Stable on track: Causes fund continues to move forward | 16/07/22

The comeback of oil and coal makes some people doubt green investment strategies. With these portfolios, it is unfounded. By Julia Gross € uro Sunday.

DEnergy stocks are soaring, making some investors who have opted for sustainable investments unstable. Greenwashing allegations, recently made by DWS, fuel skepticism. And now the European Parliament has also agreed to classify investments in natural gas and nuclear power as sustainable under certain conditions – a view not shared by many investors.

In such phases of uncertainty, it may pay to focus on long-term development. The fact is: companies that are sustainable and contribute to environmental and climate protection have rarely had a better starting position for their business than they currently have. The orientation is politically desirable and will be generously promoted in certain segments in the coming years. The investment environment also places great emphasis on such companies and their commitment is rewarded.

In terms of performance, good sustainability funds do not have to hide, whether they focus on the ecology and environmental protection sector or apply strict sustainability standards for widely diversified equity investments. While this does not currently protect them from losses, it shows that investors can do well in the long run even with the limited investment universe.

Orientation when choosing a fund

When looking for funds with a good risk-return ratio and a portfolio that is sustainable, especially with regard to environmental and climate issues, Finanz Verlag’s fund assessments offer information. FondsNoten, which we calculate monthly together with the analysis company FondsConsult, looks at returns and value fluctuations on a portfolio over four years, always in comparison with funds from the same investment category. There are also qualitative criteria such as management continuity.

The environmental assessment, on the other hand, assesses the specific investments in an equity fund’s portfolio according to ten environmental, social and climate protection criteria. There are several points for companies with an environmental orientation or activities within renewable energy, as well as too low CO2Emissions. The rating decreases when investing in companies that run their business with fossil fuels, nuclear power or weapons. If the fund contains shares from companies that are on the Norwegian state assets fund’s exclusion list due to coal mining or coal-fired electricity production, the portfolio will automatically receive the worst eco-rating “E”. Mountain-View Data recalculates the eco-rating for Finanz Verlag every quarter.

Repeated offenders at the top

From the current evaluation of Eco-Ratings, we present the best results from the categories global equity funds and global equity funds ecology in the table. Portfolios that have been on the market for less than 12 months or have a volume of less than DKK 20 million. EUR, were not taken into account.

All the mentioned top funds are “repeat offenders”, which means that they have already achieved the grade “A” in previous eco-rating evaluations. This speaks to consistency in the investment strategy. In particular, Erste Stock Environment and Green Effects NAI-Werte Fonds have been drawing attention to themselves for some time thanks to their good performance and constant “A” ratings.

Of First floor environment the Austrian Erste Asset Management is a so-called feeder fund for the Erste WWF Stock Environment, in which German investors can no longer invest directly. But it does not matter, the fees are identical at 1.80 percent and so is the portfolio in the end. Austrians are heavily dependent on renewable energy and energy efficiency (a total of almost 60 percent in the portfolio). The two American solar cell companies Sunrun and Sunnova are the heaviest. Investors focusing on renewable energy must be able to withstand large fluctuations. Since the beginning of the year, the equity environment has fallen by 18 percent.

Behind GreenEffects NAI Value Fund There is an unusual construction here: You can only bet on the 30 stocks that are included in Securvita’s natural stock index. They are industrial pioneers who “contribute to ecologically and socially sustainable solutions to key human problems”. Extensive exclusion criteria apply; In 2021, for example, four companies were exchanged. The health insurance company Molina, the medical technology group Smith & Nephew and the infrastructure specialist Acciona are currently given the highest weight. Fees are low at 1.12 percent and volatility is below average.

structural growth

that Mainly first-Portfolios score in Eco-Rating with the exclusion of weapons manufacturing as well as coal and nuclear energy. The strategy, which focuses on structurally growing topics, also helps with the evaluation. example digitization: Companies often have a low CO here2emissions and make positive contributions to environmental protection, for example by making processes more efficient. Unlike Unconstrained, Global Equities works with hedging strategies.

With Faro’s listed fixed assets a fund for real estate and infrastructure stocks, first launched in 2020 (see also page 20), also came out on top. It also still young Heptagon future trends is dependent on long-term trend topics.


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