24/05/2019 - Funds: DJE - Zins & Dividende, ESG - Prinzipien
Sustainability as a matter of principle
As a balanced mixed fund the DJE - Zins & Dividende is equally at home in the asset classes equities (max. 50%) and bonds and mixes them regardless from index specifications. In line with the absolute-return principle it aims to achieve sustained positive performance in every market phase.
For many years now Dr. Jan Ehrhardt has been taking the idea of conscientious and sustainable investment seriously with a view to human rights and environmental standards. Moreover, the management of the DJE - Zins & Dividende has never considered companies that produce ABC weapons, cluster bombs or landmines or whose turnover from the production of conventional weapons exceeds five percent.
Since then, DJE has significantly expanded and institutionalized its exclusion criteria. As a signatory to the United Nations Principles for Responsible Investment (PRI), DJE ensures that companies selected for a fund portfolio operate and produce in an environmentally responsible manner, respect human rights, observe labour standards and fight corruption. If a company grossly violates these ESG principles it is out of question for DJE.
This is of double importance for the DJE - Zins & Dividende. The balanced mixed fund strives for a positive performance with as little fluctuation as possible in every market phase. ESG risks can jeopardize this goal just as much as general equity market or credit risks. When corruption scandals or environmental damage occur the share price of the companies causing the damage quickly falls to its knees. In addition ESG issues are much more in the public focus today and business models are competing with each other. It is therefore to be expected that demand for less CO2-intensive technologies will increase. As a result companies with less attractive models can expect valuation discounts and falling share prices and on the bond side they have to grant higher coupons to finance themselves.
In order to avoid these risks as far as possible DJE is working with the independent data provider MSCI to screen the investment universe according to ESG criteria. In addition the strengths and weaknesses of sustainability factors and the potential of green technology are identified and compared with the competition. This benefits the DJE - Zins & Dividende as well as all other DJE funds.
Note: All information published is for your information only and does not constitute investment advice or other recommendation. Long-term experience and awards do not guarantee investment success. Securities are subject to market-related price fluctuations which may not be compensated for by the active management of the asset manager or investment advisor. This information cannot replace a personal consultation. All information has been provided with care and to the best of our knowledge at the time of preparation. Despite all due care the data may have changed in the meantime. Further information on opportunities and risks can be found on the website www.dje.de. The sales prospectus and further information are available free of charge in German from DJE Investment S.A. or at www.dje.de The fund management company is DJE Investment S.A. DJE Kapital AG is the distribution agent.