Starting in 2019 the Fund’s investment procedure includes stricter ESG factors. Now Russian companies are assessed against ESG criteria during an investment decision.
Vladimir Kirillov, CEO of TKB Investment Partners says that “ESG is becoming a potent factor for international investors. Funds whose investment process is integrating ESG factors in a systematic way are enjoying a growing popularity world-wide. Globally, over 20 trillion USD of assets are managed with the use of an ESG component. That is one fourth of the entire trust management industry worth. We are happy that the Fund under our advisory became one of the first Russian Equity Funds that meets the current customer demand”.
Anita Lindberg, Senior ESG Analyst at Alfred Berg says that effective management is not the only outcome which Fund’s customers want to see. They believe it is important that the asset manager and the advisor consider environmental, social and governance performance of a company while selecting equities into the Fund’s portfolio, and also use shareholder engagement as a tool to drive positive change.
To this end, they collect information provided by companies, use assessments by external organizations and consult with our investment team. This results in excluding some companies as not appropriate to invest in, while with the others our Fund managers start a dialogue on how to improve their ESG performance.
TKB Investment Partners provides advice to Alfred Berg Ryssland managers, a Swedish fund that has been investing into Russian equities since 2008. The Fund – which shows a consistently high performance – is part of the BNP Paribas Asset Management group. It holds 4 stars out of maximum 5 in the Morningstar rating.