Product selection: a sensible balance of sustainability and diversification
We carry out an extensive economic and sustainability-related product analysis on the market on your behalf. Information is the key to being able to assess and continuously monitor a company's sustainability. In the past, fund managers made subjective decisions because of the poor data basis. This has now changed thanks to technological progress – and as a financial services provider we make use of these new possibilities.
We proceed in three steps when composing the portfolio:
Step 1
The first step in the product selection process is an analysis of the available product providers. In addition to general quality criteria with regard to index replication, we also pay attention to the sustainability of the fund providers.
Step 2
In the second step, we select funds that exclude companies according to the following criteria:
- norm-based: the 10 principles of the UN Global Compact
- values-based: nuclear weapons, cluster munitions, landmines and chemical weapons.
Step 3
In the third step, our asset management team analyses and combines the remaining products both from a sustainability perspective (ESG Quality Score and CO2 emissions) and with regard to a number of scientifically substantiated quality characteristics. These include, in particular, risk spreading and costs.
ESG quality assessment for sustainable portfolio stability
- AAA (ESG Quality Score 8.6–10) and AA (7.1–8.6) – Leaders: the companies the fund invests in manage financially relevant ESG issues through solid and/or improving management. These companies are likely to respond more resiliently to ESG events.
- A (5.7–7.1), BBB (4.3–5.7) and BB (2.9–4.3) – Average: the fund invests in companies with average ESG risk management, or with a mix of above- and below-average ESG risk management.
- B (1.4–2.9) and CCC (0.0–1.4) – Laggards: the fund invests in companies that show inadequate or deteriorating management of ESG issues. These companies could be more vulnerable to disruption from ESG events.
Source: MSCI ESG Research LLC**
Frequently asked questions
What are ETFs (index funds)?
In recent years, exchange traded funds (ETFs) have established themselves as an alternative to open-ended, actively managed investment funds. An ETF replicates a given index as precisely as possible and adjusts its composition to match its reference value.
For example, when you buy an MDAX ETF, you get all the stocks in the MDAX in exactly their current composition on the market. If the composition of the MDAX changes, the composition of your ETF changes too.
As a result, the management and administration fees for an ETF are significantly lower. On average they amount to 0.17 percent of the invested sum per year. If a fund manager actively looks after your investment funds, the costs rise to 1.5 to 2.5 percent per year.
What does Global Portfolio mean?
If you opt for our Global Portfolio, you invest across the entire market. From the risk you are willing to take, we derive the composition of your portfolio. More equities mean more risk – but also more return opportunities. More bonds reduce the risk – but also the return opportunities.
The Global Portfolio is generally suitable for building wealth. You can also take it out in a sustainable variant.
How does account opening work?
First, you register via “Open account” on our portal. To do so, you sign up with your email address and a password of your choice.
You then receive a PIN code by email to verify your email address. Once you have entered this PIN code, your personal details, contact details and ID details are recorded.
Finally, you have the choice between identity verification in the quirion app, on your computer, or at a Deutsche Post branch. Your quirion account is then opened for you without delay.
How does online video identity verification work?
quirion has to be certain that you really are the person for whom the account or the securities account is being opened.
For banks, the German Anti-Money Laundering Act requires an identity verification check.
With quirion, you have the choice:
You can verify your identity by VideoIdent, in the quirion app or on your computer.
You can also use the online ID function (eID) of your identity card, or verify your identity with PostIdent at a Deutsche Post branch.
For this you need a valid identity card or your passport plus proof of address (e.g. a phone bill).
The easiest way is to verify your identity with our app.
Once identity verification is complete, we receive your data and can then open your account.
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