The sustainable fund portfolios of Popcoin, Bankinter’s digital investment manager, achieve a return of up to 16% in 2021
The portfolios are part of the environmental arm of Bankinter’s new Sustainability Plan 2021-2023 and comprise funds from managers who observe environmental, social and good governance criteria.
Sustainable funds are becoming increasingly popular among investors.
Popcoin, Bankinter’s digital investment manager, launched its first sustainable portfolios in April to invest in funds from the world’s leading management companies that observe environmental, social and good corporate governance (ESG) criteria. A little more than half a year after their launch, these portfolios have reported a return of up to 15.5%.
The portfolios combine active management and more cost-efficient index management, with global geographic exposure. Each portfolio includes approximately a dozen funds, depending on the profile that the investor has chosen according to their appetite for equities: conservative, moderate and dynamic. The Global Dynamic profile portfolio recorded a return of 15.5% in 2021, while the Global Moderate profile has appreciated by 11.1% since its inception and the Global Conservative has risen by 8.01%.
The Bank has found that investor demand for such sustainable products is growing, in line with the general trend of fund investment.
Popcoin’s range of sustainable portfolios forms part of the environmental arm of Bankinter’s new Sustainability Plan 2021-2023, which is looking to enhance the range of sustainable products and services on offer. The Bank’s product range already includes a selection of own sustainable funds, while offering a bespoke option for investors who prefer to invest in securities that champion sustainability.
Periodic review
The portfolios are picked by Bankinter’s Analysis Department, which has been allocating fund portfolios for 15 years. It reviews these portfolios at least once a month, or more often whenever a market event renders a review advisable. It adheres to a sustainability risk integration policy when selecting investments and making investment decisions, meaning that the selected collective investment institution universe applies the most appropriate integration strategies (exclusion, best in class, best efforts, engagement etc.), or a combination of them depending on their characteristics.
The portfolios follow a combination of financial and non-financial (ESG) criteria and invest only in collective investment institutions that state their adherence to ESG criteria. All of the selected funds belong to top-level managers who have signed the PRI (Principles for Responsible Investment promoted by the United Nations) and have proven experience in the field of sustainability.