Selection of securities

We select the equities and bonds in which our funds invest through a rigorous two-stage analysis process.

Selection of securities

The process

The defining characteristic of our mutual funds is the scrupulous screening of the securities. The concept of sustainable and responsible investing is grounded on the exclusive choice of issuers that demonstrate their sustainability not only financially, but also in terms of social and environmental factors and good governance.

The selection process involves two phases: ESG Analysis and financial analysis.

The screening methods

The screening methods are decided by our Board of Directors, which also sets out the Investment Policy, and the entire process is overseen by an external independent Ethics Committee, made up of individuals known for their ethical principles and acknowledged experience in questions of social responsibility.

ESG analysis

Our ESG Analysis and Research Team made up of expert analysts in Environmental, Social and Governance issues, submits all countries and companies to a double screening to identify the countries that best align with social and environmental objectives and the companies most sensitive to sustainability issues and the well-being of the collective, creating the so-called Investable Universe of issuers.

The source of information on Countries and firms

The work of our ESG Analysis and Research Team is broadened by in-depth investigations depending on the particular contingencies of daily events.
We base our evaluation of the issuers on a plurality of sources: specialized databases containing reliable and up-to-date information; associated partners such as the ICCR (Interfaith Center on Corporate Responsibility), PRI  (Principles for Responsible Investments), CDP  (Carbon Disclosure Project), EUROSIF (European Social Investment Forum) and SfC (Shareholders for Change); NGOs such as Amnesty International and Legambiente; in addition, we examine research studies in the specialist press and the company’s corporate publications (financial statements, sustainability reports, etc.) and we evaluate the information gleaned from direct dialogue with the companies.

Financial analysis

The final choice of the securities for our sustainable and responsible funds, following ESG analysis, depends on financial analysis.  The asset manager Anima Sgr, an independent asset management company, evaluates the financial performance and within the Investable Universes defined by Etica, selects the securities with the best risk/return ratio, in line with the Investment Policy defined by the Etica Investments Committee and approved by the Board of Directors.

 

Before subscribing, please read the KIIDs and Prospectus available from placing agents.

The placement of the “Linea Valori Responsabili” and “Linea Futuri Sostenibili” funds is only available in Italy. For further information, please refer to the Italian version of the website.