Today, mainly funds, certificates and other products are recommended and sold to investors. The former advisors have transformed into pure sellers. Whereas with a fund, many investors put money together in a pot in which investments are then bought in the name of the fund, with direct investments you can invest in shares or bonds in your name alone. In other words, you can directly hold equity securities with which you participate in the long-term success of the company. This was the original form of the investment, before the financial industry began to package investments primarily to increase margins.
Do you know the feeling of looking at an investment report, seeing many curious product names and therefore having no idea how your money is really invested? Often it is not even clear at first glance how heavily a financial product is invested in equities, whether it relies on good quality or speculative companies, whether other investments such as foggy and risky hedge funds or complex structured products are used. Direct investments ensure transparency for you; you can see and understand which specific investments are in your portfolio and whether they meet your specifications and needs. This gives you the opportunity for constructive discussion at the same level with your asset manager.
The transparency of direct investments ensures that the portfolio only contains investments that correspond to the quality which the asset manager strives for. If, for example, only bonds of good investment quality were to be held, you would immediately notice from the investment report if there were shares from an underperforming company or country discussed in the press in the portfolio. You are in charge; this is massively restricted in case of financial products because you cannot see where the money is ultimately invested. Compared to products, direct investments are liquid and there are no redemption periods. In addition, financial products often involve risks that are difficult for the non-professional to recognize, either because derivatives are used or because the fund has the right to lend securities (securities lending and borrowing). If the institution to which securities are lent out goes bankrupt, a total loss may incur.
Our direct investment policy forms the foundation for a consistent and transparent integration of our and your sustainability criteria. We understand sustainability comprehensively and check our assessment with two leading external sources on the one hand and with a well-known ethicist on the other. From this, we put together a sustainable ensemble of shares. However, since sustainability contains a subjective element and individual criteria may even contradict each other, we will be happy to assist you in defining your individual sustainability requirements on request. With our direct investments, we can then implement them precisely!