Development of the Regulatory and Legislative Environment

Chapter 12. Sustainable Thematic Investments

Sustainable thematic investments can create value as part of a stock allocation process thanks to an attractive risk/return profile. They can help diversify a stock allocation, since they exhibit only minor overlaps with the popular global equity indices. Combining sustainable thematic investments with ESG integration and active shareholder ownership principles creates an advantageous sustainability profile.

Chapter 13. Impact Investing

Impact investments distinguish themselves from other forms of sustainable investing mainly by their intentionality to achieve a positive social or environmental impact and their commitment to report on the impact or outcome of the investments (measurability). The majority of impact investing funds target the delivery of at least market-rate returns and are a suitable investment vehicle to diversify investment, as returns are often uncorrelated with those of the mainstream market.

Chapter 13.1. Investments for Development

After years of steady growth, investments for development worldwide now exceed USD30 billion. Switzerland has assumed a leading role in this area. This growth reflects not only a societal trend toward more sustainability but also new investment opportunities in frontier markets. While microfinance investments were previously the mainstay, other sectors—particularly the energy sector—are now also gaining importance.

Chapter 13.2. Microfinance

Switzerland provides management and consulting services for 38% of global microfinance investment, making it the world market leader in this segment. A global microfinance index showed constant positive returns of 3–6% (in US dollar terms) in the past eleven years, thus proving that microfinance investment vehicles are extremely robust in the face of global economic weaknesses.