ESG products

ico grafico
 

We have decided to move towards a sustainable and responsible approach to investing, or rather, an investment strategy which is geared to medium and long term and which, in assessing businesses and institutions, complements financial analysis with consideration of environmental, social and governance criteria, with a view to creating value for the investor and for society as a whole.

To construct our ESG products, we pursue particularly stringent investment criteria with reference in particular to the environment, then to human and gender rights, and thirdly, to corporate governance practices. The ESG fund portfolios pay close attention to phenomena and risks linked to climate change, control of CO2 emissions, deforestation, transformation of global energy processes, but also the employment conditions of workers worldwide, discrimination on the basis of gender, and the conduct of companies’ senior management relative to the laws and codes of conduct in force.

Within the Group, Mediobanca SGR offers the possibility of investing in Mediobanca Social Impact, an ESG fund for philanthropic purposes, which has been developed in partnership with some of the leading Italian charitable institutions.

Outside of Italy, RAM Active Investments, the leading European systemic asset manager recently acquired by Mediobanca (with a 69% stake), integrates corporate social responsibility into every aspect of its business, including managing investment portfolios.

As an institutional investor, RAM acts in the best long-term interests of its beneficiaries, and assists its clients to leverage the potential of markets to achieve their own targets in terms of ESG impact. Environmental, social and governance (ESG) issues are incorporated into their analysis and investment decision-making processes. In September 2015 RAM Active Investments became a signatory to the United Nation’s Principles for Responsible Investment.

In 2018, Compagnie Monégasque de Banque launched an ESG Management Mandate for investing in firms and countries which contribute to the development and future of society and are committed to building a better world.

The ESG Management Mandate is based on selecting investment vehicles which meet ESG values using a “best in class” approach.

 

MEDIOBANCA SOCIAL IMPACT

The Mediobanca Social Impact is a balanced bond fund which combines the growth opportunities offered by the stock markets with investment selection criteria which pursue sustainable growth objectives from an environmental, social and governance perspective (ESG).

Since 1 April 2018 the Mediobanca Social Impact has included ESG-compliant indicators in its regulations, with certification by E. Capital Partners, an independent consultancy with specialization in ethical finance.

It is also a fund which invests for philanthropic purposes, structured in such a way as to ensure each beneficiary has a recurrent flow of income over time, thus enabling investors to support them on an ongoing basis, by investing in a financial product with a low risk level and daily liquidity.

The philanthropic quality of Mediobanca Social Impact consists of the significantly lower management fees compared to the reference market average. This is what allows Mediobanca SGR to withdraw capital from the Fund for the benefit of the recipients without passing on the cost to the investor. The distribution of a share in the equity throughout the product’s duration, allows the beneficiaries to plan activities and projects.

List of beneficiaries adhering to the fund (updated to 1 January 2018):

Category

Education and training

Name of entity

Fondazione Cometa

Fondazione FAI – Fondo Ambiente Italiano

Fondazione S. Ambrogio per la Cultura Cristiana

Fondazione Accademia Teatro alla Scala

 

 

Health and scientific research

Comitato Maria Letizia Verga

Fondazione Humanitas per la ricerca

Centro Dino Ferrari

Fondazione dell’ospedale pediatrico Anna Meyer Onlus

 

 

Social and charitable activities

Fondazione San Patrignano Onlus

Fondazione Banco Alimentare Onlus

Fondazione Floriani

Co-operation in development and humanitarian initiatives

Fondazione Amref Health Africa Onlus

Fondazione Mission Bambini Onlus

Fondazione AVSI Onlus-Ong

UNICEF

COMPAGNIE MONÉGASQUE DE BANQUE – ESG MANDATE

Environmental, Social and Governance

Mindful of the Environmental, Social and Governance values, CMB has launched its ESG Mandate.

This mandate invests in companies/countries that contribute to the development and the future of our society and are committed to build a better world.

Environment

Contribute to the preservation of our planet for future generations, regarding, among others:

  • Greenhouse gas emissions
  • Prevention of environmental risk
  • Impoverimento delle risorse naturali

Social

Participate in the development of the economy, notably through:

  • Financing microfinance vehicles
  • Financing associations that contribute to the economy
  • Achieving philanthropic activities

Governance

Enhance employee satisfaction by:

  • Improving working conditions
  • Developing career and training plans
  • Promoting the quality of internal and external relations
  • Respecting equal opportunities

Investment approach

  • CMB offers a personalized discretionary mandate that relies on the selection of investment vehicles corresponding to ESG values, with a Best in Class" approach (no exclusion)
  • The management team has developed an internal ESG score, applicable to government institutions and public listed companies, based on the following criteria:
 

Government institutions

  • Environmental health, social protection, gender equality, fight against corruption, fiscal transparency, guarantees of fundamental freedoms, promotion of education

Public listed companies

 

  • Sector-specific criteria Transparency (standardized periodic data), completeness of published data
 
  • The key elements of the management philosophy developed in all CMB mandates for almost 20 years is then applied to the universe of the best ESG score securities
  • The ESG mandate maintains a strong level of diversification, in terms of asset classes and sectors, and offers an attractive return potential

Characteristics of a balanced ESG mandate1

 

Bond component:

Equity component:

 

Selection of a minimum of 12 bonds (Government, corporate, Green/social bonds)

Componente obbligazionaria

Selection of 25 stocks (Starting universe of 2000 global stocks)

Componente azionaria
 

1 ESG score: from 0% to 100% (0% being the highest score)
Link: http://www.cmb.mc/uploads/downloads/2-11-mandat-esg-gb.pdf  

 
 
 

Last update: 03/07/2018