Management of investments – Pooling our know-how for sustainability
MEAG pools its own expertise in capital management with that of the Group and of external partners. The aim is to generate long-term returns and thus achieve above-average performance for investors.
Our investment strategy is based on the principles of sustainability. MEAG can draw not only on Munich Re’s extensive experience in the area of research and assessment of risks but also on that of external rating agencies and research institutions. A stringent investment process and exceptional capital market experience are features of its portfolio management geared to sustainability. 80% of Munich Re’s investments in equities and bonds follow the principles of sustainable investment.
Top-down approach and asset-liability management
The investment approach adopted by MEAG’s experts is also geared to long-term, above-average performance. Depending on the specific investment category and focus, the specialists put together fund portfolios based on a » top-down approach. Taking into account micro- and macroeconomic factors as well as capital market data, MEAG decides on » allocation in individual countries and sectors of industry. Some 70 experienced portfolio managers are in charge of implementing investment decisions and selecting attractive securities. All involved strictly adhere to » asset-liability management criteria and integrated risk management. We thus jointly ensure that we can always fulfil our short- and long-term obligations to our clients.
Sustainable investments – Our General Investment Guidelines
As early as 2002, we decided that our investments in shares and bonds had to follow certain sustainability principles. In 2005, this requirement was incorporated in our Group-wide General Investment Guidelines (GIG) and extended to government bonds. We decided that at least 80% of corporate investments in shares, government and corporate bonds should meet sustainability criteria. Furthermore, as from 2011 the asset portfolio was extended to include investments in RENT (Renewable Energies and New Technologies) and the asset class “real estate” (construction year with effect from 1.1.2010).
Excellent fund management
Given its size and independence from banks, MEAG also obtains detailed information from international investment companies as well as low transaction fees. For this, MEAG received yet another award from XTP Transaction Partners for “Best Execution” in the equity section of its funds. MEAG is attested as offering very good, and thus well above-average, performance quality in terms of transaction cost analysis.
