Proprietary, quantitative sustainability-model for government bonds.
The model ranks emerging countries according to several comparable criteria from reliable sources. It includes progress made over time and considers criteria in five areas: i.e. transparency & democratic values, economics, environment, education & innovation and population health & wealth distribution.
Normative screening: compliance with the UN Global Compact.
Best-in-class approach: Investing min. 40% of AuM in the top quartile and max. 10% in the bottom quartile. Countries classified as “not free” and “authoritarian” are excluded from the fund.
- High-conviction, active portfolio-management approach without benchmarking constraints.
- Investing worldwide in government and supranational bonds from emerging countries, with a focus on local currencies (max. 30% hard currency) and without following minimum rating requirements (max. 30% non-rated).
- In-house fundamental analysis of market liquidity, relative valuation as well as economic, political, interest-rate and financial-health outlook. The fund will invest in a well-diversified, set of 25-30 countries (+/- 70 bonds) backed by strong risk management.
Sustainability country ranking report - October 2019