MEAG "Nachhaltigkeit" fund

In October 2003 MEAG, Munich Re's asset manager, launched the MEAG "Nachhaltigkeit" fund. This is the first of MEAG's retail funds that both applies a conventional rigorous investment process and takes account of sustainability criteria. The funds are primarily invested in shares that feature in the Dow Jones Sustainability World Index (tobacco, alcohol, gambling, armaments and firearms thus being excluded).

On average, MEAG's "Nachhaltigkeit" fund contains roughly 100 shares in various countries and sectors. The security of this investment is enhanced by the mix of different-sized firms in various sectors and countries. Established firms in the fund include Siemens, Deutsche Bank, the US Citigroup bank, Johnson & Johnson as a supplier of medical products, and the pharmaceuticals company Pfizer, as well as Munich Re, which meets the strict sustainability criteria.

The fund management invests between 10% and 20% of the fund volume in so-called innovators. These are mainly small firms which are not included in the Dow Jones Sustainability Index. In order to be included in the fund, they too must operate on sustainable basis. Examples of such firms include producers of wind power or manufacturers of water-processing plants. Innovators offer particularly good opportunities for growth, as they operate in future-oriented markets.

The fund also has the goal of meeting the increased and still growing interest of private investors in sustainable investments. More and more investors are realising: investing responsibly does not mean a reduction in returns, security or liquidity. In this connection, MEAG uses the skill and know-how in sustainable investments which it has acquired from working together with Munich Re experts.