How it all started
For Baloise, sustainable business is about creating value for our stakeholder groups and, as a result, for our own business, too. Decisions are made on the basis of the impact that they have on society, the environment, employees, customers, partners and investors.
The investment in a more sustainable economy is a way to change things. We should at least try to mitigate the outcome, what previous generations have failed to do, for us, for our children, for the all the coming generations.
On a different note, we all know some persons, especially in our business, which are difficult to convince that performance and cash back aren’t the only results that can be expected. Based on the shift in society and investment needs, now backed up by studies and performance, even these “sceptics” should have been convinced that the current model is not enough anymore: the investor wants to know where his money goes.
ESG criteria* and responsible investment are the heart of stability, inclusive economic future along with governments and regulators can be reached by redistributing fairly where the impact is visible.
Bâloise Vie Luxembourg started the reflection process with: what kind of product we would like to build? We wanted it to be clear and transparent on the investment level.
We searched for possibilities within different areas, and as the investment fund industry was a bit ahead with the integration of climate related issues into their investment consideration, we decided to go in this direction.
We’ve contacted several asset managers, who had adapted those considerations in their broader business model, and went to trough a request for information phase.
We gave them our specifications, in what we would like to invest and more precisely, what we did not want; in addition to some technical points e.g. the depository bank being on European ground. This lead to the definition of our exclusion criteria’s.
The selected asset managers came back to us, with different type of projects e.g funds lists, creation of a dedicated investment universe. For us then to choose and analyse if the propositions made were fitting. Furthermore we went to a due diligence process, by checking the components and underlying of the given projects.
Hurdle to clear
During that part a big concern came up, on the applied methodology used to structure the investment universe. We wanted to find a partner that would be in position to give examples of how he dealt with difficult cases, for example where he chose not to follow a published ESG rating, and discuss companies in depth that are on the borderline for inclusion/exclusion in their portfolio.
We found in the now chosen partner an ally and real answers to our questions and concerns.
He was willing to give us transparency on all their reports, explain us the methodology used and even discuss some of the investment choices, and why he decided to keep investing in a company whose predilected area, at first glance, is negatively connoted.
We went through the investment process decision that has been taken and received technically-based information why the company was kept as an investment: to foster and accompany change.
Some weeks after that, this same company we are talking about, went public by announcing its target to get to Net Zero emissions for its global business by 2050.
We wanted to create investment vehicles which would easily be understandable and be coherent with our existing structure.
For this reason we chose the form of Internal Collective Funds. Those funds have been tailored to our needs by answering to our expectations and requirements. We delegated their investment management to a specialist in his field.
This is how we initiated the launch of 5 Internal Collective Funds which have their pendant to five investor profiles.
By doing so it allows us to cover all the type of investor from the more considerate who is no willing to take any risks to the more investment literate investor, who’s more acquainted to the market and who is ready to face more risk on his investment.
It can be seen as building bricks that fit perfectly together, one investor profile for one fund.
Our sustainable investment offer
Please welcome our 5 funds with ESG emphasis:
- Bâloise Eticx Conservative
- Bâloise Eticx Defensive
- Bâloise Eticx Balanced
- Bâloise Eticx Dynamic
- Bâloise Eticx Aggressive
Would you like to know more about the different internal funds? Find all the information here.
* ESG: Environmental, Social and Governance - these are the analytical criteria used to assess how sustainable development and long-term issues are taken into account in corporate strategy.