"Sustainability is the result of our conviction"
Date: 18. July 2022
- Retail funds
- Institutional funds
The asset manager Salm-Salm & Partner has lifted all its mutual funds to the highest level of the new sustainability standards. Constantin Prinz zu Salm-Salm explains in an interview with ChampionsNews that this was a logical next step on their long ESG journey. He focuses on the Salm – Nachhaltige Wandelanleihen Global (ISIN LU0535037997 share class I EUR) and Salm – Nachhaltige Aktien Global – klimaoptimiert (ISIN LU1480732285 share class I EUR).
ChampionsNews: Salm-Salm & Partner has been exclusively offering Article 9 mutual funds since the end of June. What drove you to take this ambitious step?
Constantin Prinz zu Salm-Salm: Raising all our funds to Article 9 was simply a logical step forward. Since my father founded our asset management company in 1990, we have been dealing with the question of how to responsibly manage the assets entrusted by our investors to us on a daily basis. Sustainability is in our blood. For 800 years, the Salm family has consistently farmed Germany's oldest family-owned vineyard and has always placed great value on sustainability and responsibility.
800 years is an impressive "track record". Could you tell us more about it?
In winemaking, I find it remarkable that our ancestors always thought of the next generation. You can only take from the soil what will grow back. This also influences our way of thinking in asset management. We have been a PRI member since 2012. In 2015, our Salm – Nachhaltige Wandelanleihen Global (ISIN LU0535037997 share class I EUR) was one of the first to be awarded the FNG seal and the Austrian Ecolabel. In 2016, we launched the first Paris Agreement-compatible two-degree Celsius equity fund, the Salm - Salm Nachhaltige Aktien Global – klimaoptimiert (ISIN LU1480732285 share class I EUR).
I believe it is easy to follow this path if you have clear conviction. As an investor, you don't have to participate in all forms of capitalism. In fact, the performances of our sustainable funds have actually outperformed our conventional strategies since 2014.
How do you implement Article 9?
Our experience with the climate equity fund Salm – Nachhaltige Aktien Global – klimaoptimiert has helped us tremendously in our pursuit of this goal. We can already invest in equities in a scientifically sound manner, which is in line with the goals laid out in the Paris Climate Agreement. For convertible bonds, we want to take gradual steps towards the Climate Agreement’s two-degree goal every year. Climate is one of our metrics that we use to address Article 9.
Which type of client are you assisting on Article 9 and sustainability?
Our investors come from all sectors of the financial world. Often it is the banks, insurance companies and asset managers who want to take the next step towards achieving sustainability. Within our funds, we offer high-quality solutions that meet the needs of these investors. This includes the regular exchange of ideas and valuable know-how on sustainability. Above all, our clients appreciate our transparency and the close relationship we have with them.
You speak about having clear convictions. How do you define these within your company?
We pursue a clear mission statement that is strongly based on the values and entrepreneurial experience from 800 years of family history. We finance and participate in listed companies in the real economy worldwide, paying particular attention to the responsible treatment of people, nature and creation. All this is done with the aim of being a leader in credible and value-oriented capital investments. On our journey to this goal, we have gradually improved our investment process and continuously redefined it over the last few years. For us, sustainability is not an advertisement or a regulatory requirement, but rather the result of our strong convictions. I believe this is what sets us apart from many of our competitors.
©2022. All rights reserved. This publication is exclusively intended for the use of professional and semiprofessional investors and is not intended for private investors. This publication is for information purposes only. The information provided should not be taken as recommendation or advice. All information is based on publicly available sources which we consider to be reliable. We cannot guarantee the accuracy or completeness of the information, and no statement in this publication is to be understood as such a guarantee. The opinions expressed in this publication are subject to change without notice. Information on historical performance do not allow conclusions about or otherwise guarantee future performance. The sole basis for the acquisition of units is the Fund documentation for the respective investment fund, which is available free of charge at Universal Investment and in the Internet at www.universal-investment.com. This does not constitute an offer or invitation to subscribe for units or shares of an investment fund. The information presented should not be considered reliable in this sense, as it is incomplete with regard to the possible interpretation as a subscription offer and may still be subject to change.
A summary of your investor rights can be found at www.universal-investment.com/en/Corporate/Compliance/Investor-Rights. In addition, we would like to point out that Universal Investment may, in the case of funds for which it has made arrangements as management company for the distribution of fund units in other EU member states, decide to cancel these arrangements in accordance with Article 93a of Directive 2009/65/EC and Article 32a of Directive 2011/61/EU, i.e. in particular by making a blanket offer to repurchase or redeem all corresponding units held by investors in the relevant member state.