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Sustainability is fundamental for long-term investing

Sustainability has always been a fundamental component of our investment philosophy, which has been designed for long-term investing. Sustainable means long-term, stable and future-oriented.

We operate based on a comprehensive understanding of sustainability which pursues a long-term oriented approach for the well-being of all interested parties. After all, a company can only achieve lasting success if it serves its customers well, treats its employees and business partners fairly, makes adequate investments, pays taxes and avoids harming the environment. Ecology and social responsibility are the prerequisites for lasting economic success. You cannot have one without the other.

The quality of our investments is reviewed as part of our fundamental in-house analysis process, at which time we strive to work out how sustainable the business model of a company is: how do things stand with competitiveness and profitability? How do things stand with stability and growth? Is there enough capital on the balance sheet to allow for a flexible approach in both goods times and bad? Sustainable management needs profitable companies.

We also evaluate environmental and social issues along with good corporate governance matters to see what the opportunities and risks are. Each of the three criteria for sustainability, also referred to as ESG (Environmental, Social and Governance) factors is considered from the perspective of a long-term investor so as to ensure that none of the aspects will have a negative impact on the value of the company. As part of this process, we look particularly closely at ethical corporate governance. We feel it plays a crucial role in the company's ability to grow in a positive way and allows conclusions to be drawn concerning how well all of the ESG factors are being taken into account.

People shape companies, the economy and markets

Sustainability is more than an environmental veneer and cannot be measured using rigid templates. It needs to be put into practice by companies and all stakeholders alike and must be thoroughly understood. Sustainable investment therefore starts with people – primarily those who make important decisions for a company and who shape the corporate culture and value system.

 

Active owners as a powerful corrective measure

We are convinced that interacting closely with business leaders and actively exercising voting rights are important prerequisites for successful, sustainable investing. Handling our rights and duties in a responsible way therefore plays a central part in our investment process and impacts the quality of our investments.

As part of a dedicated active-ownership process, we observe and analyse how our investments perform. Whenever critical issues arise which may have a negative impact on business performance, we discuss them with management. We consider ourselves to be a constructive sparring partner that makes meaningful suggestions and helps management with implementation.

Active-Ownership-Report 2023

Active-Ownership-Report 2022

Active-Ownership-Report 2021

Active-Ownership-Report 2020

Active-Ownership-Report 2019

Investing responsibly - Flossbach von Storch

We have signed the United Nations Principles for Responsible Investment (PRI for short). They place an obligation on all members to take environmental and social issues and aspects of good corporate governance into account when making investment decisions and to integrate active engagement and the exercising of voting rights as a shareholder. These objectives are consistent with our conviction that: sustainable investing should be a matter of course for any active, long-term oriented investor.

Disclosure Regulation

Regulation (EU) 2019/2088 ("Disclosure Regulation" or "SFDR" (Sustainable Finance Disclosure Regulation)) places an obligation on financial market operators to disclose information about strategies for dealing with sustainability risks and potential and/or identified adverse impacts on sustainability.

More on fulfilling disclosure requirements

The five principles of our investment strategy

Our investment philosophy follows five guidelines: diversification, flexibility, quality, solvency and value. These five principles are reflected in all of our funds and mandates.

More about our investment guidelines

A clear view of the capital markets

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.

More about our world view

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