In order to single out first-rate companies that qualify for the portfolio, our managers seek out fundamental and sustainable value drivers such as steady business sector growth, changing trends in business models, mispricing, or restructuring efforts. The next step is to analyse and filter these ideas more closely with the help of valuation techniques that use an income-based approach (DCF models, multiple valuation, peer group analyses) or intrinsic value methods (analysis of balance sheet quality). An analysis of how well companies have integrated the individual ESG criteria into their business models is also a decisive factor for the fund’s investment strategy.

Through our regular management talks, we can give valuable impulses especially to small and mid-cap companies that are often still in the process of implementing their ESG capabilities. Over time, this can help the company build up a more sustainable position and generate added value.

After an in-depth evaluation of the business model and further talks with senior executives, a limited number of top-quality equities are singled out for the PURE portfolio. Each asset selected is given an appropriate weighting to ensure that it has a significant impact on portfolio performance.