Sustainability
pays off.


With the Sustainable Hidden Champions Equity Fund avesco AG fulfils investors‘ wish for a sustainable and at the same time financially attractive investment in small and medium-sized market leaders.


learn more

avesco method

avesco's proprietary sustainability method has been developed over several years in interaction with research and practice, and is now applied in in-house analysis. The method aims to translate avesco's sustainability requirements into a specific analysis process to examine the sustainability of investments. Sustainability is considered holistically: the economy, ecology, societal issues, risks and governance are included and evaluated in the analysis.

The research process is divided into several steps that enable avesco to take a holistic view of investments and their sustainability:

step one

The initial focus of the analysis is on intensive media screening, which is intended to detect conspicuous features in the company's past. If a company increasingly violates the four areas of the UN Global Compact (human, labour, environment and anti-corruption), it will not be included in the fund. The first step is also to examine whether the company is investing in nuclear power or weapons. We also categorically exclude such industries.

step two

The second step entails the actual analysis, which encompasses various aspects of economic, ecological and societal sustainability. This analysis step is supported by various analytical tools and determines the extent to which potentials within a sustainability dimension (economy, ecology, societal affairs) are destroyed, maintained or expanded.

step three

In a further step, so-called governance aspects are examined. These include issues such as adherence to laws, compliance and shareholder rights. Discrepancies determined at this point can exert a negative impact on the company's sustainability rating.

step four

Finally, a risk analysis is performed in order to aggregate any risks. Risks can include all kinds of risks: from environmental risks through to technology risks and specific market risks.

step five

As a matter of course, this intensive research can generate queries that secondary data might be unable to answer. For this reason, an integral part of the analysis is to conduct a detailed telephone call with each company. In this way, further information can be obtained and queries clarified.

step six

The final step in the analysis process is to aggregate and evaluate the information. Conducting the evaluation in accordance with the triple control principle is particularly important to us. This is preceded by an intensive discussion of any controversial aspects. This step aims to objectify the assessment and make the sustainability assessment more valid. The evaluation then translates a selective rating into "sustainability classes", which follows the scheme of energy efficiency classes.

step seven

If a company is added to our product portfolio, it is then included in media monitoring. This daily monitoring informs the analysts of any relevant news about the company so that they can respond adequately to events. The subject of engagement is also very important to us. Engagement describes the process of becoming active as an investor and introducing specific sustainability issues to the company. This can take the form of personal discussions, joint projects and voting at general meetings.

Hidden Champions

Companies in which the SHC Fund Invests are mostly small to medium-sized, highly specialised companies that are continental market leaders in their niches or rank among the top three in the world. Here you can find a selection of the 59 companies held at present:

1990

European
Hidden Champions

1533

German, Austrian and
Swiss Hidden Champions

145

listed on the
stock market

59

companies with a
ranking of at least C

  • Uzin Utz AG

    This Ulm-based floor composite manufacturer was recently awarded the Blauer Engel prize.
    Read more (de)
  • CEWE Stiftung & Co. KGaA

    This Oldenburg-based photo printing provider assumes responsibility with a comprehensive sustainability management system.
    Read more (de)
  • UmweltBank AG

    Over the past 20 years, the green bankers have financed more than 22,000 innovative environmental projects – for the benefit of people and nature.
    Read more (de)
2.067

million €
Ø sales

7788

average number
of employees

5%

share of women in
Management Board

18%

percentage of women
on the supervisory board

-53%*

Co2 intensity
(emission in t/sales)

-81%*

water intensity
(consumption in m³)/sales)

25%

Signatory to the
UN Global Compact

*Compared to global equity market (MSCI World)

Questions, answers and key issues

Here you will find some of the most frequently asked questions, the answers to them, and further information about the Sustainable Hidden Champions Equity Fund (SHC):

What are sustainable investments?

According to Germany's sustainable investment industry association, the Forum Nachhaltige Geldanlagen (FNG), sustainable, responsible, ethical, societal and ecological investments and investment processes that include the impact of environmental factors, societal responsibility and good corporate governance in their financial analysis are referred to as sustainable investments.

In contrast to the three conventional investment criteria – profitability, liquidity and security – sustainability forms a further aspect of sustainable investments.

