BayernLB

Fund manager for sustainable capital investments

More and more institutional investors are taking into consideration ESG criteria in their capital investments, in addition to the traditional investment criteria of returns, security and availability.

The Sylvenstein Dam in the Isar Valley. Situated in the Bavarian town of Lenggries, it ensures a sufficient supply of water to the Isar River.

BayernInvest – fund manager for sustainable capital investments

More and more institutional investors are taking into consideration, in addition to the traditional investment criteria of returns, security and availability, whether individual issuers also satisfy requirements relating to environmental and societal factors, as well as good management. This is also referred to here as the ESG (Environmental, Social and Governance) criteria. More than half of institutional investors in Germany already keep in mind the corresponding criteria in their capital investments.

Competent solutions

As a fund manager, BayernInvest offers institutional investors mutual and special funds that are managed according to sustainability factors. BayernInvest provides professional support when designing and implementing an individual and sustainable investment strategy.

In the first stage, we work together to find out which ESG criteria are particularly important for institutional investors and the strategies with which these can be implemented. Here are some examples:

  • With regard to capital investment, the company may prefer to demonstrate a particularly good sustainability performance within an industry, for example a future-oriented climate strategy, and, in doing so, open up interesting business and earnings potential.
  • It could exclude from investments companies or countries that, in the investor’s opinion, are involved in controversial business areas (such as manufacturing banned weapons) and controversial business practices (such as corruption, child labour) or violate internationally recognized standards (such as working and human rights).
  • It could selectively use the voting rights connected with shares to address sustainability topics that are critical in the view of the investor directly with the company and demand improvements.

It could selectively use the voting rights connected with shares to address sustainability topics that are critical in the view of the investor directly with the company and demand improvements.

BayernInvest also has a competent partner on its side for whichever of these strategies our customers choose. In addition, the independent NKI – Institute for Responsible Investments – also provides support in continuously further developing the services on offer.