The new Eurizon Fund – Sustainable Multiasset is a fund that invests globally in equities and bonds selected using in-house ESG criteria and considers the United Nations Sustainable Development Goals (UN SDGs). The investment strategy is based on three pillars – Core, Tactical and Hedging, with Core representing the core portfolio of longer-term strategies, reflecting the view of the company. The tactical component has a shorter-term focus and uses derivative instruments, for example, to improve the portfolio’s risk-return profile. Finally, the hedging component includes strategies to hedge risks arising from exposure to all markets, using derivatives or assets that are not correlated to portfolio risks.
“The Eurizon Fund – Sustainable Multiasset is designed for investors seeking an attractive investment solution that combines Eurizon’s ESG expertise in equities and bonds with its dynamic asset allocation expertise and experience,” explains Howard Luder, Country Head for Germany and Austria at Eurizon. “For example, the fund managers focus on companies with solid fundamentals and good profitability as well as a high sustainability score,” Luder continues. “Evidence shows that companies that follow ESG criteria perform stronger over time and offer a competitive advantage in the long term.” He adds that a similar pattern can be observed in bonds: “Particularly in high-yield issues, bonds associated with sound ESG practices outperformed their peers.”
The fund’s equity allocation may range from 25 to 75 percent of the portfolio, and its bond allocation is unlimited, with managers having access to green bonds, ESG high-yield corporate bonds and eurozone government bonds. Exposure to currencies outside the euro is a maximum of 50 percent, as is the proportion of bonds rated below investment grade. The proportion of emerging-market bonds is in turn limited to 30 percent. On the other hand, commodity investments may account for up to 10 percent of the portfolio.
“Great importance is attached by the fund managers to active ownership,” Luder explains further. “This means that they not only actively manage the portfolio, but also proactively exercise shareholder rights – in which they engage in effective dialogue with the management of the companies in which they invest, and also conscientiously exercise voting rights at shareholder meetings.”
Eurizon itself has been in the market with ethical products since 1996 and now represents 25 years of responsible engagement.
In total, Eurizon currently manages 157 sustainable and responsible funds classified by the SFDR Regulation under Article 8 and Article 9 with an assets under management of almost 100 billion euros (as at 1st July 2021).
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