Socially responsible investing (‘SRI’) through a balanced fund
Econopolis Patrimonial Sustainable is a balanced fund that invests in shares and bonds in countries that meet our strict SRI criteria.
The fund pursues a two-fold goal: acting in response to sustainable opportunities offered by the new economic landscape, while simultaneously protecting the sums invested against financial storms and volatility in the markets.
We have a 4-step approach to our investment process. Firstly we analyse the macroeconomic situation. Then we decide on our asset allocation. To implement the asset allocation we use an SRI-screened universe and then select the most interesting bonds and equities.
Macroeconomic analysis & market insights
Our team of economists analyse the global macroeconomic climate and describe the opportunities and challenges. We use proprietary models to estimate economic developments. These fit in to our asset allocation model.
Translation to asset allocation
The Asset Allocation Committee (AAC) decides how the fund’s assets are allocated. The committee’s decision-making process is driven by the investment clock in which the economic momentum, valuations, tactical indicators and monetary environment all play a key role. That gives us a global picture of the economic cycle we are in, and an assessment of the situation in the financial markets.
Socially Responsible Investing
Socially responsible investing places the focus squarely on three cornerstones: environmental impact, social policy, and good governance. Companies that are aware of the impact of their activities on the social and natural environment are better prepared to deal with future challenges. Based on data collated by SRI specialist Sustainalytics, we select only those countries and businesses that meet our strict criteria. We also observe the Norwegian Pension Fund’s Ethical Advisory Board exclusion list.
Selection of assets
We have three pillars for our investment decisions: quality of the company, valuation of the asset and scenario analysis to determine our conviction level. Only when the instrument meets all three criteria, is it included in the fund.
Why Patrimonial Sustainable?
Econopolis Patrimonial Sustainable can invest unrestrictedly in equities and bonds around the world. We apply no geographic restrictions in our selection to be able to anticipate global opportunities for growth. Investments referring to emerging economies also have their place in the portfolio. However we prefer to achieve this in the fund through companies in the West that generate a major part of their activities and turnover in developing countries. We do invest in emerging markets but only if governance, quality, valuation and liquidity are sufficient.
Econopolis has a collaboration agreement with Sustainalytics, the leading global researcher into business sustainability. Sustainalytics reviews the environmental and social policies of companies and countries, as well as the quality of governance. Only countries and businesses with a high sustainability rating qualify for fund inclusion.
Team of specialists
The fund managers form a specialist team with extensive and broad experience. Interaction and consultation are key issues within the team. We adopt a long-term perspective and strive for steady growth of the asset value without losing sight of the risk of a downturn.
Disciplined decision-making process
One of the things required by our investment process is a comprehensive financial analysis that forces us to exercise the necessary discipline in terms of valuations. We do not simply follow the markets, nor are we tempted by investments that do not meet our valuation criteria. We also steer clear if we have doubts about the corporate governance of a company.
Blindly following an index is not part of our investment philosophy. We do not invest in countries, sectors or companies simply because they are part of an index; we only invest in line with our own convictions.
Characteristics and fees
- Name: Econopolis Patrimonial Sustainable
- Type: Luxembourg SICAV
- Capitalisation (ISIN: LU0889925391) and distribution (ISIN: LU0889925474)
- Launch date: 19/02/2013
- Management fees I-class: 0.6%
- No entry fees, no exit fees
- No performance fees
I-class reserved for institutional investors
- The fund invests in global equities and bonds that meet our strict SRI criteria.
- There is flexibility: allocations to bonds and equities can vary between 0% and 50%.
- The composition of the fund is based on strong convictions and sound insights, acquired from intensive research.
- The focus is on specific themes, countries and companies, carefully selected through an independent point of view.
- No unclear or complex performance-related fees are charged.