Sustainable Equities | Method

Invest in good companies: Invest in our unique investment approach

Our investment approach of "investing in good companies" is unique as our companies always combine very positive characteristics such as faster growth, higher profitability, healthier balance sheets, lower valuation, better ESG ratings, and a very low carbon footprint. Our outperformance is mainly based on our fundamental stock selection.

To achieve robust results and mitigate the randomness of stock-specific risks, our portfolios are very well diversified and have a high active share and a reasonable tracking error.

Our investment universe goes beyond the benchmark holdings to take advantage of investment opportunities that are neglected by traditional benchmark-oriented managers.

Investment strategy: Unique portfolio characteristics deliver outstanding performance

The higher probability of outperformance results from systematic investment in companies that achieve high values in the following 5 dimensions:

  • Growth - is the company successfully expanding its business?
  • Profitability - is the company operating efficiently?
  • Financial health - is the company in good financial shape?
  • Valuation - is the company's market price attractive?
  • Sustainability - does the company score highly in terms of ESG ratings?

Our research on relevant fundamental selection criteria forms the basis for our fundamental model. We have published the most important results in Wilmott Magazine.

READ the full Wilmott article

 and an abridged version in Finanz und Wirtschaft

READ the article in Finanz & Wirtschaft

Dr. Gabriel Herrera

Senior Partner
Head Artico Equity Team
+41 (44) 201 40 20

Richard Schaefer

Client Relationship Manager
+41 (21) 323 71 71

Award

Fully integrated ESG/sustainability criteria

What is our motivation for using ESG?

Companies with a high ESG rating will perform better than companies with a low ESG rating because:

  • High ESG scores are a good indicator of excellent management,
  • They attract significant institutional capital flows and
  • They help to reduce investment and reputational risks.

What makes our ESG approach in the ARTICO Sustainable Equity funds so unique?

"Best-in-class ESG strategies often invest with a sole focus on ESG. This can lead to undesirable sector- and country-specific biases, including the purchase of overvalued stocks. We create portfolios with superior fundamental characteristics and very high ESG scores while maintaining a very low carbon footprint.

How does ESG affect performance?

Our proprietary Artico ESG factor, developed based on MSCI ESG scores, is a good predictor of future outperformance.

Serafin Asset Management AG is a signatory to the UN PRI. The Artico Equity Team follows the commitment and exclusion list of the SVVK (Swiss Association for Responsible Investment), fully supports the PARIS agreement on climate change, and is also a supporter of the TCFD (Task Force on Climate-Related Financial Disclosures).

Published research results:

Does sustainable investing contribute positively or negatively to outperformance? And how patient do investors need to be to benefit from the positive effects? Our research provides answers to these questions, and our conclusions about the time horizon required may come as a surprise to investors who are hesitant about adopting sustainable investing.

READ the full article published in Wilmott Magazine (Sep 2020).

The Artico Equity Team introduces itself

The Artico Equity Team is the specialist for sustainability and systematic investment strategies within Serafin Asset Management. The team is responsible for the management of the Artico Sustainable Equity funds.

What is special about the Artico approach is the simultaneous combination of three objectives in one portfolio: Firstly, listed companies worldwide are assessed according to traditional financial analysis criteria. Preference is given to companies that are growing at an above-average rate, are more profitable, have a healthy balance sheet, and are reasonably valued. This is done using a systematic approach, with the advantage of achieving very broad coverage and ensuring repeatability. Secondly, sustainability criteria are integrated, partly using an exclusion list and partly as a positive selection criterion. Care is taken not to exclude too many companies in advance so as not to distort the investment opportunities unnecessarily. Finally, the CO2 footprint is taken into account in the portfolio construction to achieve the sustainability target (in accordance with Art. 9 SFDR) in line with the Paris Agreement.

Publications

TWO PAGER | ARTICO SUSTAINABLE EMERGING MARKETS

TWO PAGER | ARTICO SUSTAINABLE EMERGING MARKETS

Download now (PDF)
TWO PAGER | ARTICO SUSTAINABLE EQUITY FUNDS

TWO PAGER | ARTICO SUSTAINABLE EQUITY FUNDS

Download now (PDF)

You would like to invest? Contact our experts

Dr. Gabriel Herrera

Senior Partner
Head Artico Equity Team

Dr. Ulrich Niederer

Senior Investment Advisor, Partner
Artico Equity Team

Michael Brenneis

Investment Manager, Partner
Artico Equity Team

Tero Toivanen, CFA

Senior Investment Advisor, Partner
Artico Equity Team

Eduardas Lazebnyj

Investment Manager
Artico Equity Team

The content of this website is directed at persons who are resident in Germany or Switzerland or who access this website from Germany or Switzerland.

