“This fund concretizes our positive impact methodology. Once passed this analysis filter, only around a hundred companies can be selected,” explains Vincent Kaufmann, director of Ethos.
Aimed at both institutional and private investors, the “BCV FUND (LUX) – Ethos Climate ESG Ambition” investment fund is based on the positive impact methodology developed by Ethos in order to invest in companies that contribute to the transition. ecological and reducing the impacts of climate change. For both BCV and Ethos, this is their first fund to be classified “article 9” according to European SFDR regulations.
The transition to a more sustainable economy that emits fewer greenhouse gases requires a redirection of capital towards innovative companies whose products and services contribute to the ecological transition and the reduction of greenhouse gas emissions or which mitigate the impacts of climate change. This is one of the main corollaries of the Paris Agreement and it is to respond
To meet this need, Ethos and BCV, partners since 2020, have decided to create a new investment fund: “BCV FUND (LUX) – Ethos Climate ESG Ambition”.
Officially launched on June 25, 2024, this “article 9” classified fund meets the highest level of requirements in terms of socially responsible investment. In particular, it must invest in economic activities that contribute to one or more environmental or social objectives without causing significant harm to other environmental or social objectives (principle of “Do no significant harm”). It must also ensure that the companies included in the fund apply good governance practices.
The construction of the fund is carried out in several stages, starting from a global reference universe comprising more than 2,000 companies. Firstly, all those whose products or behaviors are contrary to the values set out in the Ethos Foundation Charter are excluded from the investment universe. Second, only companies whose environmental, social and governance (ESG) practices are deemed sufficient – according to a rating carried out by Ethos – can be selected. Finally, and this is the specificity of this fund, companies must have a positive environmental impact in order to then be selected by BCV managers.
The investment universe is thus filtered with the positive impact methodology developed by Ethos in 2022. This makes it possible to determine the share of a company’s turnover generated in one of the seven themes identified as having a positive environmental impact and a key role in the transition to a more sustainable economy: ecological sustainability, low-carbon mobility, sustainable real estate, resilient agriculture, aquaculture and forestry, the circular economy , sustainable water management and pollution control. As for voting rights, they are exercised by Ethos, in accordance with the guidelines of the Ethos Foundation.
Vincent Kaufmann, director of Ethos: “We are very happy with the launch of this new fund whose main objective is to enable investors to contribute to the ecological transition and the fight against climate change. This fund concretizes our positive impact methodology. Once passed this analysis filter, only around a hundred companies, out of the 2,000 in the initial investment universe, can be selected, which demonstrates its high degree of climate ambition.”
The financial analysis of companies is carried out by the BCV management team, which identifies the best opportunities in this investment universe by combining qualitative, fundamental and behavioral analysis. The combination of these analyzes makes it possible to select securities that offer an attractive risk/return profile and to construct a diversified and balanced portfolio made up of around fifty companies.
Eric Chassot, CIO Equity at BCV and fund manager: “With this new fund, any private or institutional investor has the opportunity to participate in the development of companies active on a global level and whose products and services contribute directly or indirectly to the ecological transition and the fight against climate change.”
Ethos and BCV have been strategic partners since October 2020 with the aim of offering institutional investors, but also private individuals, sustainable and responsible investment solutions and products. This partnership includes six funds managed by BCV Asset Management and advised by Ethos, as well as other financial products developed jointly. In the second quarter of 2024, two new Ethos indices dedicated to sustainability were launched with the Swiss stock exchange, one in Swiss equities and the other in Swiss franc bonds, as well as two BCV index funds replicating these indices.
