Basler Kantonalbank and Bank Cler are set to launch six new sustainable strategies on 27 July, Citywire Switzerland can reveal.
The names of the new funds are BKB Anlagelösung Nachhaltig Ausgewogen, BKB Anlagelösung Nachhaltig Einkommen and BKB Anlagelösung Nachhaltig Wachstum.
Bank Cler has introduced three identical strategies under its brand: Anlagelösung Bank Cler Nachhaltig Ausgewogen, Anlagelösung Bank Cler Nachhaltig Einkommen and Anlagelösung Bank Cler Nachhaltig Wachstum.
All six strategies will be managed by the CIO of Basler Kantonalbank Sandro Merino and portfolio manager Patrick Schürmann.
The new funds are multi-asset strategies that have three different risk profiles: income (strategic equity exposure 25%), balanced (equity exposure 50%) and growth (equity exposure 75%).
All funds invest in four main asset classes: Swiss equities, global equities, Swiss bonds and global bonds.
Speaking to Citywire Switzerland the CIO of Basler Kantonalbank Sandro Merino said the allocation to Swiss equity and Swiss bond buckets is done directly while the international components of the portfolios are realised through investment funds.
He added that all six strategies can have up to 20% in satellite solutions. This includes investment themes such as technology, which is realised via investments in the Pictet Robotics fund or a NASDAQ ETF, for example.
Unlike the exisiting multi-asset funds from the banks, the new products have a specific focus on sustainability.
'We wanted to showcase that sustainable fund solutions can deliver as good of a performance as conventional funds,' Merino said.
He added that the sustinability filtering process has two stages: exclusion of companies from specific industries, for example weapons, tobacco and pornography, followed by the selection of companies with the best sustainability track record.
‘In this process we rely heavily on SRI and ESG ratings of companies done by MSCI,’ Merino said.
The asset manager also uses proprietary analysis, especially when it comes to fund selection. The team sends a questionnaire to fund managers and make final descisions based on the answers.
‘We see potential growth and rising client demand when it comes to sustainable investments. It is already quite a big trend in the institutional space and private clients have been a bit behind in this process but they are catching up quickly.’
All six strategies are available for clients of independent asset managers who have client accounts booked with weither Basler Kantonalbank or Bank Cler.