ODDO BHF Polaris fund range now includes a significant ESG approach
PARIS, FRANFURT, DÜSSELDORF, LUXEMBOURG, 15.04.2020
The Polaris funds are ODDO BHF AM's longstanding traditional funds, managed in Frankfurt by a stable and experienced team that has been through many different market phases since 20051. These four diversified funds, with risk profiles adapted to different types of investors, now formally integrate ESG criteria into their investment process.
The ODDO BHF Polaris fund range, with 4 or 5 stars2, is mainly invested in listed international equities and bonds, selected for their robustness and the quality of their fundamentals. With €3 billion of assets under management as of 31 March 2021, it has a 15-year track record1, demonstrating the value of the stock selection process which we believe is at the heart of alpha generation.
With a Morningstar sustainability rating of 4 or 5 globes3, ODDO BHF Polaris Moderate, ODDO BHF Polaris Balanced4, ODDO BHF Polaris Dynamic4 and ODDO BHF Polaris Flexible exclude more than 20% of their investment universe (MSCI ACWI index) based on rigorous ESG criteria. In addition, at least 90% of the securities in the portfolio are rated according to non-financial criteria. In line with ODDO BHF AM's sustainable investment policy, the four funds also exclude companies that do not comply with the United Nations Global Compact Principles. With the aim of obtaining an ‘A’ rating, the lowest-rated companies on the MSCI5 scale are also excluded. Finally, the systematic dialogue with the companies in the portfolio allows the portfolio managers to ensure the ESG progress of the funds.
"The explicit integration of ESG criteria in the selection process of the ODDO BHF Polaris funds further strengthens our sustainability profile. We believe that well-managed companies with responsible practices can outperform over the long term," says Prof. Dr. Jan Viebig, CIO ODDO BHF AG and Head of Portfolio Management ODDO BHF TRUST, responsible for the Polaris fund range.
"We are convinced that taking ESG criteria into account in the investment process creates value for our clients. From now on, 52% of our assets in open-ended funds include ESG criteria at ODDO BHF Asset Management and we are delighted with this," adds Martina Macpherson, Head of ESG Strategy for Asset Management and Private Equity at ODDO BHF AM.
1Inception date of ODDO BHF Polaris Moderate
2Morningstar™ rating as of 31/03/2021, Morningstar categories: ODDO BHF Polaris Moderate **** (EUR Cautious Allocation), ODDO BHF Exklusiv Polaris Balanced ***** (EUR Moderate Allocation - Global), ODDO BHF Exklusiv Polaris Dynamic ***** (EUR Aggressive Allocation), ODDO BHF Polaris Flexible *****(EUR Flexible Allocation)
3Morningstar Sustainability score as of 31/03/2021. The rating measures the sustainability performance of a fund's portfolio holdings, based on ESG criteria. ODDO BHF Polaris Moderate 4 Morningstar Globes, ODDO BHF Exklusiv: Polaris Balanced 5 Globes, ODDO BHF Exklusiv: Polaris Dynamic 5 Globes and ODDO BHF Polaris Flexible 5 Globes. Morningstar sustainability globes: © Morningstar. All rights reserved. Sustainability Score as of Dec. 31/2020, Sustainability Rating as of Dec. 30/2020. Sustainalytics provides company-level analysis that is used in the calculation of the Morningstar Sustainability Score
4sub-funds of the FCP ODDO BHF Exklusiv.
5MSCI ESG : MSCI ESG rating as of 19.02.2021 | Rating scale: AAA to AA= Leader (A company leading this industry in managing the most significant ESG risks and opportunities), A to BB= average (A company with a mixed or unexceptional track record of managing the most significant ESG risks and opportunities relative to industry peers). B to CCC = laggard (A company lagging its industry based on its high exposure and failure to manage significant ESG risks).
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