Investment Selection Process

The assets of our clients are invested in companies that make a positive contribution to a sustainable quality of life while achieving a fair market rate of return. A multistage selection process is followed that leads to Forma Futura's investment universe. Of a global pool of around 12,000 companies, around 250 meet our rigorous sustainability criteria.

Forma Futura Anlageprozess Filter en

Forma Futura Investment Selection Process

1. External Basic Review

Our research partner ISS ESG (Link auf deren Website) analyses and evaluates around 12,000 companies worldwide based on 100 industry-specific sustainability criteria. Only companies with prime status (better than the absolute sustainability threshold for their sector) are admitted to our base universe. Unique about this approach is our focus on absolute sustainability. Being "best in class" relative to their peers is not sufficient - all companies must meet our comprehensive requirements.

2. In-house Financial Analysis

Our team of financial specialists, which is independent of the sustainability research team, performs an independent financial analysis. Only companies that appear to be financially attractive investments enter into the next stage of the selection process.

3. In-house Proprietary Sustainability Analysis

In the next step, Forma Futura’s proprietary approach to sustainability is applied. Our sustainability research team analyzes the candidate companies and selects those companies that make the greatest possible contribution to improving the sustainable quality of life. The approach consists of:

  • detailed, qualitative company analysis
  • the application of the exclusion criteria (e.g. conventional and controversial weapons, nuclear energy and genetic engineering in agriculture)
  • active and specific contact with the company
  • discussion and evaluation of companies in the investment selection panel (sustainability team and top management)
  • continuous monitoring and evaluation of any controversial business activities

The entire Forma Futura methodology for analyzing a sustainable quality of life is based not only on numerous sustainability criteria, but also on the extensive, deep and interdisciplinary experience of our team.

Climate


Since its foundation in 2006, Forma Futura has applied the "fossil energy" exclusion criterion to all assets under management. Companies involved in exploration, production, refining and/or energy generation are excluded.

The shares of investments in total assets under management in sectors with high climate relevance as of December 31, 2023 are:

Fossil Energy (oil, gas, coal): 0%, Aviation: 0%, Automotive: 1.1%.

Forma Futura Investment Universe

As a result of these rigorous analyses, an investment universe of about 250 companies is created in whom Forma Futura can invest in stocks and bonds. This allows clients to broadly diversify across sectors and regions of the world. For the sake of further diversification, we can also invest in funds qualified by our sustainability analyses.

Individual Client Portfolio

After determining the client's risk capacity and risk tolerance through discussions with our client, the appropriate investment profile and reference currency is defined. Based on this information, an individual portfolio is prepared and managed for each client.


Would you like to find out more?

We are happy to hear from you!

Alice Balmer

Alice Balmer

Co-Head Sustainability Research

«For me, dealing respectfully with resources and fellow human beings are values that matter in the financial industry too. We are all responsible for global inter-generational justice.»