Ancoria introduces ESG criteria in the investment selection process

Ancoria Insurance
July 2021
Ancoria Insurance
Ancoria introduces ESG criteria in the investment selection process

At Ancoria we believe that, as long-term investors, accounting for environmental, social, and governance (ESG) risks and opportunities can help us manage risk better and provide sustainable value to our customers while helping create benefits for the society as a whole. This belief drives all our investment decisions and has been paramount in the design of our investment decision-making process.

ESG factors are usually non-traditional factors that can influence, and be influenced by, business activities. ESG factors affect investment returns through their impact on corporate financial performance and through the risks they pose to broader economic growth and financial market stability.

ESG integration is the practice of incorporating ESG information into investment decisions and analysis to help enhance risk-adjusted returns. This means that ESG-related factors that are material to the risk and return of the investment are considered alongside traditional financial factors when making an investment decision.

Market Commentary

So far, so good. Vaccination rates continue to rise across the globe, equity markets are posting fresh record highs, and of course, monetary and fiscal policies remain ultra-loose. US Equities took the centre stage for yet another quarter, rising more than 8%, followed by European and Asian equities. Government bonds rallied as expectations for an(other) inflation overshoot eased, while the risk premium that investors demand to hold risky debt has fallen spectacularly to record, or multi-year lows. The current narrative in financial markets looks favourable for every asset class, as investors are discounting a very high degree of accommodation for years to come. Volatility is now at a post pandemic low, despite the fact that option markets indicate that investors are willing to pay extra for protection against a tail event.

Ancoria's Top Performing Funds
(as at 30/06/2021)
Fund Name YTD % (EUR) YTD % (SEK)
High Dividend Sweden19.6420.36
Ancoria/Carnegie Russia19.2019.93
Real Estate18.2618.98
Ancoria/Carnegie Sweden16.6617.37
About Ancoria Insurance
About Ancoria Insurance
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