Figure 2 CATEGORISATION OF SUSTAINABLE ......Figure 8 TOP 10 SWISS MARKET PLAYERS FOR SUSTAINABLE...
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Source: SSF Figure 2 CATEGORISATION OF SUSTAINABLE INVESTMENT APPROACHES Investment approach Sustainability focus Financial risk / return expectation SUSTAINABLE INVESTMENT APPROACHES PHILANTHROPY Sole focus on environ- mental/social impact No financial risk/ return objective TRADITIONAL INVESTING No systematic consideration of ESG and impact Sole focus on financial risk/return Pre-investment decision Baseline expectation of market-rate financial risk/return Below market rate risk/ return Post-investment decision Pre investment decision Exclusions Norms- based Screening Best-in- Class ESG Voting Sustaina- ble Thematic Invest- ments ESG Integra- tion ESG Engage- ment Impact Investing Align investments with personal values or established norms and mitigate ESG risks Pursue ESG opportunities Actively pursue positive impact Select investees solving a social/environmental problem Demonstrate measurable impact
Transcript of Figure 2 CATEGORISATION OF SUSTAINABLE ......Figure 8 TOP 10 SWISS MARKET PLAYERS FOR SUSTAINABLE...
Source: SSF
Figure 2CATEGORISATION OF SUSTAINABLE INVESTMENT APPROACHES
Inve
stm
ent
appr
oach
Sust
aina
bilit
y fo
cus
Fina
ncia
l ris
k /
retu
rn e
xpec
tati
on
SUSTAINABLE INVESTMENT APPROACHES PHILANTHROPY
Sole focus on environ-mental/social impact
No financial risk/ return objective
TRADITIONAL INVESTING
No systematic consideration of ESG and impact
Sole focus on financial risk/return
Pre-investment decision
Baseline expectation of market-rate financial risk/return Below market
rate risk/
return
Post-investment decision Pre investment decision
Exclusions Norms-based Screening
Best-in-Class
ESG Voting
Sustaina-ble Thematic Invest-ments
ESG Integra-tion
ESG Engage-ment
Impact Investing
Align investments with personal values or established norms and mitigate ESG risks
Pursue ESG opportunities
Actively pursue positive impact
Select investees solving a social/environmental
problem
Demonstrate measurable
impact
Figure 5DEVELOPMENT OF SUSTAINABLE INVESTMENTS IN SWITZERLAND (IN CHF BILLION)
Source: onValues, FNG and SSF
+82 %
Funds Mandates Asset Owners
450
400
350
300
250
200
150
100
50
02007 20142008 20152009 20162010 20172011 2012 2013
390.6
238.2
104.5
55.2
36.227.522.118.716.1
13.61418.8 18.8 24.5 22.5 25.5 28.6 34.9 40.3
64.294.4
57.9
46.3
46.2
12.2
8.1
215
141.7
56.147.641.240.632.420.3
32.8
71.1
128 %
25 %
47 %
Volume (CHF billion)
Figure 6SUSTAINABLE INVESTMENTS OF EXISTING VS. NEW STUDY PARTICIPANTS (IN CHF BILLION)
Existing participants’ funds
Existing participants’ mandates
Existing asset owner participants
New participants’ funds
New participants’ mandates
New asset owner participants
450
400
350
300
250
200
150
100
50
0
126.9
111.3
54.8
90.2
4.2
3.1
Volume (CHF billion)
Figure 8TOP 10 SWISS MARKET PLAYERS FOR SUSTAINABLE INVESTMENTS BY ASSETS UNDER MANAGEMENT IN SWITZERLAND (IN % AND CHF BILLION) (n=31)
38.1
30.5
22.8
15.2
7.6
0
25 %
20 %
15 %
10 %
5 %
0 %
23.1 %
UBS Group AG Credit Suisse AG Bank J. Safra Sarasin
Vontobel* Pictet Group** Partners Group***
RobecoSAM AG OLZ AGZürcher Kantonalbank /
Swisscanto Invest by Zürcher
Kantonalbank
LGT Capital Partners AG
14.0 %
11.4 %
8.9 %8.1 % 8.1 %
6.7 %
3.2 % 2.7 %1.8 %
Market Share in % Volume (CHF billion)
* this includes assets from Raiffeisen Schweiz, Notenstein La Roche Privatbank AG and Ethos Services SA** combined AuM of Pictet Asset Management and Pictet Wealth Management (includes assets managed for Ethos Services SA)*** refers to assets under management originated in Switzerland
Figure 10DEVELOPMENT OF INSTITUTIONAL AND PRIVATE SUSTAINABLE INVESTMENTS (IN CHF BILLION) (n=53)
Source : 2017 SSF ; 2016 FNG and SSF
Volume (CHF billion)
82 %
86 %
18 % 14 %
Private Institutional
450
400
350
300
250
200
150
100
50
0
175.6
336.3
39.4 54.2
+92 %
+38 %
Figure 13DEVELOPMENT OF SI APPROACHES (IN CHF BILLION) (n=57)
Source : 2017 SSF ; 2016 FNG and SSF
Volume (CHF billion)
Norms-based Screening
ESG Integration
ESG Engagement
Exclusions
ESG Voting
Best-in-Class
Impact Investing
Sustainable Thematic Investments
2017 2016
0 50 100 150 200 250
217.8153.1
188.999.5
157.8124.5
142.6166.1
117.849.0
65.145.1
36.921.2
12.110.3
+42 %
+90 %
+27 %
-14 %
+140 %
+44 %
+74 %
+17 %
Figure 27ASSET CLASS DISTRIBUTION FOR SUSTAINABLE INVESTMENTS (IN %) (n=48)
27.7 % Equity
22.3 % Real Estate/Property
16.8 % Sovereign Bonds
16.3 % Corporate Bonds
4.3 % Monetary/Deposit
3.9 % Private Debt
2.9 % Private Equity
1.3 % Infrastructure
1.1 % Supranational Bonds
0.3 % Hedge Funds
0.1 % Commodities
3.1 % Other
Figure 34APPROACHES ADDRESSED IN BROAD SI POLICIES (IN CHF BILLION) (n=55)
Volume (CHF billion)
1’200
1’000
800
600
400
200
0
741.1
382.0538.1 475.6 345.1374.9
ESG Integration ESG Engagement Exclusions Norms-based Screening
ESG Voting
Exclusion volumes no longer considered SI
Figure 44KEY DRIVERS FOR SI DEMAND IN THE NEXT 3 YEARS FOR ASSET MANAGERS (IN AVERAGE LEVEL OF IMPORTANCE) (n=27)
Demand from institutional investors
Demand from private investors
International initiatives
Legislative
Materiality
Notion of fiduciary duty
External pressure
1 32 4 5
4.3
3.6
3.4
3.3
3.3
3.2
2.9
Not important Very important
Figure 48KEY DRIVERS FOR FURTHER ADOPTION OF SI FOR ASSET OWNERS (IN AVERAGE LEVEL OF IMPORTANCE) (n=30)
Not important Very important
3.7
3.4
3.4
2.8
2.7
1 2 3 4 5
Pressure from the Board
Political pressure
Demand from beneficiaries
External pressure
International initiatives
