Stockholm (NordSIP) – Frankfurth-based asset manager Union Investment, the investment arm of the German DZ Bank Group, has launched the UniInstitutional SDG Equities fund. The fund, which is aimed at institutional investors, invests in equities of companies globally whose activities correspond to the UN Sustainable Development Goals.
17 SDGs were adopted by the member states of the United Nations in 2015 as part of the 2030 Agenda. These include areas such as sustainable growth, sustainable urban development, sustainable management of natural resources, health care, education, poverty reduction, gender equality and innovation.
Only companies in which over 20 per cent of consolidated revenue is linked to the SDGs are eligible for consideration in the UniInstitutional SDG Equities fund’s investment universe, whereas the average SDG quota of companies in the fund must exceed 50 per cent. “At least every second euro in the und must have an effect in line with the UN sustainability goals,” said portfolio manager Jörg Schneider. “This ensures that at least half of the fund’s assets are used to pursue the UN SDG’s.”
The fund screens stocks from a universe of 1200 companies with a concentrated portfolio, including roughly 60 holdings from sectors such as water management, healthcare, renewable energy and sustainable transport. A three-stage research process comprised of sustainability analysis, fundamental analysis and risk adjustment determines the composition of the portfolio.
“We invest in companies with sustainable business models that promise high growth rates in the long term. The objective is attractive returns combined with positive ecological and social contributions,” Schneider said.
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