Despite the simultaneous downturn in equity and bond markets in 2022 as well as the correction in private equity valuations in the second half of the year, interest in sustainable products remained high. A strong focus on securities issued by companies meeting environmental, social, or governance (ESG) criteria remained de rigueur for a rising number of investors.
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In June 2022, LGT launched its offering of portfolio advisory mandates in EMEA promoting environmental and/or social characteristics, providing customized investments for our clients based on their sustainability preferences. In 2022, there were further inflows into LGT’s portfolio management mandate "Focus Sustainability" in EMEA and since September, the strategy has been available through retail funds. In addition, we have expanded our offering of mandates promoting environmental and social characteristics by converting the portfolio management mandates "Classic", "Swiss Domestic" and "High Conviction" to be classified as Article 8 products within the meaning of SFDR.
To satisfy rising Asian investor demand, we launched the Sustainable Global Equity Fund that enriches our range of portfolio management mandates with a focus on sustainability. Clients who are interested in sustainability can choose from our Sustainable Balanced range, Sustainable Global Equity and Sustainable Investment Grade Bond mandates.
In the UK, LGT Wealth Management’s external financial advisors have had access to the Sustainable Model Portfolio Service since 2018 with themes such as renewable energy, battery storage, circular economy, and resource conservation. Given its strong focus on stewardship, LGT Wealth Management last year supported a record number of environmental and social shareholder proposals.
Private investors are often unaware of the sustainability level of their portfolio because they lack the necessary information. The LGT Sustainability Rating provides our clients with transparent information on the sustainability quality of their portfolio, which can help them to integrate sustainability factors when selecting their investments.
The Princely Strategy – open to clients looking to invest alongside the Princely House of Liechtenstein – retained its focus on environmental, social and governance factors, while addressing climate change through active ownership. For further details, please see the ESG Report of LGT Capital Partners.
In 2022, Philanthropy Advisory published a pioneering study on the Middle East together with the Cambridge Centre for Strategic Philanthropy, entitled "Giving in the Gulf Cooperation Council (GCC): Evolving towards strategic philanthropy". The study estimates philanthropic activity in the region at USD 210 billion annually and identifies an increased desire in the younger generation to engage philanthropically.