To earn money, not everything is long for a growing number of investors. You want with their investments also contribute to the respect for human rights or the protection of the environment.
So, it’s no wonder that experts see the segment for sustainable and ethically-oriented Fund as a growth market. Sustainability is however quite different approaches behind the slogan.
Ethical and ecological criteria an important role in an increasing number of industries”, says Gabriele Glahn Nüssel, spokeswoman for the Nuremberg environmental Bank. Been initiated the discussion on alternative investments in Germany was mid-1980s by opponents of racial segregation in South Africa. With the slogan “No money for the apartheid” they called for a boycott of banks.
One of the pioneers in the meantime managed 362 million
When the first ‘ethical’ investment products were launched, were issues such as nuclear power and armor in focus, investors wanted to put a penny in the.
Meanwhile, the range has expanded as the international equity fund eco vision shows one of the pioneers in the market, which went on the market in 1996. His exclusion criteria: “Nuclear industry, chlorine chemistry, genetic engineering, depletion, animal testing, military, discrimination and child labour”. Eco vision now has a volume of EUR 362 million.
“Value-oriented investment sets too”
The demand ethical Fund. “This is a dynamic market”, says Antje snow white from the Institute South wind of Siegburg and author of the “Kursbuch ethical investment”.
Andreas Knörzer from the Swiss Bank Sarasin, which considers itself as a pioneer in the market of ethics, confirmed that: “Value investment gains.” The growth is driven white as the environment Bank by private investors, but also by foundations, pension funds and the churches.
The market volume is difficult to determine. The distinction is the problem. The Association counts 80 sustainable investing public funds put in which 3.8 billion euro capital investment and asset management (BVI) for Germany. South wind and the environment Bank, however, calculate an investment volume of EUR 13 billion for 116 ethical and sustainable investment products. The BVI € 1.2 trillion estimated the German fund market.
So stretchy, the notion of sustainability is the spectrum of the selection criteria by fund managers. So ecologically oriented investors at the “DWS future resources” – with a volume of half a billion euros of one of the largest sustainability funds in Germany – open, that he invested Canadian gene-seed producer Monsanto to.
“Best in Class” approach
The “sustainable vision equity fund” by Metzler excludes only companies, more than 10 percent of their turnover approximately achieve with nuclear plants, pornographic products or tobacco.
Others at least certain industries are completely closed, these funds have a “best in class”-approach. Investing is in the respective ecological company of an industry – even if the industry as a whole belong to the environmental sinners, environmental Bank spokeswoman Glahn Nüssel criticized.
“Ethical considerations restrict investment policy”
Ethical systems, the fund companies – in addition to the values of the customer – need to have the very traditional criteria of profitability and safety in mind. “Ethical and sustainable products do not automatically have a yield disadvantage,” says Helge Wulsdorf by the Bank for Church and Caritas in Paderborn, offering many such financial products.
Thomas Richter from the German market leader DWS looks in the alternative products a compromise: “can the invest their money not on all sides top results be achieved. Taking into account ethical considerations restrict the investment policy, what can lead to loss of the yield compared with products which are not subject to such a restriction.”
southwind medical specialists
Investors have to this point most clearly running out. The smaller spectrum causes that the hands are tied the Fund managers what can in fact have a lower return result. This is true at least for such funds, which carry the additional “Eco” or “Ethics” on behalf of cope.
The eco vision has suspended an average value increase from 7.8 percent in the year since 1996 while each Festgeldanlage, MSCI World lagged the benchmark index but, in the same period a plus of 9.75 percent on average managed. Concealed that will not cut off may not, however, that there are many other funds, eighth and far worse on sustainability.