Banque de Luxembourg Investments S.A.: 'Sustainability doesn't stand still'

Banque de Luxembourg Investments S.A.: 'Sustainability doesn't stand still'

January 7, 2019

ESG-investing
banque-de-luxembourg-investments-sa-sustainability-doesnt-stand-still_1_YPdnFk.jpg

In its investment approach, BLI - Banque de Luxembourg Investments S.A. regards equity investments as long-term participations in companies. That is why BLI fund managers constantly seek first-class companies that enjoy clear competitive advantages, that are highly profitable, and that are able to generate recurrent free cash flow. Such companies are able to achieve long-term added value for their shareholders. For our fund managers to develop a comprehensive view of the companies they are considering, they consider non-financial criteria in addition to financial research. Since today comprehensive quality ESG research available, BLI has in recent months set guidelines for integrating non-financial criteria into its investment strategy. Here are four questions for Thierry Feltgen and Julien Jonas of BLI’s ESG team.

In its investment approach, BLI - Banque de Luxembourg Investments S.A. regards equity investments as long-term participations in companies. That is why BLI fund managers constantly seek first-class companies that enjoy clear competitive advantages, that are highly profitable, and that are able to generate recurrent free cash flow. Such companies are able to achieve long-term added value for their shareholders. For our fund managers to develop a comprehensive view of the companies they are considering, they consider non-financial criteria in addition to financial research. Since today comprehensive quality ESG research available, BLI has in recent months set guidelines for integrating non-financial criteria into its investment strategy. Here are four questions for Thierry Feltgen and Julien Jonas of BLI’s ESG team.

In July 2017, BLI - Banque de Luxembourg Investments S.A. signed the United Nations’ Principles for Responsible Investment (UN PRI). What made BLI take this step, and what is your assessment so far?

Thierry Feltgen (TF): BLI - Banque de Luxembourg Investments didn’t wait for summer 2017 to take an interest in sustainable investing. Since 2008, BLI has been offering BL-Equities Horizon, a fund that focuses on responsible investment and sustainability. Until October 2018, fundamental sustainability research as well as the definition of the fund’s investment universe were outsourced to an external firm, but this arrangement failed to meet our quality standards for the long term.

In October 2018, the structure of the fund has been reviewed. It is in the process of being relaunched as BL-Sustainable Horizon: while it remains a pure socially responsible and sustainable fund, the big difference is that going forward

Related posts