Linking a foundation's purpose to the investment activity
May 2017
The focus of foundations should be that their objectives are not undermined by any investment activity as this might annul any effect; so a foundation's purpose should be aligned with and supported by selective as well as purposeful investments. Nevertheless and especially in this low-interest-rate environment, foundations also face the challenge of generating attractive returns. But specifically this environment also makes it relevant for all foundations to apply a sustainable perspective and engange in relation to their investments.
Measuring the social footprint of the foundations capital is possible. The focus is on identifying the so-called environmental, social and governance (ESG) criteria. Each company in a portfolio is linked to a set of sustainability specifications. Based on this, foundations can easily create a dedicated "ESG foundation check" taking their specific requirements and specification into account. By doing so, companies with involvement in a range of products and business activities that might be subject to investment restrictions can be identified.
Transparency is the first step. Therefore we are proud to announce the release of the first ESG-Compass for foundations; this study has been specifically compiled taking the foundations perspectives into account. The research takes a closer at 45 endowment funds that are marketed (and sold) to foundations in Germany.
To independently compare and in order to efficiently score those mutual funds, the powerful “ESG Analytics Tool” of yourSRI.com has been used.
The key facts:
- 89% of all screened funds are rated "A" or higher
- the average ESG-score is 64.0
- 57% of these funds are globally invested
- the average 3-year perforrmance is 4.11%
Together with our partners we endeavour to promote and raise awareness concerning trends and issues in the field of responsible investing, aiming for greater transparency, comparability and measurability. And that's exactly the aim of this publication.
is now available. Please see below to access the reports.
(Please note: The Full Report is only available in German)
To access or download a .pdf-version of this document, please click here (6MB) for German.
If you would like to rate and know the social and environmental quality of your portfolio, feel free to use your complimentary Portfolio Quick-Check.
if you have any further questions, please do not hesitate to contact us.
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