Etica Obiettivo Sociale: the new mutual fund by Etica Funds

Etica Obiettivo Sociale: the new active management investment solution [1] offered by Etica Funds is made for investing in an economy that takes into consideration dignity at work, human rights, workers’ rights, social cohesion and social justice.

It is a Balanced Bond Fund[2] (maximum investment in shares up to 45% of the portfolio) designed for investors who want to seize the opportunities of the international stock markets by balancing them with a solid bond base, with respect for environmental, social and governance (ESG) criteria.

The fund is available in class R (accumulation of profits), class RD (distribution of profits) and class I (for institutional investors).

Etica Obiettivo Sociale has a particular focus on topics linked to work, society and corporate governance, and offers products and services with a positive social impact, in particular for corporate issuers. The “Securities Selection” page describes the methodology for choosing the stock and bond issuers in which Etica Obiettivo Sociale invests.

The Fund is classified pursuant to art.9 of Regulation (EU) 2019/2088[3].

Why we are offering a fund focused on social impact

There is no doubt as to the importance of the environmental topic, but nor can we overlook the social aspect, with its innumerable implications for human rights, work, fairness and justice. As a responsible investor, Etica pursues a sustainable development balanced between environment and social aspects, capable of avoiding particular injustices in order to pursue global goals.

The importance of the social aspect in the responsible approach

The importance of the social aspect in the responsible approach

Various studies[4],[5] have shown that investing in forward-looking companies with a social focus, which implement inclusive projects, respect workers’ rights, are mindful of recognising and developing diversity, as well as sharing with the local communities where they operate, are also good for the portfolio in the long term.

Following the health emergency (which then became an economic and social emergency), it is now time to rebuild. We must all play our part, including institutions, companies, the world of finance and individual citizens. Social topics such as human rights, work, fairness and justice will have more and more impact on our lives, with repercussions also on investments.

Etica Obiettivo Sociale

The role of ethical finance

The importance of social aspects, including in investments, is in the very DNA of Etica. The “S” in ESG has always been present, we treat it the same way we do governance and environment, in spite of it being a complex area. The social factor in our issuer analyses is assessed through the focus on topics such as gender equality, forced labour and fair pay (including along the supply chain). Furthermore, we speak to top managers and vote at the shareholders’ meetings of companies to encourage them towards adopting sustainable behaviours from a social perspective. Finally, the Paris Agreement in 2015 introduced a specific principle: the transition towards a sustainable development model must of course be green, but it must also be fair, namely it looks at the impact on communities and workers.

Just Transition

The road we have decided to take is that of the Just Transition. An approach developed by the trade union movement to cover a series of interventions needed to guarantee social rights and the living conditions of workers while the economies are moving towards greener sustainable production.

As a responsible investor, Etica pursues a sustainable development balanced between environment and social aspects.

Notes and references

[1] Open-ended mutual investment fund established by Etica
[2] Assogestioni category
[3] The sustainability objective of the Fund, according to the provisions of art. 9 of Regulation (EU) 2019/2088, is structured in terms of respect for the minimum percentage of portfolio invested in securities of corporate issuers, governments, AIFs or social bonds that meet the criteria defined by the investment policy described in the Fund Prospectus. Read more about the methods used to assess, measure and monitor the environmental and social characteristics or the impact of sustainable investments in the section: Responsible Investment.

[4] ESG and cost of capital
[5] Refinitiv Diversity & Inclusion Total Return Index

This is a marketing communication by Etica Sgr S.p.A.
Investors should conclude an investment transaction involving Etica Obiettivo Sociale Fund only after having fully understood their overall characteristics and degree ofexposure to related risks, by carefully reading the Prospectus and the key investor information document (KIID), which, together with information on sustainability pursuant to Regulation (EU) 2019/2088, can be found at The investment specifically concerns the acquisition of shares relative to the fund and involves risks related to possible changes in the share values, which are in turn affected by fluctuations in the value of the financial instruments in which the funds’ resources are invested. Investing in the Etica Obiettivo Sociale Fund offers no guarantee of return and does not ensure repayment of initially invested capital. Any future returns are subject to taxation, which is based on the personal situation of each investor and may change in the future. The investment goals, situation and financial needs of potential recipients have not been taken into account in the drafting of this communication. It can therefore in no way be interpreted as investment advice. The recipients of this communication assume full and absolute responsibility for the use of the information it contains, as well as for any investment decisions made on the basis thereof, since any use of the information as support for investment decisions is not permitted and is at the investor’s own risk.

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