The defensive mixed fund launched via Universal-Investment is intended to exceed the return of a pure money market or fixed-term investment with as limited risks as possible. The aim is to ensure the long-term preservation of the respective foundation capital while generating regular income.
“With the new fund, investors can benefit from the tried and tested sustainable investment concept of the Bank for Church and Caritas and significantly simplify their capital investments. Another advantage for investors is that they avoid the legally required and sometimes very time-consuming checks for investments in individually designed special funds, ”explains Bernhard Matthes, Head of the BKC Asset Management division.
The Bank for Church and Caritas is expanding its relationship with Universal-Investment and, together with the fund service platform, has set up the KirAc endowment fund Omega (ISIN: DE000A2QCXW2). The fourth joint mutual fund is based on the strategy of the investment approach of the BKC Treuhand Portfolio fund and is aimed in particular at church, non-profit or benevolent foundations that have previously managed their capital themselves.
The defensive mixed fund should outperform the return of a pure money market or fixed-term deposit on a long-term average with risks that are as limited as possible. The aim is to ensure the long-term preservation of the respective foundation capital while generating regular income.
Set up in accordance with the foundation
The fund aims to have an annual distribution policy in line with the foundation. To this end, around 65 percent (neutral quota) of the fund volume is to be held in European corporate, government and other bonds. Equities, half of which are North American and half European, (neutral ratio 20 percent) and alternative investments (neutral ratio 15 percent) are added and are intended to contribute to an efficient risk profile. Depending on the current market assessment, these neutral quotas can be flexibly adjusted.
The core of the underlying investment philosophy of the Bank for Church and Caritas is the value approach, through which stocks are selected whose market price is below their intrinsic value. The Asset Management of the Bank für Kirche und Caritas has long been using this method for other asset classes, such as precious metals, microfinance, cat bonds or hedging strategies, as part of a multi-asset value strategy developed in-house.
The fund’s investment strategy, which is based on Christian values, focuses in particular on environmental, social and corporate governance aspects. The fund invests primarily in sustainable issuers and companies with comparatively above-average positive environmental, social and governance ratings. Research data from the four sustainability rating agencies MSCI ESG Research, Sustainalytics, Vigeo Eiris and imug are used to evaluate these and are used for sub-areas of the sustainability evaluation.