Impact investing is the tip of the iceberg when looking at ESG criteria, Elena Tedesco says in an interview with finews.tv.
Concretely, you are trying to fulfill two promises. You want to get a financial return on your investments while having a positive impact on society, says Vontobel Asset Management portfolio manager Elena Tedesco in an interview with finews.tv.
The framework for impact investment comes under the UN's 17 sustainable development goals (SDGs), says Tedesco. And, according to the Swiss government website, the 169 targets form the core of 2030 agenda.
Thematic Investments
An important investment theme are assets in sustainable cities or «Smart Cities» that use, for example, new building materials that save energy, improve heating and cut CO2 emissions, the portfolio manager adds. Mobility also plays an important role in smart cities, whether it involves the continued adoption of electrically powered vehicles or new trains.
A further theme is health and healthcare. Among other aspects, a key aspect of that theme is the availability of medicines. Tedesco also points to the fact that investors don't have to reckon with lower returns with impact investing, as is often thought to be the case.
Up and Coming
Long-term comparisons with traditional ecological investment funds shows that impact investing strategies do not necessarily do worse. «Some are of course better and others are worse», says Tedesco. Impact investing is up and coming and that shows through in the market numbers. About four years ago the volume of investments was about 10 billion Swiss francs in Switzerland but it has grown to 40 billion on the meantime. «The impact investing market has quadrupled», Tedesco emphasizes.
She has been with Vontobel Asset Management since June 2021 and is a portfolio manager in the Listed Impact Team, responsible for the management of the Global Impact Equity portfolio. Before that, she was co-portfolio manager at Federated Hermes where she co-managed ESG strategies in global emerging markets. Tedesco holds a Masters in European Economic Affairs of the College of Europe and a degree in economics and management while also having an Investment Management Certificate (IMC). She is also a Chartered Financial Analyst.
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