The selection process of the “Valori Responsabili” Line and Sicav sub-funds[1]. The methodology selects businesses and countries that adopt responsible ESG (environment, social and governance) practices, adopting a global approach to topics and sectors.
Negative selection
We exclude the oil and mineral extraction sectors and it is suspended the financial sector i.e. investment companies, insurance industry and banking industry, except for banks defined as “sustainable” by their history and their activities.
We avoid securities issued by countries that have the death penalty or that do not respect civil and press freedom and political rights.
We say NO to investments in weapons, tobacco, gambling, nuclear energy, pesticides and genetic engineering. We also exclude companies involved in negative practices in terms of corruption, environmental protection and employment rights.
Anti-personnel mines and cluster munitions: Law 220/2021
It should be noted that, with regard to the controversial weapons sector—and more specifically, anti-personnel mines and cluster munitions and submunitions—Etica Sgr has always excluded from its investments any companies involved in the design, development, production, use, maintenance, distribution, storage, transport, or sale of such weapons or their key components. This exclusion is based on information provided by ESG data providers, publicly available lists (such as those compiled by NGOs specializing in the subject), and is implemented through appropriate procedural safeguards aimed at preventing the financing of such companies, in accordance with the provisions of Law 220/2021[2]. The public lists consulted by the Sgr are approved from time to time by the Board of Directors of Etica Sgr, after consultation with the Ethics Committee.
Positive selection
We say YES to opportunities to invest in socially and environmentally responsible countries and businesses with the greatest focus on sustainability and collective wellbeing. Consequently, issuers that make it through the first round of the selection process are analysed in more detail and assessed according to environmental, social and governance criteria. Each issuer is assigned an overall score based on an assessment of over 700 indicators for companies and over 80 for countries.
Only issuers with scores higher than an absolute threshold and which are the best in their sector (“best-in-class” approach) go on to become part of the Investable Universe of the Line’s funds.
[1] Three SICAV funds of the Luxembourg MULTILABEL SICAV, consisting of Carne Global Fund Managers (Luxembourg) S.A., on behalf of Etica Sgr S.p.A, which is the investment manager and global distributor.
[2] and the subsequent “Instructions from the Bank of Italy, Covip, Ivass, and the Ministry of Economy and Finance (MEF) for the implementation of enhanced controls on the activities of Authorized Intermediaries to prevent the financing of companies involved in the production of anti-personnel mines and cluster munitions and submunitions.”
This is a marketing communication. The data and information contained herein are provided for information purposes only and do not constitute investment recommendations. This communication is not, and may not be regarded as, an information document required under applicable legislation, and its content is not sufficient to form the basis of an investment decision.
This communication does not take into account in any way the characteristics of any person who may receive or become aware of it. In particular, it does not take into account their investment objectives, knowledge and experience in investment matters, risk appetite and/or any other characteristics, including the applicable tax regime.
Past performance is not indicative of future results, and investments in funds are subject to risks relating to the underlying assets, which may affect the value of the relevant units. Etica SGR provides no guarantee of returns and does not guarantee the repayment of the capital invested. The SGR accepts no liability for any losses that may arise from the use of the information provided in this communication.
In order to make an informed investment decision, before making any final investment decision, investors should consult the Key Information Document (KID) and the funds’ Prospectus available at www.eticasgr.com.
The placement of the “Linea Valori Responsabili” and “Linea Futuri Responsabili” funds is only available in Italy. For further information, please refer to the Italian version of the website.