Funds managed with social, environmental and good governance criteria

The system of ethical funds on offer to the customers of Intesa Sanpaolo consists of bonds and equities funds.

Fund Assets at 31/12/2009 (€ mln) Performance
Ethical international equity 110 +22.7%
Ethical bonds 218 +7.8%
Ethical diversified 103 +8.9%

Environment

Ethical fund assets represent 0.81% of the Group’s total fund assets. Investments in ethical funds are selected on the basis of positive criteria (inclusive principle) to identify the presence of good social and environmental governance in companies or institutions under analysis and negative (exclusive principle) for those areas of activity that are considered to be in contrast with the ethical principles asserted by the funds. The “best in class” principle is also used to identify companies that, in certain markets at risk, stand out for their social-environmental initiatives.  Environmental screening is entirely subject to the principle of “best in class” given that all the companies listed with major capitalisation have a notable impact on the environment, and this principle facilitates the selection of the most “virtuous” securities. In 2009, the investible universe was modified, giving favourable consideration to programmes to reduce greenhouse gases, the protection of biodiversity, the use of clean technologies, the involvement of suppliers and protection of minorities in the workforce; and, unfavourably, the involvement in the arms sector, the breach of anti-trust rules, accounting fraud and discrimination in the issuance of loans. There are no specific policies in place regarding exercising voting rights in companies belonging to the funds or subsidiaries.
In order to guarantee that management choices correspond to the ethical principles stated above, an autonomous Sustainability Committee has been set up, independent of Eurizon which is represented by a single committee member. Composed of professionals of heterogeneous extraction with significant experience in the various areas of social responsibility (bioethics, alternative energy sources, corporate governance, law, medicine, environment and equal opportunity), the Committee steers the fund management and formulates strategies to resolve key CSR issues.
In 2009, the investible universe was modified, giving favourable consideration to programmes to reduce greenhouse gases, the protection of biodiversity, the use of clean technologies, the involvement of suppliers and protection of minorities in the workforce; and, unfavourably, the involvement in the arms sector, the breach of anti-trust rules, accounting fraud and discrimination in the issuance of loans. There are no specific policies in place regarding exercising voting rights in companies belonging to the funds or subsidiaries.
In order to guarantee that management choices correspond to the ethical principles stated above, an autonomous Sustainability Committee has been set up, independent of Eurizon which is represented by a single committee member. Composed of professionals of heterogeneous extraction with significant experience in the various areas of social responsibility (bioethics, alternative energy sources, corporate governance, law, medicine, environment and equal opportunity), the Committee steers the fund management and formulates strategies to resolve key CSR issues.
CommunityThe International Ethical Equity Fund and the Ethical Bond Fund Management Regulation provides for the financing of projects and initiatives of a humanitarian nature through devolving a part of the management commissions, equivalent to 0.01% of the overall average daily net worth in each fiscal year. Those who invest in the Ethical Bond Fund may also contribute a part of the income placed in payment by the Fund itself to charitable associations. In 2009, 40,000 euro were allocated for the Abruzzo earthquake victims and 2,500 euro to the ADMAIORA non-profit organisation, to protect women. Eurizon Capital, as per a consolidated practice, donated 850 euro to the non-profit Opera San Francesco per i Poveri Foundation after raising money from its own employees.
Eurizon Capital SGR adhered to the transparency guidelines issued by Eurosif, a pan-European non-profit organisation that encourages socially responsible investment practices and corporate governance best practices. Eurizon Capital undertakes to promptly supply accurate and adequate information to permit the parties involved, and especially customers, to understand the policies and processes adopted with regards to socially responsible investments.
Eurizon Capital, among its institutional customers, manages three sub-funds of traded pension funds managed according to socially responsible criteria and two SICAVs according to socially responsible criteria. Abroad, the Hungarian CIB Bank’s Alternative Energy Fund is deserving of mention; it is an indexed fund linked to the DAX Global Alternative Index, whose investible universe contains the principal 15 producers of renewable energy. The fund’s assets amount to 7.5 million euro.
In 2009, Intesa Sanpaolo, through Eurizon Capital, was elected President of UNEP FI’s (United Nations Environment Programme Finance Initiative) Asset Management Working Group and to UNEP FI’s Executive Committee’s Presidency of the Investment Commission.