"Sustainability is the result of our conviction"
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.
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