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Funds offering added value
Raiffeisen Capital Management also offers ethical-ecological investment funds:
Sustainability does not mean sacrificing returns!
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The primary interest of profiting from the returns on financial investments by no means conflicts with ethical principles.
”Ethical investment
There are various approaches to selecting assets for the portfolio.
On one hand, there are elimination criteria such as the exclusion of fields like nuclear power, defence, alcohol/tobacco and genetic engineering or companies that infringe on human rights.
On the other, there are positive criteria such as supporting environmental technologies, renewable energy sources and so forth.
Yet another approach is the best-in-class approach (relative criteria), which involves selecting companies in a certain industry that excel when it comes to environmental and/or social issues.
Engagement is another sustainable investment strategy. In fund management, engagement is when the investors in a fund actively take part in a dialogue with companies in order to influence the ecological, social and ethical aspects of their business activities.
The portfolio for a sustainable investment fund is usually selected using a combination of elimination criteria and the best-in-class approach. Sustainability ratings are a crucial basis for the selection of securities for sustainability funds. They are based on analyses from rating agencies and sustainability research departments at banks regarding the degree to which a particular company employs sustainable business practices. The companies that prepare these ratings aim to use their extensive data collections in order to determine how high a company’s sustainability performance is – particularly compared to the competition – as accurately as possible.