Why sustainable financial investments?

avesco is convinced that, given limited resources, no alternative exists to sustainable business management. In some industries, such as food, fair textiles etc, some suppliers have already come quite a long way.

In other sectors such as finance, however, the topic is not yet as evident. This is what avesco and some other pioneers in the financial industry aim to change. For the future of all of us, it is crucial that international money flows are invested in sustainable business models. Let us make a start together.

Don't sustainable financial investments mean lower returns?

This frequently-posed question cannot be answered unequivocally. Depending on the investment, products also exist in the broad spectrum of types of investment that actually generate slightly lower returns. However, investors in these areas deliberately wish to set different priorities, are convinced that their portfolios do not support child labour or fossil fuels, for instance, and ideally aim to generate societal benefits in addition to a financial return.

avesco's impact investing strategies reflect our belief that generating financial returns as well as creating societal and environmental benefits are not only compatible but also mutually supportive aims. Integrating societal and environmental performance indicators into the decision-making process helps reduce risks, and provides further opportunities for investors to align their resources with their values. The success of the Sustainable Hidden Champions Equity Fund with its above-average performance shows that sustainability also pays off financially.

SHC's investment objective and investment strategy

The objective of the Sustainable Hidden Champions Equity Fund is to generate long-term asset growth by investing in small and medium-sized enterprises (small and mid caps) with a sustainable business model. The fund invests exclusively in European equities of listed companies, particularly from the Germany, Austria and Switzerland region, which have a rating of at least C on the basis of the avesco sustainability rating and are predominantly regarded as market leaders in their niche – so-called hidden champions. The weighting of the securities is predominantly systematic, taking into account the parameters of volatility and trading volume. Investments can also be realised in IPOs in order to make a contribution to the direct financing of sustainable business models and innovations offering great potential for value appreciation.

What are the risks?

Investing in equity funds entails not only opportunities to realise gains but also the risk of loss. Past performance is not a reliable indicator of future performance. The value of investment units and any income they generate are not guaranteed. A unit's value may fall as well as rise, as a consequence of which investors may be unable to recover the amount they have originally invested. Before making an investment decision, investors should take note of the risk description in the prospectus and the key investor information. Investment advice tailored to investors' personal circumstances can also be obtained from a financial adviser. This website is for information purposes only and does not constitute an offer or solicitation to buy or sell any securities or other financial instruments or investment advice.

How has the SHC performed?

Performance of the Sustainable Hidden Champions Equity Fund (I) since full investment from 1 April 2015 to 31 May 2019:

How long has the SHC fund existed?

The equity fund authorised for public sale has been in Class I (minimum investment EUR 100 thousand) with WKN A12BKF and ISIN DE000A12BKF6 since 5 January 2015. On 18 March 2016 Class R followed with a minimum investment of EUR 25 with WKN A1J9FJ, DE000A1J9FJ5.

What is the volume of the SHC?

The Sustainable Hidden Champions Equity Fund had around EUR 9.6 million invested at the end of May. avesco manages a special fund of the insurance company Die Bayerische with a volume of around EUR 54 million applying the same investment strategy.

How does the SHC (I) compare to the benchmark?

Key figures compared to the benchmark CDAX since full investment from 1 April 2015 to 31 May 2019:

avesco SHC (I)

  12,2 %
Performance
  • 13,5 %
  • Volatility
  • 0,93
  • Sharpe Ratio

Benchmark CDAX

  2,7 %
Performance
  • 15,3 %
  • Volatility
  • 0,19
  • Sharpe Ratio
Notes on performance

Past performance is not a guarantee of future income. The gross value performance (BVI method) takes into account all costs incurred at fund level (e.g. the management fee). Additional costs may be incurred at customer level (e.g. custody account fees, commissions and other fees). For example, with an investment sum of EUR 100,000 and a five-year investment period, additional costs of around 0.4% are incurred for purchase and portfolio management.

