Sber presents socially responsible investment instruments at Investment Literacy online festival

Oct 11, 2021

Sber participated in the Investment Literacy online festival (part of World Investor Week), organized by the Association for the Development of Financial Literacy (ADFL).

Addressing the “Green Finances. Principles of Responsible Banking” round table was Khalid Dianov, head of the innovative Ecosystem, Innovation, and Sustainable Development Directorate of Sberbank’s Wealth Management Unit. Dianov discussed the socially responsible investment instruments facilitating the achievement of the UN SDGs.

As Dianov noted, Sber began an ESG transformation in 2020 that has already helped it develop the competencies necessary to drive the green transformation for both corporate and individual clients.

The speaker paid particular attention to responsible finance strategies, citing as examples the Dobrynya Nikitich open-end fund (a mutual fund by Sber Asset Management with a high ESG rating according to ACRA), as well as the Responsible Investment exchange-traded fund and fiduciary management strategy (funds are invested in shares of companies adhering to ESG principles).

Sber Private Banking simultaneously offers its clients three ESG indices: the Solactive FoodTech Index, which consists of shares in companies that produce alternative protein and develop new technology for the storage and delivery of food items, the Women Impact Europe Index, which contains shares in European companies selected based on Sber Private Bankings’ own gender balance assessment metrics, and the Circular Economy Index, which includes shares in global companies with a market capitalization of USD 10 bn or more and high daily trading volumes, which adhere to a closed-loop economy. A fourth strategy will be launched by the end of the year – the Green Transition Index, which contains shares in companies that are reducing their carbon footprint and work in the green energy sector.

The expert session titled “Passive Income and Investing in Dreams” also included Dmitry Postolenko, head of fixed income management at Sber Asset Management, who discussed current investment trends, the advantages of a passive income and the way it differs from a pension, how to secure a passive income, and how to choose the right issuers to invest with. Postolenko also explained how to hedge risks by investing in foreign companies. Particular attention was paid to current ruble and dollar investment strategies. The speaker brought up the example of the Dividend Shares strategy, emphasizing the fact that the Russian market continues to trade at a significant discount compared to its international equivalents, while the expected dividend yield of the Russian equity market in 2021 exceeds that of other countries. In the debt market, the yields of strategies investing in ruble bonds outpace inflation and deposit yields in the long-term.

Concerning long-term savings (particularly when it comes to securing an income in retirement), Postolenko mentioned a new approach for Russia – target-date strategies, which allow savings up to a certain date, e.g., for 10, 15, or 20 years. The speaker explained how to limit portfolio losses by investing in foreign companies, with the help of automatic hedging algorithms. As an example, he mentioned the First Hedge Fund fiduciary management strategy.

World Investor Week is an information campaign initiated by the International Organization of Securities Commissions (IOSCO) to raise financial literacy levels. In the framework of WIW, ADFL is holding an investment literacy festival, combining various events from the business program. The event is aimed at improving finance culture, the development of financial education at all levels of education, and an exchange of research and practical experience, ideas, and opinions on the development of the population’s investment literacy.