Finreon SGKB Tail Risk Control (World) ESG

Finreon SGKB Tail Risk Control (World) ESG measures the risk of major crashes on the equity markets systematically and on a daily basis using a variety of market factors and thereby controls the market exposure to the sustainable base portfolio from 0% (for high measured risks) to 100% (for low measured risks) depending on the measured risk regime. The hedging is done with liquid index futures.

The equity quota represents a sustainable and broadly diversified portfolio. The starting point for the stock selection is the sustainable global universe (Equities World ESG Leaders), which contains the companies with the best ESG ratings within their sectors (best-in-class approach). In addition, companies with significant activity in controversial business areas are excluded. The overall risk corresponds in the long term to a benchmark of 50% World ESG Leaders equities and 50% SOFR. The strategy is suitable for investors who would like to participate in the development of the global sustainable equity market, but with a risk control to avoid large substance losses.