Erste Asset Management Investment Blog

Responsible Investment Universe

Responsible Investment Universe
Responsible Investment Universe
Created by | Published on | Topics: Sustainability
Tags:
Share post:

The definition of the investment universe is the most important step in the construction of a fund.

Admitted September – November 2018

Johnson Controls International plc (sector: Building Products), EAM ESG rating of 11/2018 B-, is a globally operating conglomerate with its core areas in building efficiency, batteries, and distributed energy storage.

  • 😊 Expiry of the criterion of exclusion “controversial business practices – corruption”
  • 😊 Significant share of sales in production and services in the field of clean technologies, e.g. building efficiency, storage technology
  • 😊 Strong focus on avoidance and reduction of waste, recycling
  • 😢 Rising greenhouse emissions in recent years, no clear reduction goals

Epiroc AB (sector: Construction Machinery & Heavy Trucks), EAM ESG rating 11/2018 of C+. The company was created in June 2018 by a spin-off of the construction and mining business of Atlas Copco AB. The range of products includes, among others, drilling solutions, loaders and trucks, excavator attachments, rock reinforcement, as well as spare parts and services.

  • 😊 40% women on the board of directors
  • 😊 Comprehensive code of conduct in business ethics
  • 😊 Comprehensive guidelines and measures in the field of product safety
  • 😢 Hardly any information with regard to goals for the reduction of emissions and waste

Excluded

Danske Bank A/S (sector: Diversified Banks), EAM ESG rating 11/2018 of C, is the largest Danish bank with a headcount of more than 20,000 in more than 240 branch offices across 16 countries. In addition to bank services for retail, corporate, and institutional clients, Dansk Bank A/S also offers products and services in the fields of insurance, mortgages, property, asset management, and leasing.

  • 😢 Exclusion due to ongoing investigation into suspicious money laundering transactions of EUR 200bn at its Estonian office in the years 2007 to 2015; investigation in France 2017, and fine paid as a result of infringement with insufficient control mechanisms to monitor suspicious transactions in Denmark in 2018
  • 😢 P. Møller – Mærsk A/S most important shareholder (> 20%)
  • 😊 Adequate range of sustainable investment products and services
  • 😊 Measures taken to responsibly deal with clients who find it difficult to meet their debt payments

 

Sources:

Danske Bank A/S

Website, ISS-oekom, MSCI ESG, Medien: Spiegel Online, Handelsblatt, DerStandard

Johnson Controls International plc

Website (engl.), Website (dt.), ISS-oekom, MSCI ESG

Gebäudeautomation und -effizienz – Building Efficiency, dezentrale Energieversorgung – Distributed Energy Storage

Epiroc AB

Website (engl.), Website (dt.), ISS-oekom, MSCI ESG

Bohrgeräte – drilling solutions, Lader und Trucks – loaders and trucks, Baggeranbaugeräte – excavator attachments, Bewetterungssysteme – rock reinforcement

 

Legal note:
Prognoses are no reliable indicator for future performance.

DOSSIER

RESPOND TO THE ARTICLE

Senior Research Analyst, Erste Asset Management

Legal disclaimer

This document is an advertisement. Unless indicated otherwise, source: Erste Asset Management GmbH. The language of communication of the sales offices is German and the languages of communication of the Management Company also include English.

The prospectus for UCITS funds (including any amendments) is prepared and published in accordance with the provisions of the InvFG 2011 as amended. Information for Investors pursuant to § 21 AIFMG is prepared for the alternative investment funds (AIF) administered by Erste Asset Management GmbH pursuant to the provisions of the AIFMG in conjunction with the InvFG 2011.

The currently valid versions of the prospectus, the Information for Investors pursuant to § 21 AIFMG, and the key information document can be found on the website www.erste-am.com under “Mandatory publications” and can be obtained free of charge by interested investors at the offices of the Management Company and at the offices of the depositary bank. The exact date of the most recent publication of the prospectus, the languages in which the key information document is available, and any other locations where the documents can be obtained are indicated on the website www.erste-am.com. A summary of the investor rights is available in German and English on the website www.erste-am.com/investor-rights and can also be obtained from the Management Company.

The Management Company can decide to suspend the provisions it has taken for the sale of unit certificates in other countries in accordance with the regulatory requirements.

Note: You are about to purchase a product that may be difficult to understand. We recommend that you read the indicated fund documents before making an investment decision. In addition to the locations listed above, you can obtain these documents free of charge at the offices of the referring Sparkassen bank and the offices of Erste Bank der oesterreichischen Sparkassen AG. You can also access these documents electronically at www.erste-am.com.

N.B.: The performance scenarios listed in the key information document are based on a calculation method that is specified in an EU regulation. The future market development cannot be accurately predicted. The depicted performance scenarios merely present potential earnings, but are based on the earnings in the recent past. The actual earnings may be lower than indicated. Our analyses and conclusions are general in nature and do not take into account the individual characteristics of our investors in terms of earnings, taxation, experience and knowledge, investment objective, financial position, capacity for loss, and risk tolerance.

Please note: Past performance is not a reliable indicator of the future performance of a fund. Investments in securities entail risks in addition to the opportunities presented here. The value of units and their earnings can rise and fall. Changes in exchange rates can also have a positive or negative effect on the value of an investment. For this reason, you may receive less than your originally invested amount when you redeem your units. Persons who are interested in purchasing units in investment funds are advised to read the current fund prospectus(es) and the Information for Investors pursuant to § 21 AIFMG, especially the risk notices they contain, before making an investment decision. If the fund currency is different than the investor’s home currency, changes in the relevant exchange rate can positively or negatively influence the value of the investment and the amount of the costs associated with the fund in the home currency.

We are not permitted to directly or indirectly offer, sell, transfer, or deliver this financial product to natural or legal persons whose place of residence or domicile is located in a country where this is legally prohibited. In this case, we may not provide any product information, either.

Please consult the corresponding information in the fund prospectus and the Information for Investors pursuant to § 21 AIFMG for restrictions on the sale of the fund to American or Russian citizens.

It is expressly noted that this communication does not provide any investment recommendations, but only expresses our current market assessment. Thus, this communication is not a substitute for investment advice, does not take into account the legal regulations aimed at promoting the independence of financial analyses, and is not subject to a prohibition on trading following the distribution of financial analyses.

This document does not represent a sales activity of the Management Company and therefore may not be construed as an offer for the purchase or sale of financial or investment instruments.

Erste Asset Management GmbH is affiliated with the referring Sparkassen banks and Erste Bank.

Please also read the “Information about us and our securities services” published by your bank.

Subject to misprints and errors.

MORE ON THE SUBJECT