BayernInvest and Deutsche Kreditbank (DKB) have launched three sustainable funds, which should, for example, implement the United Nations Sustainable Development Goals (SDGs) in their investment approach.
The funds are taking up the Paris Climate Action Plan of Action and the well-defined 17 SDGs (Sustainable Development Goals). They cover topics such as health care, education, sustainable urban planning and poverty reduction. At the same time, they consistently exclude controversial topics such as nuclear energy, armaments, tobacco and child labour.
The funds are aimed at private investors as well as institutional investors who are looking for a balance between return and sustainability and also make it possible to choose between priority topics.
All three investment solutions are based on a stock-factor strategy that incorporates Value, Quality, Momentum, and Low Risk style factors as well as ESG criteria (environmental, social, governance) in stock selection. Initially, the investment universe will be reduced by securities that violate ESG fundamentals (such as nuclear energy producers, tobacco, weapons, violations of UN Global Compact principles) and/or fund-specific ESG criteria. Then, with a factor investing strategy, those securities are selected in which certain factors or quantifiable corporate characteristics - e.g. ROE (return on equity), historical performance, volatility - expect a higher performance.
The funds will be managed by BayernInvest Kapitalverwaltungsgesellschaft mbH, based in Munich.