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Our sustainable investment universe offers access to equities and bonds of companies who fulfill certain standards with respect to ecological, social and corporate governance standards. We chose suitable ETF (exchange-traded funds) who base their investment selections on three pillars: environment, social and corporate governance (ESG)
Environment. Companies who have a negative impact on the environment are excluded, by taking the following factors into account: CO2 emissions and climate change, commodities usage, water, bio diversity, pollution, clean-tech and renewable energy aspects.
Social. Companies with a negative social impacts are excluded, considering the following factors: health and safety environment, health protection and development opportunities for employees, product security and quality, data protection, demographical risks, child labor and controversial sourcing. In addition, opportunities of a companies with respect to health, nutritiion and micro-finance are considered.
Governance. Leadership diversity, wages, company control and ownership, accounting. Further factors are transparent taxation, avoidance of corruption, financial stability and ethical aspects of its operations. Certain companies who do not conform with international norms and treaties are excluded: human rights, labor rights, ensurance of standards along the value chain.
The ETF we use for equity investments invest exclusively in companies whose ESG profiles belong to the top 25% in their markets. Excluded on principle are companies whose business model is based significantly on controversial goods: military weapons, firearms, nuclear energy, alcohol, genetically modified organisms (GMO), gambling, tobacco, and adult entertainment.
Costs. Our selected ETF are slightly more expensive than their traditional counterparts. Our wealth management fee is unchanged and remains at 0.50% per year. With its sustainable investment universe, True Wealth offers investors a customizable and sustainable investment portfolio without compromising on costs and gains potential.
Investments in companies with a sustainable profile are weighted according to their market capitalization, with the objective of matching the performance of traditional equity indexes. In historical retrospective, many sustainable indexes beat their traditional counterparts in the period between September 2014 and August 2018. However, there will be periods with the contrary outcome.
Historical evolution is not an indicator for future performance.
Source: Bloomberg, MSCI, True Wealth AG, end of August 2018
In your customer area, you can switch between a traditional (global) investment universe and a sustainable investment universe: click on the link above the investment mix. You can easily assess the impact on product costs and liquidity of your portfolio. If you have no True Wealth account yet, test us by opening a virtual test account!
You can easily customize your investment strategy in the sustainable investment universe. As usual, we do not charge any extra fee for changing between universes. Please consider however that changes in your allocation may reduce your performance due to trading spreads.