French boutique Cedrus AM, involved in active fund selection and asset allocation, has assessed that SRI filters have globally avoided the loss of around €650m of assets at the start of the Volkswagen scandal on 18 September 2015.
Between 18 September and 5 October, Volkswagen’s stock valuation dropped by 48% whilst VW bonds decreased by 10%.
Cedrus AM explained 25% of SRI Eurozone equity funds it has in portfolios were exposed to Volkswagen as at 18 September 2015. The firm’s equities’ exposure to the German automotive firm was 0.28% against 0.75% for the Eurostoxx index.
Cedrus AM has evaluated SRI Eurozone equity funds’ assets under management at €100bn. On that basis, SRI filters have saved approximately €225m, the firm said.
The French boutique was also exposed to Volkswagen through 70% of SRI credit funds it has in portfolios as at 18 September 2015. Its exposure to Volkswagen’s corporate bonds reached 0.64% against 1,69% for the Barclays Euro Corporate Bond index.
Cedrus AM estimated that Eurozone fixed income funds’ AUM currently amount to €400bn. According to the company, SRI filters have therefore avoided the loss of €420m in assets under management.