. We rely on our proprietary analysis tool to evaluate securities from an ESG perspective.
Quality of assets – We believe that quality can be found in companies with strong fundamentals, continuous profit growth and a more defensive positioning compared to the overall market. With our quality investment approach, we look for companies that have a robust business model with high barriers to entry. Over the long term, this often leads to above-average pricing power and consequently to above-average margins. It is also essential that a company has a robust balance sheet and strong return on capital invested (ROIC). Finally, it is important to us to secure quality assets at a reasonable price.
Sustainability as a long-term performance driver
We regard sustainability factors as an indicator of the quality of a company’s operating activities and its competitive positioning. We manage our sustainable multi-asset strategies according to the following principles:
- Sound sustainability profile – We integrate ESG factors at all levels of the investment process for our sustainable strategies and exclude companies and countries that are active in controversial sectors or do not meet certain minimum standards.
- Climate action – We strive to reduce the carbon emissions from our portfolios in line with global efforts to limit global warming to 1.5°C and to achieve net zero emissions by 2050 or earlier.
- Active ownership – We play an active role in promoting ESG integration in the investment community, actively engage with companies and exercise our voting rights.
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