Case Study: Eltaver AG A family office aligns investments with family values. Information on the organisation Type of organisation
Family Office
Approximate asset allocation (as of 31.12.2016)
No details
Who initiated the drafting of a sustainable investment policy?
The female family members in particular showed increased interest in responsible investing. Simultaneously, within the Asset Manager team there was also growing interest in sustainable investments and the family welcomed appropriate proposals.
Assets under management (as of 31.12.2016)
No details
Information on sustainable investment policy
What was the main motivation for this step?
What are the main components/content of the sustainable investment policy? How was the sustainable investment policy implemented?
What resources have been deployed for this?
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The main motivation was the family members’ wish to align investments with their personal values. In addition, the integration of sustainability criteria fits nicely with the “Value Investing” approach already adopted: the family has a long-term investment horizon. From the asset management perspective, the sustainable investment approach also serves to identify risks at an early stage and supplies ideas for new investment opportunities (attractive sectors, business models, or innovative companies). The Family Office invests in various asset classes, but the sustainability integration has so far focused mainly on the equity portfolio. The investment policy is based on a combination of ethical exclusion criteria (gambling, tobacco, weapons, nuclear energy) and a best-in-class approach. The portfolio’s carbon intensity is also reviewed periodically. Implementation took place in stages. The family has always applied ethical exclusion criteria. Eltaver has been investing in micro-finance since 2008, and the carbon footprint of the share portfolio was measured for the first time in 2011. The various activities highlighted the need to go further and take a more systematic approach towards the integration of sustainability criteria. This led to the additional adoption of the best-in-class approach: Financial instruments are only eligible for investment if they are rated as sustainable. Sustainability criteria are also considered in the quantitative analysis and therefore influence every investment decision.
Eltaver relies on partner banks for defining the sustainable investment universe. The analysis of the portfolio’s carbon footprint is based on yourSRI. Sustainability aspects are assessed internally as part of the quantitative analysis. Here, the emphasis is less on the scrutiny of specific indicators and more on a general assessment of risks based on common sense.
