Responsible investing during the coronavirus crisis

Melanie Rama, Dominik Schmidlin, Agnes Neher, Kim Berrendorf
July 30, 2020
As an asset manager with a long-term view, we are convinced that integrating ESG criteria into our investment process has a positive impact on the risk/return profile. Market developments during the coronavirus crisis have put this conviction to the test – and our approach has prevailed. A more sustainable company is a more resilient company, and testament to the fact that things will always look more promising with a long-term perspective. This is just one of the four trends that are set to continue for some time.

We create value by investing responsibly

As an asset manager, Baloise Asset Management is responsible for investing the insurance assets of the Baloise Group and the assets of external customers such as pension funds. As such, our asset management has a direct influence on our value-added model and many of our stakeholder groups. By making responsible investment part of our investment strategy, we are able to create value for the environment and the climate, society and our customers.

value-creation-model_EN

We are able to have a positive influence on environmental and climate issues in various ways, such as investing in environmentally friendly companies and technologies. In terms of society, investments in companies with high social standards ensure added value. Our products thus allow our customers to have a positive influence on sustainable development.

Investing in unprecedented times

a tiny plant growing out of a glass filled with coins

The COVID-19 pandemic has the potential to significantly accelerate existing long-term trends. In our view, the biggest impacts will be a sharp rise in public debt, potential de-globalisation, the acceleration of digitisation and the increased material relevance of sustainability factors.

The COVID-19 pandemic led to massive corrections in the financial markets at record speed and saw the global economy slide into one of the deepest recessions in history. Even though the financial markets have already recovered significantly, the consequences of the crisis will be felt not only in the short term but also in the long term. Below, we highlight four trends that we believe are of particular importance for investors with a long-term perspective.

 

Horizont am Meer

Conclusion: considering companies’ sustainability

The COVID-19 pandemic is likely to have a significant impact on the four long-term trends discussed above. In chart 6, we have summarised what we consider to be the most likely effects on economic growth, inflation and various asset classes for the first three trends. Long-term investors in particular should consider whether adjustments to their strategic investment strategy are necessary against this background. Trend 4, the increased integration of sustainability criteria, is in our opinion an overarching theme. It is essential to measure how future fit companies are and to integrate this into investment decisions, since by taking the sustainability of companies into account, investment risks can be reduced and better performance can be achieved.

baloise.com/nachhaltigkeit

Wir schaffen nachhaltig Wert.