Responsible Investment considerations – integral part of our investment philosophy
At Julius Baer, we follow an investment approach that expertly mixes assets by taking advantage of both the current investment horizon and decade-long economic developments. We enhance returns through active structuring of the asset allocation according to secular trends and by tactically spotting clues in markets. Taking financial material Environmental, Social and Governance (ESG) risks into consideration further helps to take well-educated decisions and identify the winning companies and sectors of the future.
The Julius Baer Investment Approach consists of three components: secular outlook, understanding market patterns and positioning, and taking financially material ESG risk into consideration (Responsible Investment).
Responsible Investment combines financial assessment with information regarding ESG risks, and is built upon the understanding that key extra-financial factors, such as corporate governance, vulnerability to climate change, water supply stress, product safety and quality, and corruption and instability can have a significant influence on a company’s financial success. We are convinced that firms recognising the importance of these factors manage industry-specific risks more efficiently than their competitors, and will be able to report more perennial profitability and creditworthiness. In doing so, the underlying goal is to capture the entire spectrum of risks to achieve what is economically profitable for our clients in the long-run.