July 15, 2019
Mayence Fair Value Bond Fund Focuses on Sustainable Investments
Further Inflows from Institutional Investors
The Mayence Fair Value Bond Fund (WKN: A2AQZE) has changed. The fund invests in bonds whose issuers operate sustainably. “By sustainability we mean a viable corporate policy that incorporates economic, ecological, and social aspects,” explains Stefan Rensinghoff, Managing Director of North Channel Bank, which has invested substantially in the fund and is responsible for its portfolio management. “A core objective is to ensure long-term corporate success and sustainable corporate growth while taking into account people and nature.”
Fund Consulting in Accordance with ESG and SDG Criteria
“The objective of the investment approach for this fund is to achieve a positive performance over a 12 months period,” says Christoph Klein, founder and Managing Partner of ESG Portfolio Management GmbH. As fund initiator, Christoph Klein is responsible for the realignment of the fund and advises the portfolio manager on its implementation. “This bond fund, which focuses on European corporate bonds with investment grade credit ratings, already has a comparably high ESG (Environmental, Social, and Governance) quality at the beginning of June 2019 and, according to the MSCI, has an impact on the Sustainable Development Goals of “very high” – especially in the areas of nutrition and alternative energies. In addition, the fund achieves significantly lower CO2 emissions compared to existing corporate bond benchmarks”.
The conversion of the fund made it possible to attract additional strategic institutional investors. A well-known Munich family office and PSD Bank Westfalen Lippe eG have invested in the fund.
In addition to individual security selection of predominantly European bonds, which is based in particular on ESG criteria and SDG impact, the core element is tactical risk management using suitable, liquid instruments from the interest and currency sectors. Besides achieving an attractive annual return, the focus is on capital preservation.
The average credit rating is BBB (source: Universal Investment).
“We are closely monitoring EU standards for future ESG reporting requirements for asset managers and institutional investors. Our fund already reports transparently and strives to fully meet these upcoming requirements,” explains Christoph Klein.
North Channel Bank GmbH & Co. KG was founded in 1924 as the privately owned bank Bankhaus Oswald Kruber, located in Berlin. In 2009, a group of North American investors with expertise in the US Life Settlement sector acquired the bank and renamed it North Channel Bank. In the following years the bank developed into one of the leading institutes in US Life Settlement financing. 2013 with the takeover of its affiliate NorthStar Life Services, LLC, Irvine, California the bank gained direct access to and influence on a reliable, experienced, and renowned service provider. Today, in addition to financing, the bank also offers investments in US Life Settlements. In the structured finance division the bank focuses in particular on financing in the renewable energies sector, (especially equity interim financing), capital goods financing, and acquisition finance.
ESG Portfolio Management GmbH, located in Frankfurt, is an owner-operated company with core competence in bank-independent consulting on capital market products. It develops customized solutions for professional investors. Founder and Managing Partner Christoph Klein has been a renowned expert in the field of sustainable investments for many years. He was a member of the UN PRI Fixed Income Working Group and is a member of the DVFA Sustainable Finance Commission. Prior to founding his own company, ESG Portfolio Management GmbH, he worked as a portfolio strategist and Managing Director at DWS.
ESG Portfolio Management GmbH provides financial services that comprise investment brokering and investment advice, solely for the account and under the liability of AHP Capital Management GmbH, Hochstrasse 29, 60313 Frankfurt (section 2 (10) KWG).