This strategy is intended for sustainable investors who want a concentrated European equity portfolio, free from companies that are harmful to or do not contribute to a sustainable world.
Sustainability creates value
Long-term financial stability requires sustainability. After all, a company primarily exists because it takes good care of the environment that enables its existence. By investing in sustainable companies and those in transition, our investors can benefit from favourable market trends and reduce risks.
Resilient business models stimulate growth
A resilient and flexible company can effectively deal with uncertainties and adapt to sustainability challenges. This is an important foundation for sustained growth. We select stable companies with solid foundations and limited uncertainties for our investors.
Sustainability creates value
Long-term financial stability requires sustainability. After all, a company primarily exists because it takes good care of the environment that enables its existence. By investing in sustainable companies and those in transition, our investors can benefit from favourable market trends and reduce risks.
Resilient business models stimulate growth
A resilient and flexible company can effectively deal with uncertainties and adapt to sustainability challenges. This is an important foundation for sustained growth. We select stable companies with solid foundations and limited uncertainties for our investors.
Stewardship promotes sustainability
Engaging in conversations with company management about financial and sustainability goals and results, as well as voting at shareholder meetings, ensures that companies are guided towards both financial prosperity and sustainable success. On behalf of our investors, we actively engage with the companies in which we invest.
Behaviour and biases in the market offer investment opportunities
The market often exhibits tendencies towards overreaction and mispricing of risks. Being aware of these tendencies and recognizing them in a timely manner can translate into advantages for our investors.
Stewardship promotes sustainability
Engaging in conversations with company management about financial and sustainability goals and results, as well as voting at shareholder meetings, ensures that companies are guided towards both financial prosperity and sustainable success. On behalf of our investors, we actively engage with the companies in which we invest.
Behaviour and biases in the market offer investment opportunities
The market often exhibits tendencies towards overreaction and mispricing of risks. Being aware of these tendencies and recognizing them in a timely manner can translate into advantages for our investors.
Our approach
Negative selection
We start from the universe of MSCI Europe.
We identify companies that violate international standards and are involved in activities deemed too harmful to society and exclude them.
We assess the capacity and willingness of the remaining companies to adapt with the aim of contributing to the transition towards a sustainable society.
We filter based on liquidity and size because we seek companies that add meaningful value to returns and to the transition.
Positive selection
Then we apply our positive sustainability screening, focusing on selecting companies that can benefit from sustainability trends.
We select the best companies based on profit growth, price appreciation, financial health, and attractive valuation.
Fundamental analysis and portfolio construction
We analyze the attractiveness of the industries in which these companies operate, as well as their robustness, competitiveness, and valuation. Additionally, we create scenarios for the factors influencing that valuation.
Tenslotte stellen we een portefeuille samen die zonder onnodige risico’s sterke prestaties kan laten zien op het gebied van duurzaamheid en financieel rendement.
Teams & Tools
The strategy is managed by dedicated European specialists in sustainable equities within our Cardano organization, which is fully dedicated to sustainable investing and promoting the transition to a sustainable world. These specialists are integrated into the investment team consisting of 79 investment professionals and the equity team consisting of 11 professionals. The active equity specialists (8 FTE) closely collaborate with the EUR Investment Grade Credit Team (9 FTE) and together form the fundamental investment team. Additionally, they collaborate with the quantitative team (9 FTE), top-down research teams (15 FTE), and the ESG team (25 FTE). The ESG team plays an integral role in the investment process of the strategy.
To support optimal decision-making regarding whether a company fits into the portfolio, the team utilizes Cardano’s innovative tools. For example, our geo-spatial data instrument is used to identify physical climate risks for the production locations of each (potential) company in the portfolio. These data provide insights into the potential risk of significant financial costs due to climate change. We combine these analyses with published management reports, policy measures, and other identified risks. This adds an additional dimension to our qualitative assessments of companies, contributing to determining whether companies are adapting to the sustainable transition or not.
Teams & Tools
The strategy is managed by dedicated European specialists in sustainable equities within our Cardano organization, which is fully dedicated to sustainable investing and promoting the transition to a sustainable world. These specialists are integrated into the investment team consisting of 79 investment professionals and the equity team consisting of 11 professionals. The active equity specialists (8 FTE) closely collaborate with the EUR Investment Grade Credit Team (9 FTE) and together form the fundamental investment team. Additionally, they collaborate with the quantitative team (9 FTE), top-down research teams (15 FTE), and the ESG team (25 FTE). The ESG team plays an integral role in the investment process of the strategy.
To support optimal decision-making regarding whether a company fits into the portfolio, the team utilizes Cardano’s innovative tools. For example, our geo-spatial data instrument is used to identify physical climate risks for the production locations of each (potential) company in the portfolio. These data provide insights into the potential risk of significant financial costs due to climate change. We combine these analyses with published management reports, policy measures, and other identified risks. This adds an additional dimension to our qualitative assessments of companies, contributing to determining whether companies are adapting to the sustainable transition or not.
Attributes
Trackrecord
This has been a core strategy of Cardano for almost 20 years
Stable team
Experienced team, diverse European cultures, low turnover
Results
Strong sustainability and financial performance since inception
Transition
Designed for and measurably contributes to the transition to a sustainable world
