• Dynamic growth since spin-off from Evangelische
  Bank (EB) 5 years ago
• New funds improve access to ethically-sustainable investments,
  also for private clients
• Improved risk-return profile thanks to new EB ESG score and
  WIW concept

Kassel, January 23, 2024: The ethical and sustainable asset manager EB – Sustainable Investment Management GmbH (EB-SIM) intends to almost double its assets under management over the next seven years. The subsidiary of Evangelische Bank (EB) wants to further expand its position as one of the innovation leaders in the market for sustainable investment products. An innovation offensive, new investment products and the expansion of the customer base towards non-church investors and private investors should pave the way for this. EB-SIM will launch two new funds in the first half of 2024: a more flexible, equity-heavy version of the successful multi-asset fund, EB-Sustainable Multi Asset Invest (EB-SMAI), and an open-ended infrastructure special fund to give private investors a greater stake in the energy transition.

“The demand for investment opportunities that meet the highest ethical, social and ecological criteria remains high and will continue to grow in the coming years. Credible and reliable investment concepts based on clear and comprehensible criteria are in demand. EB-SIM has been one of the pioneers in this market for five years and would like to further expand this position,” says Dr. Oliver Pfeil, Chief Investment Officer and Spokesman of the Management Board of EB-SIM.

2 new funds planned for institutional and private investors

EB-SIM will launch two new funds in the first half of this year to make ethical and sustainable investments even more accessible to institutional and private investors. The EB-Sustainable Opportunities Fund (working title) is a more flexible version of the successful EB-SMAI multi-asset concept. Unlike its successful big brother, the EB-Sustainable Opportunities (working title) is not subject to any restrictions with regard to asset classes, regions or investment styles. The dynamic asset allocation enables a higher expected return and higher distributions for investors. At the same time, the aim is to achieve risk control that limits the volatility of the investment assets. This enables participation in positive market developments and hedging in risk phases.

Quadoro Erneuerbare Energien Europa (working title) is an open-ended infrastructure special fund to be launched by EB-SIM together with Quadoro Investment GmbH. The fund combines the broad expertise of EB-SIM and Quadoro Investment GmbH to enable investors to invest in the growth market of renewable energies. Investors benefit from investments in established technologies, broad diversification through different projects, project phases and regions as well as a high stability of value of the investments.

EB-SIM will offer the new funds to institutional clients and, via its wholesale distribution partners, also to private clients. Michael Hepers, Chief Customer Officer and Managing Director at EB-SIM, says: “With our new funds, we are broadening access to ethically-sustainable investments for all investor groups. We are thus underlining our position as an innovation leader and asset manager of the ESG generation. With the open-ended infrastructure special fund, private investors have the opportunity to participate directly in the expansion of renewable energies and make a contribution to the sustainable transformation of our society with their investments.”

5 years of EB-SIM – rise to become a leading sustainable asset manager

EB-SIM has grown dynamically since its spin-off from Evangelische Bank (EB) in December 2018. The company has increased its assets under management (AuM) by over 60% in the past five years, from EUR 3.7 billion to EUR 6.0 billion. EB-SIM has also attracted new investors beyond church investors. The proportion of non-church investors rose from 1 to 12 percent. The alternative assets segment recorded particularly high growth rates. Here, AuM has shot up from 67 to 759 million euros since the spin-off in 2018. The number of EB-SIM employees rose from 18 to over 80.

Joachim Fröhlich, member of the Management Board at Evangelische Bank, describes the spin-off as a great success: “The development of assets under management that EBSIM has achieved since December 2018 is above the BVI average. Our ambitious expectations have therefore been met. It was the right move – and not just for Evangelische Bank and EB-SIM. Above all, it was the right step for the customers, who are benefiting in an outstanding way from the further professionalization and the development of new asset classes. In just 5 years, EB-SIM has developed into one of the leading and most credible sustainable asset managers.”

Clear growth targets and expansion of the investment focus in the energy sector

EB-SIM, which specializes in ethically sustainable and impact-oriented investments, intends to build on its previous success and continue its dynamic growth in the coming years. The aim is to have assets under management of 10 billion euros by the end of 2030. It also wants to expand its customer base and open up further. At the same time, the proportion of non-church investors should be 40 percent, although EB-SIM is also aiming for further growth among church investors.

The plan is also to expand the investment focus in the energy sector in 2024. “The energy transition can only succeed if, in addition to wind and solar parks, investments are also made in renewable heat generation, energy efficiency, e-mobility and energy grids, for example. New investment opportunities are emerging in these growth areas, which we are tapping into for our investors,” says Dr. Bernhard Graeber, Head of Alternative Assets and Managing Director of EB-SIM. EB-SIM also has a new debt fund, EB Clean Energy Debt, which enables institutional investors to invest in the energy transition with debt capital
.

“Ethics, sustainability and investment belong together,” says Michael Hepers, Chief Customer Officer and Managing Director at EB-SIM. “The good financial track record of our product range speaks for sustainable investing and proves that a consistent focus on ethical, social and ecological criteria offers investors clear advantages in terms of risk and return. We want to make these advantages more accessible to other investors in future, not just church clients. Although we are part of the church network, we are expressly there for all investor groups.”

Values – integration – impact: EB-SIM’s WIW investment concept for a double return

EB-SIM will continue to strengthen its position as one of the innovation leaders in the market for ethical and sustainable investments. It is therefore continuously developing its WIW investment concept1 on the basis of scientific findings. This includes the consistent inclusion of values in the portfolio, the integration of sustainability criteria in the company valuation and the explicit impact orientation of investments. EB-SIM is taking the next step with the introduction of a self-developed, forward-looking evaluation system for the sustainability of companies, the EB ESG Score. The EB ESG Score will be used in particular to further develop the risk assessment of companies.

“Investing sustainably pays off,” emphasizes Chief Investment Officer Dr. Oliver Pfeil. “A comparison with the MSCI World Index shows that by applying our WIW concept, we can even increase our investors’ potential returns and reduce investment risks. Those who invest sustainably can therefore achieve a double return – an economic and an ethical-ecological one.”

^{1 The abbreviation WIW stands for values, integration, impact}