All the investment funds proposed by Ethos that underwent the re-certification procedure this year obtained the same number of stars as in 2022. The FNG Label is awarded by the University of Hamburg to funds that pursue a rigorous and transparent approach to sustainability.
For the third consecutive year, Ethos and its various banking partners submitted four different investment funds for certification by the German Forum for Sustainable Investments (FNG) in 2023. As in 2022, three of these funds were awarded the maximum of three stars, while one fund was awarded two stars:
- Vontobel Fund (CH) - Ethos Equities Swiss Mid&Small (managed by Vontobel): ***
- Ethos II - Ethos Swiss Sustainable Equities (managed by Banque Cantonale Vaudoise) : ***
- Equities Sustainable World ex-CH (managed by Banque Cantonale Vaudoise) : ***
- Clartan - Ethos ESG Europe Small & Mid Cap (managed by Clartan Associés) : **
"This certification demonstrates once again that our sustainability strategy is particularly ambitious and successful", says Vincent Kaufmann, CEO of Ethos. "FNG is an independent label that is certainly one of the most credible and reputable in Europe. It crowns the work of all our teams and the excellent collaboration we enjoy with several partners."
As a reminder, the Clartan - Ethos ESG Europe Small & Mid Cap fund was also awarded the SRI Label by a leading independent committee for sustainable investment last September. Created in 2016 by the French government, this label distinguishes funds that implement a robust socially responsible investment (SRI) methodology leading to concrete and measurable results.
A rigorous and transparent approach
The FNG Label was launched in 2015 by the University of Hamburg and represents a quality standard for sustainable investment that is particularly well recognised on German-speaking financial markets. Funds awarded this certification must demonstrate that they pursue a rigorous and transparent approach to sustainability. The quality standard includes requirements for the presentation of the fund's sustainable strategy, the exclusion of certain sectors (arms, nuclear, coal, tobacco, etc.) and a verification of the entire portfolio according to certain sustainability criteria.
With over 110 questions, the certification process looks at sustainable investment style, ESG research capabilities and the engagement process with companies in the portfolio. Elements such as reporting, controversy monitoring and active ownership also play an important role.
Only funds that excel in the areas of 'institutional credibility', 'product standards' and 'portfolio focus' (stock selection, engagement and publication of key performance indicators) are awarded up to three stars. FNG sustainability certification must be renewed each year. Ethos intends to eventually submit its entire range of investment funds to independent certification.