Moving money to meaning:
Sonnenberg Wealth Managements Edith Aldewereld explains why development investments are a compelling opportunity for affluent investors seeking to combine financial return and impact:
You benefit from a portfolio that:
All our partners have taken the step to get out of their comfort zone to become an Independent Wealth Manager, putting the client’s interest first. We have all taken this step, because we felt that
our personal values became increasingly important. That is why we have taken this responsibility: to put our values and our clients first.
And this is what we share with our clients: a commitment to values and taking responsibility for acting on them. When you are independent you can become truly innovative.
We have clients who are consciously working, based on their values, on improving their company and staff in alignment with their views on a better and sustainable world. This is because they consider what legacy they would like to leave for their next generation, how they can improve their business and at the same time they care about the impact the company has on the environment, staff and resources. That made us think.
What can we do in our profession to make a positive improvement, a positive impact on society?
What legacy and values would we like to pass on to our next generation?
That is why we have created our Concept ‘Moving Money to Meaning’.
First, it is possible to invest your wealth in a sustainable way and at the same time realize competitive financial returns for yourself. Secondly we would like to give our clients the opportunity to invest their wealth and to create wealth in line with their personal values. There is no obligation. It is merely an option. We have realized, however, that not many people are aware of these options. With our Concept ‘Moving Money to Meaning’, we have created a concept that enables you to realize your personal vision. The carefully selected building blocks contain the best in class sustainable investments. The flexible set up of the building blocks enables us to create tailor made portfolios that fit the individual interests of our clients. Due to the low correlation of for example Impact and Development Investments, this concept creates diversification and a reduction of your risk compared to classic investment portfolios.
In our Classical Investments we use our value based oriented top down investment strategy. In our Sustainable concept, we add an additional layer that positively rewards company strategies on their efforts to
implement ESG (Environmental, Social and Governance) criteria. It is not only about generating returns, it is about how the company management generates returns. The outcome is our Sustainable Investment Universe.
And this universe is the base for our equity and bond investments. They align with the various fund providers that we select on the basis of ‘Best in Class’ and/or the Engagement and Execution of Voting Rights.
We like to motivate in a positive way. That is why we have a preference for funds that actively engage with the management of companies, by using their engagement and voting rights, to help and advise them to develop
their ESG strategy.
So as an investor, you have the opportunity to directly reward companies that actively engage with ESG criteria. So you actively engage to change the future of our society positively!
Can you imagine how it would feel if you invest for your own benefit and on top of that also for a social and moral benefit? That your investments contribute to a better society and planet, taking care of our legacy towards our future descendants? We can because we do. It changes your feeling in a positive way towards your financial ability, because you are able to realize a positive impact that goes far beyond your own horizons.
There are more and more funds, Exchange Trades Funds (ETF’s) and other opportunities that are now becoming available for private investors, which were only accessible for institutional investors in the past. We carefully select for you the best in class funds and opportunities.
There are different investment opportunities in the sustainable investment world that offer you diversification opportunities as compared with the traditional asset classes. Impact and Development Investments are an
example of this. Impact investments give you the opportunity to invest in companies and organizations of social entrepreneurs with the intention to generate a measurable, beneficial social or environmental impact
alongside a financial return.
We like Impact Investing opportunities for several reasons:
There are different possibilities, in liquid and less liquid fund opportunities. The addition of these asset classes are always included based on the personal preferences of our clients.
We are constantly meeting with fund providers and professional asset managers to make sure we find the best investment solutions for our clients. One of our strategic partners in the sustainable
investment area is the company responsAbility Investments AG. With a 14-year track record and USD 3.2 bn of assets under management, responsAbility is one of the world’s leading asset managers in
the field of development investments.
ResponsAbility-managed funds invest in 550 companies in 97 countries, for example in Equitas Microfinance, India’s second-largest microfinance institution, committed to promoting financial inclusion. Equitas provides microloans to individuals with a maximum income of USD 2’400 per year and per household. To qualify for a loan, borrowers join together to form groups with five members. Equitas actively educates clients regarding financial planning. ‘Promoting financial literacy’ is how the company describes this process. They encourage clients to use a bank account for their transactions to help them establish an official financial track record for the future.
Equitas also supports the community – running food stores and schools where children can obtain a solid and affordable education, which is vital for their future success.