Innovative, market-driven strategies
We believe that thorough research, investment discipline, and technology are key ingredients towards successful systematic climate investing. Our research and investment approaches are quantitative, data scientific and technology-enabled. Through them, we aim to build climate investment solutions which are transparent, forward looking, financially material, and robust across various market environments and risk scenarios.
Our proprietary research signals and investment models are built on the compound know-how of our research and portfolio management team with investment expertise in all relevant asset classes. Our focus on carbon markets, climate transition, and carbon mitigation delivers new insights and opportunities for investors.
Additionally, we enrich our investment solutions through regular exchange with climate, investment and risk experts from Munich Re Group as well as outside parties including industry associations and clients.
Client centricity is key to us. Where possible we customize our investment solutions in line with specific, bespoke client preferences. Product transparency, client focused sustainability and expert portfolio reporting are the basis for a smooth and continuous client dialogue.
Carbon Market Investments Strategies
Through our investment strategies we provide clients access to the opportunities of (regulated) carbon markets which trade carbon allowances.
With a low correlation to Fixed Income and Equities, Carbon Allowances play an important role in carbon emission mitigation1. Carbon markets, a rapidly growing global asset class, are receiving more and more attention from institutional investors. In 2022, the trade volume of globally regulated emission rights rose to a record of 865 billion EUR. Most of this volume (87%) comes from the European Emissions Trading System (EU ETS). Due to the success of the EU ETS, more and more economic areas around the world are adopting a market-based “Cap and Trade” system, with the result that almost 18% of annual emissions worldwide are now covered under an Emissions Trading Scheme.
Munich Re Investment Partners, recognises that carbon markets and corporate climate transition are heavily connected, with compliance carbon markets as an important policy tool to achieve decarbonisation in the real economy2.
Munich Re’s Group Climate Investment Conviction Statement: “We see a sufficiently high, sector-overarching carbon price (either by means of a tax or an emission trading system) as the preferred, technology-neutral policy instrument to reduce global greenhouse gas emissions to net zero as fast as possible.”