Master data
Name of unit classes
avesco Sustainable Hidden Champions Equity - I
avesco Sustainable Hidden Champions Equity - R
WKN/ISIN
A12BKF / DE000A12BKF6
A1J9FJ / DE000A1J9FJ5
Appropriation of earnings
distributing
distributing
Investment category
Equity funds small/mid caps EU, focus DE, AU, CH
Equity funds small/mid caps EU, focus DE, AU, CH
Fund management
avesco Financial Services AG
avesco Financial Services AG
Custodian bank (custodian)
DONNER & REUSCHEL Aktiengesellschaft
DONNER & REUSCHEL Aktiengesellschaft
Management company (KVG)
HANSAINVEST Hanseatische Investment-GmbH
HANSAINVEST Hanseatische Investment-GmbH
Launch date
2015/01/05
2016/03/18
End of fiscal year
12/31
12/31
Fund currency
EUR
EUR
Distribution licence
Germany
Germany
Initial issue price
EUR 100
EUR 100
Minimum amount of investment
EUR 100,000
EUR 25
VL savings plan eligible
-
Ja
Fees
Issue premium
0 %
bis zu 5 %
TER (= running costs)
1.50 % p.a.
2.06 % p.a.
thereof administration fee
1.10 % p.a.
1.65 % p.a.
Documents in English
2 Pager
Manager report
Documents in German
Factsheet
Key investor information
Sales prospectus
Semi-annual report
Annual report
Terms of use

Source of all data, unless otherwise stated: avesco Financial Services AG. The valid sales documents contain detailed information on the individual risks associated with the investment, and form the basis for the purchase of units in this fund. In this publication you will find only information that constitutes product-related information and not investment recommendations orientated to a client's personal circumstances, in particular not in the form of individual investment advice. Past performance is not a reliable indicator of future performance. All data contained in this publication are provided by external data providers. We would like to point out that errors may occur during data recording and transmission for which no liability can be accepted. The up-to-date status of the various fund data depends on the data delivery of the respective capital management company and can consequently differ from the date on which this results page is consulted.

FNG Seal

The Sustainable Hidden Champions Equity Fund has been awarded two FNG stars for its sustainability approach.

The seal of the Forum für nachhaltige Geldanlagen (FNG) is regarded as the quality standard for sustainable investment funds in the German-speaking market. The award recognises a stringent and transparent sustainability approach whose credible application is verified by independent audit. The SHC Fund ranked particularly well in the areas of "institutional credibility", "product standards" and "transformation & impact".

Eurosif Transparency Logo

The Sustainable Hidden Champions Equity Fund carries the Eurosif Transparency Logo.

The European Transparency Logo for Sustainability Funds indicates that avesco undertakes to provide correct, appropriate and timely information in order to enable interested parties, particularly clients, to understand the respective fund's sustainable investment approaches and methods.

Detailed information on the European SRI Transparency Code can be found at www.eurosif.org. Information on the sustainable investment policy and its implementation in the Sustainable Hidden Equity Fund can be found at: www.avesco.de. The European SRI Transparency Code is managed by Eurosif, an independent organisation.

The European SRI Transparency Logo reflects the fund manager's engagement as described above. It is not to be understood as an endorsement of a particular company, organisation or individual.

   

The heads behind the SHC

At avesco, a dedicated team looks after the success of the

Sustainable Hidden Champions Equity Fund,

and consequently also your success.

team_foto
Oliver N. Hagedorn
Common sense, responsibility, future-oriented

Our mission is to provide investors in the German, Austrian and Switzerland region with access to sustainable investments on the basis of responsibility and common sense.

Oliver N. Hagedorn Founder and CEO
"It's crucial to move money into sustainable business models."
Christian Berg Senior Portfolio Manager
"As the father of four children, sustainability is a natural concern."
Dr. Anil Gürtürk Senior Analyst Sustainability
"...because sustainability always means added value."
Jana Brunner Junior Analyst Sustainability
"Awareness of sustainable investing is growing."
Stephan Niedrig Portfolio Manager
"If you have understood and do not act you have not understood."

Start now!

avesco provides investors with responsibility and common sense in the German, Austrian and Swiss region with access to sustainable investments.

We will be happy to arrange a meeting with you at any time.

give us a call

Phone: +49 (0)30 288767-0
Fax: +49 (0)30 288767-20

address

avesco Financial Services AG
Mohrenstraße 34
D-10117 Berlin

write to us

Email: shc@avesco.de
Marketing: marketing@avesco.de

office hours

Mon - Thu: 9 am - 6 pm
Fri: 9 am - 4 pm