Erste Asset Management

The Tower of Babel

The Tower of Babel
The Tower of Babel
Share post:

It is one of the best-known stories from the Bible: Man wants to see eye to eye with God and starts building a tower towards heaven; and God punishes man’s hubris with Babylonian confusion. Bereft of a common language, mankind fails to finish the tower.

The race for the highest building in the world shows that man has learnt little. Tower and hubris still seem to come in tandem. And at least in those properties that want to be sustainable, the Babylonian confusion has survived in the shape of the certification chaos.

What makes properties sustainable? Is it more sustainable to live in a badly insulated building dating from the turn of the 19th century, given that a new construction would cause a bigger environmental burden than the existing energy costs? Does it make sense to invest in insulation if the material ends up as toxic waste down the line? Are triple-glazed windows the solution even if they are more likely to cause mould due to their unfavourable ventilation characteristics?
And how does one measure the sustainability of a building in the first place, given that the term itself is hazy?

Numerous ratings and certificates claim to prove the sustainability of a property. But what do Energy Performance Certificates et al. really measure? And how do such certificates relate to each other? Do they measure the same parameters, or is there a point in combining them?

Property has been one of the most interesting asset classes in Germany, Austria, and Switzerland in the past years both in terms of return and demand, coining the German idiom “Betongold” (“concrete gold”). Sustainable investors were largely excluded, which is one reason why we decided to have a closer look at the terra incognita of sustainable property. We would like to invite you, Ladies and Gentlemen, to join us on this expedition. Maybe we can contribute a little to do away with the Babylonian confusion, paving the way for the construction of a sustainable property portfolio.

Read more about sustainable buildings in our magazine ERSTE RESPONSIBLE RETURN – The ESG-Letter


Legal disclaimer

This document is an advertisement. Unless indicated otherwise, source: Erste Asset Management GmbH. Our languages of communication are German and English.

The prospectus for UCITS (including any amendments) is published in accordance with the provisions of the InvFG 2011 in the currently amended version. 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 connection with the InvFG 2011. The fund prospectus, Information for Investors pursuant to § 21 AIFMG, and the Key Information Document can be viewed in their latest versions at the web site within the section mandatory publications or obtained in their latest versions free of charge from the domicile of the management company and the domicile of the custodian bank. The exact date of the most recent publication of the fund prospectus, the languages in which the Key Information Document is available, and any additional locations where the documents can be obtained can be viewed on the web site A summary of investor rights is available in German and English on the website as well as at the domicile of the management company.

The management company can decide to revoke the arrangements it has made for the distribution of unit certificates abroad, taking into account the regulatory requirements.

Detailed information on the risks potentially associated with the investment can be found in the fund prospectus or Information for investors pursuant to § 21 AIFMG of the respective fund. If the fund currency is a currency other than the investor's home currency, changes in the corresponding exchange rate may have a positive or negative impact on the value of his investment and the amount of the costs incurred in the fund - converted into his home currency.

Our analyses and conclusions are general in nature and do not take into account the individual needs of our investors in terms of earnings, taxation, and risk appetite. Past performance is not a reliable indicator of the future performance of a fund.

Leave a comment Required fields are marked with *

Your email address will not be published. Required fields are marked *