For the first time, Raiffeisen KAG has added bond fund to its portfolio, which is sustainably managed globaly. The Raiffeisen Sustainability Rent invests in various bond classes worldwide.
The sustainability approach of Raiffeisen KAG, which is also applied in the Raiffeisen Sustainability Rent, combines the strategies "Avoid", "Support" and "Influence". The basis for the sustainability rating is a ratio developed by Raiffeisen KAG itself - the "Raiffeisen ESG Score".
The underlying sustainability research is based on internal and external sources. In order to be included in the portfolio, a stock must have a very good rating both from a financial and a sustainability perspective. Positive and negative ESG momentum, ie improvements or deteriorations in the sustainability assessment of a company / state, are also taken into account in the buying and selling process.
From the sustainability data, Raiffeisen KAG calculates the "Raiffeisen ESG score" (on a scale between 0 and 100): 50-60 is good. This score essentially determines the title selection.
The Raiffeisen Sustainability Rent is aimed primarily at customers who want to diversify their portfolio. In addition, the investment offers the opportunity to achieve a sustainable impact on companies, as the fund management takes into account the environmental and social orientation of companies in the selection of securities. From a risk-return perspective, fund management increasingly focuses on emerging market bonds, inflation-linked bonds and euro-denominated corporate bonds (investment grade) in line with current capital market developments.
In addition, there are pensions in various dollar currencies, where the currency risk is currently hedged. As many state-owned issuers do not meet the sustainability criteria, the fund instead uses bonds issued by other high-credit institutions that operate sustainably. These include, for example, international development banks, such as the World Bank or the European Development Bank.