"Sustainable Alpha Fund" – a vision becomes reality
The Sustainable Alpha Fund is a multi-asset product managed using strict exclusion criteria and a comprehensive ESG (Environmental, Social, Governance) sustainability model to support a climate-friendly and sustainable future. The sustainability criteria are set and ongoing monitored by an independent advisory council.
Past performance is not a guide to future performance, nor a reliable indicator of future results or performance.
Source: Internal Advisory Invest GmbH data base.
Test-Portfolio (Simulation) to the 16th of October 2017: To prove performance stability the portfolio has been tested over the course of more than three years taking into account all exclusion criteria.
The exclusion criteria refers to sectors (e.g. oil and gas), products (e.g. weapons) or themes (e.g. animal testing). Among others, these include
- Coal, Oil & Gas
- Conventional automobile manufacturers
- Green gene technology
- Nuclear energy
- Animal testing
- Child and forced labour
- Armament industry
An investment decision is based on companies (equity or bond) achieving exceptional sustainability results (ESG Plus model). Furthermore the portfolio is constantly screened on fundamental data and „carbon footprint analysis” to complete the Sustainable Alpha approach. We define it as our clear target to stay well below market peers related to carbon exposure as well as investing into the fundamentally strongest businesses. Our strategy attracts retail as well as institutional investors and offer them a sustainable and climate friendly alternative.
All ESG analysis is supplied by our external and independent partner ESG Plus.
Details to the “Sustainable Alpha Fund” based on the tested universe. Actual numbers are published on the fund factsheet.
Ethical-ecological investing under strict rules
Are sustainable investment strategies gaining importance?
One would think so. But numbers prove different.
Taking Germany as an example within the EU, the overall share of sustainable investment products counted for just 2.8 % at the end of 2016. FNG (“Forum nachhaltiger Geldanlagen”) reported this number at 5.8 billion Euros for Austria in 2015, 3.5 % of all assets under management.
Does the majority of sustainable products on the market stand up to strict environmental and sustainable criteria?
Probably not. Looking closely, a good number of products on offer are more a cheat package than a real sustainable alternative. A study recently published by a research group and supported by the Austrian ministry for agriculture, forestry, environment and water management shows that 3.14 billion Euros of money invested in sustainable branded funds include 150 million (4.8 %) directly invested into the fossil fuel industry (study carbon bubble – german).
What distinguishes the "Sustainable Alpha Fund" from other sustainable products?
A lot. The “Sustainable Alpha” criteria catalogue was drafted and designed in cooperation with leading environmental organisations, and is fully transparent. We only invest in liquid, global stocks and bonds monitored under this strict set of rules.
Is it possible to achieve sustainable and durable return while investing under these strict set of rules?
Definitely yes. The concept for the “Sustainable Alpha Fund” successfully passed a three year test phase and achieved a better performance than global stock indices like the Global Stock World Index, the S&P 500 or the Euro Stoxx50 – all this with a comparable low portfolio volatility (graph portfolio-test).
The climate treaty signed in Paris aims to keep global warming below 2.0 degree. The “Sustainable Alpha” clearly focuses on a 1.5 degree future, according to leading scientists even 2.0 degree would be too much to cope with. The fund is a flagship product for investment funds, how strategies can and should implement new rules, not in the future but now. The exceptional performance during the portfolio test proved that strict and sustainable investing attracts all investors, not only the ethical driven one. The UCITS-Fund will attract retail as well as institutional money. The fund is aligned to a well diversified absolute-return-approach and invests globally in listed stocks, bonds and money market instruments. The “Sustainable Alpha” is not an environmental theme fund or a private-equity-fund – and offers a great alternative to conventional as well as sustainable products. After the signing of the Paris climate treaty by 194 countries in 2015 there is clear need for policy makers and regulators action. Action is still missing by today. The financial market as well as the private sector must contribute to achieve this goal rather sooner than later.
Today financial markets are far from climate-fit. “Sustainable Alpha” is one of the first steps in the right direction.
How to invest in the "Sustainable Alpha Fund"?
The fund started trading on 16th of October 2017. You can buy shares at your principal banker or online using the ISIN which is indicated in the fund documentation. For any further questions please do not hesitate to contact the fund management company Advisory Invest (firstname.lastname@example.org).
The Advisory Invest GmbH is an investment firm pursuant to paragraph 3 in the Austrian Securities Supervision Act 2007 (WAG 2007).
For the Sustainable Alpha Fund, Wolfgang Rattay is advising the Advisory Fund-Management team.
Wolfgang started working in the financial industry in 1987. In the 90’s he was responsible for the foreign exchange derivative business for the former GiroCredit (today’s Erste Group). From 1994-2000 he lead a team at Nomura International in London dealing with warrants and derivatives.
Later he was a part of a global strategy investment team at Deutsche Bank in Frankfurt, dealing in all asset classes and managing director at Bank Austria and UniCredit London responsible for the emerging markets business. Since 2015 he fully focuses on sustainable investing in times of climate change. (Article)
This marketing material solely serves as non-binding information. It is not a prospectus according to the Austrian InvFG (Investment Fund Law) or KMG (Capital Market Law) and does not represent a detailed description for a market, an economic sector, a fund or a financial instrument. The related information does not represent an offer or a recommendation to purchase or sell any financial instrument.
This marketing material does not replace professional consulting and in particular does not serve as a substitute for a comprehensive risk assessment.
The actual prospectus including all fund terms as well as the client information document (both in German language) are available at no cost from Liechtensteinische Landesbank (Österreich) AG, Hessgasse 1, 1010 Vienna or from Advisory Invest GmbH, Gottfried-Keller-Gasse 2/3, 1030 Vienna (or online at www.advisoryinvest.at or http://www.llb.at).
Datasource: Internal database from Advisory Invest GmbH and the database from Liechtensteinische Landesbank (Österreich) AG.
This marketing material dos not represent an offer, nor an invitation to purchase or sell a financial instrument. Potential investors should be clearly aware of the risks incurred by an investment and not make any investment decisions before having received comprehensive investment advise from an authorised professional investment advisor.