At Vontobel, we are convinced that a one-size-fits-all ESG approach falls short to account for differences in geographies, asset classes as well as investment styles and objectives. For this reason, we develop specialized ESG strategies tailored to the respective investment strategy. This enables us to cover a wide range of client needs in a targeted manner, thus creating added value compared to standardized ESG approaches, such as passive ESG ETFs.
In the management of bond strategies, performance is mainly driven by aspects such as duration, currency and ratings. Bonds are often purchased out of new issuance in order to keep costs low. We consider it therefore more practicable to mainly use stable sustainable investment universes for our sustainable bond products instead of broad integration processes. As a consequence, our sustainability funds and mandates are based upon a screening approach. For more mainstream investment products, in our view, the screening approach is most convincing, too. It is by applying this approach, that we can establish a clearly structured investment process.