Only if a company is well managed ("governance") can it be successful in the long term and thus satisfy the interests of all stakeholders.
As part of our investment process, we first analyse the business model of a company: what is its competitiveness and profitability like? What about stability and growth? Is the balance sheet sufficiently capitalised to enable flexibility in good times as well as bad?
The future viability of the business model is determined, in particular, by the key players – above all senior management. For this reason, our analysis focuses on the question of whether the management of a company wants to, is able to, and is allowed to operate in the way we think a long-term investor should. A remuneration system that reconciles the financial situation of the management with that of owners, and a corporate culture that promotes entrepreneurial action and thus identification and responsibility, can increase a company's prospects of success.
A detailed questionnaire is the basis for our analyses, with which we try to decipher the DNA of a company. ESG ratings from an external provider help to complete this picture or identify possible problems, but they will never entirely replace one's own work.
Ultimately, before any investment it is important to answer the crucial question: can the company be successful in the long term? Only then does it deserve the rating “sustainable”.
"Sustainability is not new to us, but it is rather an essential characteristic of a long-term investor and thus of a long-term investment strategy. A company can only operate successfully and sustainably over the long term if it serves its customers well; motivates its employees; treats its business partners fairly; invests sufficiently; pays taxes, and does not cause any environmental damage. This is why we not only deal with business models and company balance sheets, but also with the people behind a company."
“We have signed the UN Principles for Responsible Investment (PRI). PRI commits all signatories to integrate environmental and social issues, as well as questions of good corporate governance into their investment process (Environmental, Social, Governance, ESG). Flossbach von Storch follows a comprehensive definition of sustainability, where a long-term focus on corporate governance with integrity is of particular importance. In our opinion, this allows conclusions to be drawn regarding all relevant ESG factors.”
Our investment philosophy follows five guidelines: diversification, flexibility, quality, solvency and value. These five principles are reflected in all of our funds and mandates.
As active investors, we have a world view that shapes our investment decisions. Learn more about our view of the capital markets, monetary policy and individual asset classes.