The investment strategy
The combined investment approaches
Ethius investment strategy is made up of a combination of various investment methods that aim to reinforce the sustainability approach of the Ethius fund. The methods are applied sequentially in a multi-step process.
The “best-in-class” filter is used to compare companies with other companies in the same branch.
As part of the ESG Corporate Rating, the companies are rated by ISS ESG in the six categories. Depending on the industry, environmental and social criteria are weighted differently.
The evaluation of the company-related data is carried out by ISS ESG. For each industry, individual standards are defined that must be achieved in order to be awarded Prime Status. Regular updates ensure that the information on which the rating is based and the overall rating are up to date.
SRI investment approaches
The point in time at which the individual investment methods are applied varies during the investment process.
For the ethically sustainable title selection, the application of “positive” and “exclusion criteria” takes place, thus promoting and avoiding approaches are used for the purpose of the title pre-selection.
What remains is a company preselection of around 400 individual values, which are analyzed in an individual title review by the ethics committee. Approx. 50 companies are then approved for investment decisions.
Matthias Kopp (Head Sustainable Finance of the World Wildlife Fund WWF)
Walther Hirche (Chairman, Member of the Board of the German UNESCO Commission, Ex-Minister of Economics of Lower Saxony & Brandenburg)
Marlies Hofer-Perktold (Head of "Finances & Controller Services" in the Diocese of Innsbruck / board member at CRIC eV)
Wolf Martin Waldow (Senior Church Councilor of the Evangelical Lutheran Regional Church of Hanover)
Berenike Wiener (Deputy Chairwoman, Head of CSR and Sustainable Finance, Director of Evangelische Bank eG)
Dr. Bernd Balkenhol (Professor at the Chair of Economics and Econometrics at the Université de Génève, former Head of the Social Finance Department at the ILO)
Dr. Wolfgang Gehra (Professor at the Munich University of Applied Sciences)
On the basis of this detailed preliminary analysis by the ethics committee as well as the ESG and sector analyzes, the Ethius Factbook is created in which opportunities and risks with regard to sustainability performance are explicitly documented for each company.
Overview of our Factbook
This individual stock analysis also provides the basis for the sustainability analysis as part of the engagement process.
Commitment is an important component in Ethius' ethical-sustainable investment strategy, as actively influencing corporate management can accelerate the chance of a sustainable change in the business policy of stock corporations and thus the shareholding can assert a direct effect on the fund companies.
The last fund component among the active investment approaches is the philanthropy in development projects. Ethius Invest issues a systematic turnover tax on the asset management fee for the promotion of the seven fields of activity.