VTB Capital Investment has launched responsible investment funds, the first company in Russia to do so.
When managing assets, the investment team is guided by the ESG criteria (environmental, social, governance) and focuses not only on financial aspects, but also on factors related to the company's environmental, social and management policies. VTB offers clients two such funds - for investment in shares and bonds of Russian companies.
Responsible investment is an approach to capital allocation based on companies' aims of solving social and environmental problems in society, and in the long term, showing stable results of business growth. The potential return on shares of responsible investment companies over the long-term may be due, among other things, to the growing popularity of this concept worldwide. In recent years, the global financial markets have seen a significant influx of investment in shares of companies with a high ESG rating, which supports them in high volatility conditions.
Companies that meet ESG criteria are becoming the focus of an increasing number of investors around the world, and we are confident that this approach will also be in demand in Russia."
Open-ended mutual Fund market financial instruments "VTB - Equity Fund. Responsible investments" is intended for clients with an aggressive investment strategy. The Fund's strategy is aimed at long-term capital growth by investing in shares of Russian issuers that have a high growth potential and have simultaneously passed the analysis and meet the ESG criteria.
The open-ended mutual investment fund financial market instrument "VTB - Stock Fund. Responsible Investments" is aimed at conservative investors. The Fund's strategy is aimed at investing in corporate bonds of Russian issuers, for which environmental, social and managerial factors have been integrated into the production process.
For both funds, the minimum investment amount is 1,000 rubles ($13.90). Both involve active management of funds, with continuous analysis of current macroeconomic processes in Russia and the world, and broad diversification of risks by issuers.
Vladimir Potapov, CEO of VTB Capital Investments, and senior vice-president of VTB, said: "Investing is becoming an increasingly popular way to save and grow funds among the population. We see a significant influx of investors to the market and want to give them the opportunity to invest responsibly, in accordance with the best global practices of ESG."
He added, "Companies that meet ESG criteria are becoming the focus of an increasing number of investors around the world, and we are confident that this approach will also be in demand in Russia. For our investors, it is important that investments do not just work for them, but work for the benefit of the entire society."