{"date":"2023-04-06T00:00","headerImageUrl":"https://structuredproducts-ch-pub-uat.leonteq.com/product-news/product-homepage-banner/impact_investing_leonteq-structured-products_product+homepage+banner.jpg","subTitle":"Tracker Certificate on the Swissquote Impact Index","windowTitle":"Impact investing: A simple way of improving the world","category":"investment-themes","title":"Symbiosis of financial and social return","body":"

A roof in Kenya<\/h3>\n

Some young people from Kenya delivered a real coup in 2009 when, ahead of a global climate conference, they installed a solar system on the roof of the home of Sarah Obama, the since deceased grandmother of the then US president Barack Obama. By this action, which was accompanied by a letter from the houseowner to her famous grandson, Greenpeace sought to direct attention towards the issue of renewable energy. Looking back, it is difficult to say whether and to what extent US climate policy was influenced. What is certain is that Solafrica had its beginnings on the roof of that house in Kenya. Spurred on by the events of that time, this independent Swiss non-profit organisation is still dedicated to promoting solar energy today. Solafrica seeks to enable access to clean energy and promote climate protection in economically disadvantaged regions. Among the current projects run by the organisation is Santé Solaire, the aim of which is to install solar systems in several villages of Burkina Faso.<\/p>\n

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Principle of dividend-sharing<\/h3>\n

Solafrica has just received support for the project to the tune of CHF 30,000. The money comes from funds of the new tracker certificate on the Swissquote Impact Index. With this underlying the direct broker has added a global investment trend to its “Themes Trading” series. Impact investing stands for a symbiosis of financial and social return. “With the impact certificate from Swissquote, investors are donating to projects that help individuals and local communities directly,” say the initiators. To generate as much money as possible, the new index follows a dividend strategy. The focus is therefore placed on companies that offer consistently above-average dividend yields. The distributions received are then split, with half flowing back to investors through reinvestment and the other 50% of dividends going directly into the financing of sustainable development projects.<\/p>\n

Diversified and high-yielding<\/h3>\n

Alongside the dividend approach, shares are also selected according to strict ESG criteria. This means that only companies which lead by example in terms of environmental protection, social matters and governance are considered. If a company realises income directly from coal or oil, is involved in controversial environmental activities, is associated with weapons and tobacco or does not follow the principles of the United Nations Global Compact, it is excluded from consideration. Twenty shares from Europe, North America and Asia have made it through the stringent selection process, which also includes quantitative criteria. These are all classic dividend-bearing stocks. Take Deutsche Post as an example: since 2008 the letter and logistics group has paid out a total of EURbn 23.6 to its shareholders in the form of dividends and share buybacks. The next dividend payment is scheduled for May. Based on the proposed distribution of EUR 1.85 per share, Deutsche Post is currently offering a high dividend yield of 4.3%.<\/p>\n

Swissquote Impact Index – the principles<\/h3>\n
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Transparency at all levels<\/h3>\n

As has already been mentioned, half of this and other distributions in the Swissquote Impact Index go into social projects. The focus at present is on Santé Solaire in Burkina Faso. Swissquote works with certain investors to select this and other funding projects. As soon as the financial goal of a project is achieved, a new one is launched, ensuring a continuous positive cycle. Transparency plays a key role here, with constant updates to the information provided on the Swissquote website. The initiators are aware of the hot-button issue of greenwashing, which can dilute the good intentions of an investor. “We are realistic about our ability to change the world, but we know that we can have a real impact on local communities in need,” the Swissquote team emphasises. The tracker on the Impact Index is fully transparent also. While Swissquote acts as the issuer, