Generali Investments has updated the investment strategy of its global equity sub-fund, following its October sustainable rebrand.
From 1 October, the sub-fund became the Generali Investments Sicav (GIS) Sustainable World Equity fund, which offers investors access to "stocks with solid fundamentals" across developed markets, along with strong ESG criteria.
The sub-fund will seek to provide a high diversification across different sectors, countries and currencies in which it will target "recognised leaders" with strong profitability and sustainable financial leverage.
Investors are becoming more ESG conscious and this trend has been enhanced by covid-19 pandemic"
ESG analysis is built into the sub-fund in a three step process, the first of which is the Generali Group Ethical Filter that excludes firms based on "major controversies", followed by a positive screen identifying ‘best-in-class' companies within each sector.
Following these, the management team utilises a combined quantitative/qualitative analysis, blending both opinions on the investment ideas with a quantitative framework to optimise risk/return.
Carlo Trabattoni, CEO of Generali Investment Partners, said: "Investors are becoming more ESG conscious and this trend has been enhanced by covid-19 pandemic, highlighting the importance of investing towards a more sustainable economy and inclusive society.
"Generali Group plays a leading active role supporting the sustainable transition and, as Generali Investments, we will keep enhancing our ESG-compliant solutions, offering our investors sustainable performance and superior resilience, combined with a positive and measurable impact on society and environment".
This article was first published by our sister title Investment Week