Environmental, Social and Governance (ESG) issues are becoming more and more essential in our asset management business because their real impact on financial markets is constantly growing.
As a result, our mission is not only to preserve and grow our clients' assets but to integrate ESG factors in an investment approach that adds value in these areas.
Today, this vision of Responsible Finance is represented by SRI and its various expressions which we actively support through the extra-financial analytical expertise and management embodied in our SRI equity funds: Tricolore Rendement, Saint-Honoré Europe SRI, Ecosphere Europe and Ecosphere World. Altogether, these funds had EUR 3.1bn under management at April 30 2010.
What is SRI?
Socially Responsible Investing (SRI) is a generic term describing investments which are ethical, responsible and sustainable; in other words, all investments that combine investors' financial objectives with their commitment to environmental, social and governance issues (ESG).
In France, SRI is often defined as an investment approach which integrates traditional financial criteria with stock picking based on Environmental and/or Social and/or Governance issues along with consideration of any impacts on the Stakeholders (ESGS).
To find out more about SRI definitions and set-ups see : http://www.novethic.com ; http://www.eurosif.org.
SRI is at the heart of Edmond de Rothschild Asset Management's strategy
"For more than 250 years, the Rothschild family has joined with companies for an industrial and financial adventure. The Rothschild family has managed to preserve its reputation and survive numerous crises throughout its history because of an approach based on confidence and responsible investing.
The difference between yesterday and today is that the environmental challenges confronting our world are now much bigger. This is why - after Ecosphere World and Ecosphere Europe, funds dedicated to environment stocks and Saint-Honoré Europe SRI, a European equity fund benefiting from the best European management and an integrated SRI approach- Edmond de Rothschild Asset Management has adapted Tricolore Rendement, enhancing its investment process by integrating a SRI Dialogue and Commitment process on ESGS themes (Environment-Social-Governance and Stakeholders).
By developing its SRI expertise, Edmond de Rothschild Asset Management is offering a new analytical and investment tool to complement its existing products, providing an efficient investment solution which also promotes the economic development of companies committed to finding solutions to sustainable development issues.
We are convinced that including ESGS (Environment- Social-Governance-Stakeholders) criteria in our company analysis will help generate regular and long term capital growth. Accordingly, in compliance with our recent signing of the Principles for Responsible Investment drawn up by the United Nations, we will continue to gradually develop our investment management along these lines."
Philippe Couvrecelle
President du Directoire
Edmond de Rothschild Asset Management