This website and the information provided on this website shall not constitute an offer to sell or a solicitation to purchase or subscribe any shares or units in the funds mentioned on this website. The key investor information, the prospectus, the annual and semi-annual reports of the funds are published on this website to comply with statutory requirements.

Subscriptions will only be received and shares or units in the funds issued on the basis of the most recent key investor information and the contractual conditions set out in the prospectus in conjunction with the most recent annual and/or semi-annual report of the fund.

A financial investment is associated with risks. The value of a fund unit/share or investment, as well as the income derived from it, may be subject to fluctuations and are not guaranteed. The investor may not get back the full amount invested. Past performance is not indicative of future performance that may be expected.

The following information is general in nature and is not and may not be construed as constituting investment advice or any form of recommendation by Serafin Asset Management. Prior to any potential investment users should carefully consider the suitability of the investment for their individual circumstances and personal perspectives and should consult their tax, legal, financial, investment or other advisor.

For website visitors located in Germany: Please note the additional legal notices and the privacy policy.

For website visitors located in Switzerland: Please note legal information and the privacy policy as well as the information obligations (FINSA).

Any person who is a U.S. person (as such term is defined in Regulation S under the U.S. Securities Act of 1933) is not eligible to invest in the investment funds indicated on this website. I hereby certify that I am neither a citizen nor a resident of the United States of America and that I do not have a place of business in the United States of America and, in particular, that I am not a U.S. person (as such term is defined in Regulation S under the Securities Act of 1933).

The content of this website is directed at persons who are resident in Germany or Switzerland or who access this website from Germany or Switzerland.

This website and the information provided on this website shall not constitute an offer to sell or a solicitation to purchase or subscribe any shares or units in the funds mentioned on this website. The key investor information, the prospectus, the annual and semi-annual reports of the funds are published on this website to comply with statutory requirements.

Subscriptions will only be received and shares or units in the funds issued on the basis of the most recent key investor information and the contractual conditions set out in the prospectus in conjunction with the most recent annual and/or semi-annual report of the fund.

A financial investment is associated with risks. The value of a fund unit/share or investment, as well as the income derived from it, may be subject to fluctuations and are not guaranteed. The investor may not get back the full amount invested. Past performance is not indicative of future performance that may be expected.

The following information is general in nature and is not and may not be construed as constituting investment advice or any form of recommendation by Serafin Asset Management. Prior to any potential investment users should carefully consider the suitability of the investment for their individual circumstances and personal perspectives and should consult their tax, legal, financial, investment or other advisor.

For website visitors located in Germany: Please note the additional legal notices and the privacy policy.

For website visitors located in Switzerland: Please note legal information and the privacy policy as well as the information obligations (FINSA).

Any person who is a U.S. person (as such term is defined in Regulation S under the U.S. Securities Act of 1933) is not eligible to invest in the investment funds indicated on this website. I hereby certify that I am neither a citizen nor a resident of the United States of America and that I do not have a place of business in the United States of America and, in particular, that I am not a U.S. person (as such term is defined in Regulation S under the Securities Act of 1933).

The content of this website is directed at persons who are resident in Germany or Switzerland or who access this website from Germany or Switzerland.

This website and the information provided on this website shall not constitute an offer to sell or a solicitation to purchase or subscribe any shares or units in the funds mentioned on this website. The key investor information, the prospectus, the annual and semi-annual reports of the funds are published on this website to comply with statutory requirements.

Subscriptions will only be received and shares or units in the funds issued on the basis of the most recent key investor information and the contractual conditions set out in the prospectus in conjunction with the most recent annual and/or semi-annual report of the fund.

A financial investment is associated with risks. The value of a fund unit/share or investment, as well as the income derived from it, may be subject to fluctuations and are not guaranteed. The investor may not get back the full amount invested. Past performance is not indicative of future performance that may be expected.

The following information is general in nature and is not and may not be construed as constituting investment advice or any form of recommendation by Serafin Asset Management. Prior to any potential investment users should carefully consider the suitability of the investment for their individual circumstances and personal perspectives and should consult their tax, legal, financial, investment or other advisor.

For website visitors located in Germany: Please note the additional legal notices and the privacy policy.

For website visitors located in Switzerland: Please note legal information and the privacy policy as well as the information obligations (FINSA).

Any person who is a U.S. person (as such term is defined in Regulation S under the U.S. Securities Act of 1933) is not eligible to invest in the investment funds indicated on this website. I hereby certify that I am neither a citizen nor a resident of the United States of America and that I do not have a place of business in the United States of America and, in particular, that I am not a U.S. person (as such term is defined in Regulation S under the Securities Act of 1933).