Private Investors

Quality and sustainability

The basis for the stock selection in Bantleon Changing World is a universe of around 1,200 companies from the areas of renewable energies, infrastructure, smart cities and mobility as well as digital disruptors. Only those companies that do not violate material ESG exclusion criteria (ESG = environmental, social and corporate governance) are included in the selection. Subsequently, the portfolio managers analyse each individual company in search of superior or hard-to-replace business models in the respective segment.

In the final company valuation, financial information and sustainability factors are combined. Only companies with the most substantial business models and a leading sustainability profile find their way into the portfolio. The same applies to bond investments, for which only solid borrowers are selected.

The economy sets the pace

The performance of all asset classes – including the sensitivity to exogenous shocks – follows the economic development. Therefore, any effective risk management begins with an assessment of the economic environment.

Our economic analysts have been among the best in the world for years. They determine the current position in the economic and credit cycle, analyse possible systemic risks and make recommendations regarding short-term market risks. Based on these results, we adjust the equity and bond exposure within Bantleon Changing World and weight the individual sub-segments. Thus, the portfolio always corresponds to the current opportunities and risks of the capital market.

Since its inception on 3 August 2018, Bantleon Changing World has successfully managed several difficult capital market phases. For example, the fund was able to quickly compensate for the setbacks since the start of the coronavirus crisis at the beginning of 2020 and convince with a return of 10.4% (share class »PA«) in the calendar year. Individual future topics even received long-term tailwind from increasing digitalisation and the rapidly advancing energy transition. The active adjustment of the equity exposure and the weighting of the individual sub-segments not only proved to be a stability factor in troubled waters, but also enabled participation in the economic upturn. The bond segment benefited from the ECB's purchase programmes and the subsequent drop in interest rates. Duration, yield curve, risk spreads and inflation indexation were positioned in accordance with the return perspectives and thus the individual performance components were actively used. In all scenarios, the fund thus achieved its goal as a promising basic investment in the asset allocation of its investors: a regular high total return while reducing major temporary price declines.

Sustainable for the benefit of all!

Sustainable companies not only have the more stable business models, they also benefit from increasing demand from investors and clients. Regulatory initiatives, for example, are making investors and investment managers more responsible, while public pressure on large investors is increasing. In addition, the largest transfer of capital in history is due to take place over the next two decades: Worldwide, more than 30 trillion US dollars will be inherited by the younger generation, whose awareness of sustainability is high. In addition, 30% of the EU's reconstruction fund is to be invested in a climate-friendly way, from which some companies will benefit considerably. On top of this comes the European Green Deal, which aims to make Europe the first climate-neutral continent by 2050. As a result, sustainable companies that shape the key future growth trends offer above-average and stable return opportunities in the long term. The focus on green bonds also benefits more than just the climate. Thanks to increasing demand for green bonds, the total return is sometimes even higher than that of conventional bonds.

Bantleon Changing World is a leader in its segment, supporting a resource-efficient and fair global economic model.

Sustainability as part of the company valuation

The 17 United Nations Sustainable Development Goals (SDGs) are the basis for a world worth living in. 193 countries have committed to achieving them by 2030. In order to be investable for Bantleon Changing World, a company should make a significant contribution to achieving the goals, but at the very least it must not work against their achievement.

The portfolio management prepares a sustainability profile for each company. In addition to the ESG rating and the specific contribution to the UN Sustainable Development Goals, this also includes an analysis of the sustainability strategy, strengths and weaknesses, the company's relative positioning within the sector and reputational risks.

Excluded are companies that do not comply with the Convention on Anti-Personnel Mines (Ottawa Convention) and the Ban on Cluster Bombs (Oslo Convention).

Bond investments are preferably made as green bonds. Among the variety of listed investment instruments, green bonds are the only way to directly influence the use of the money lent for sustainable projects. Through dedicated financing, green bonds have a positive impact on the environment and the climate and support almost all of the 17 UN Sustainable Development Goals. And it is not even necessary to compromise on returns. On the contrary: thanks to increasing demand for green bonds, the total return is sometimes even higher than with conventional bonds.