Finance Monthly April 2020 Edition

Can you explain ethical mutual funds to us? In ethical mutual funds, the goal of achieving positive financial returns goes hand in hand with generating positive effects for the environment and society. We measure the impact of our funds’ equity investments, in relation to the social, environmental and governance indicators linked to the United Nations SDGs (Sustainable Development Goals). Tell us more about the sustainable and responsible mutual funds Etica offers. Etica’s funds’ goal is to create yield opportunities for savers in a medium- long term perspective, aiming at the real economy and rewarding companies and states that adopt virtuous practices. Currently, the range is made up of six mutual investment funds plus three sub-funds in the Luxembourg range (launched at the end of 2019 and mirroring some of the SGR’s historical strategies), distributed across all risk/return profiles. As climate concerns have prompted more investors to move their money to ethical funds which support the positive changes they want to see, have you seen an increase in people investing in Etica’s ethical funds? Yes, sustainability and responsibility are keywords in the financial sector today. When Etica was established in 2000, this was a niche market, but today it has international prominence and can be described as a mainstream market, exceeding $30 trillion of assets under management worldwide, with 34% growth in only two years and Europe at the top of the rankings (according to the Global Sustainable Investment Alliance). This strong focus on sustainability and responsibility in the financial world is no accident. According to the World Economic Forum, in only a decade, global risks have shifted from being mainly economic in nature to AN INTRODUCTION TO We speak with Arianna Magni, Head of the Institutional and International Business Development Department at Etica Sgr - the only Italian asset management company that, since its launch in 2000, exclusively offers sustainable and responsible mutual funds to private and institutional investors, with the aim of representing the values of ethical finance in financial markets. The distinctive character of Etica’s funds is the rigorous selection of securities issued by companies and countries that show a special commitment to environmental protection, human rights and good corporate governance. Eticasustainsaconstantdialoguewiththemanagementandexercises its voting rights in the shareholders’ meetings of the companies in which its funds invest, in order to urge companies towards more responsible behaviour and help them achieve this goal. By embracing ESG criteria, codified in a transparent methodology, the company can manage risk more effectively and seize interesting investment opportunities. Here, Arianna introduces us to ethical mutual funds and explains the growing appetite for them. ETHICAL MUTUAL FUNDS Arianna Magni, Head of the Institutional and International Business Development Department at Etica INVESTMENT - ETHICAL MUTUAL FUNDS 58 www.finance-monthly.com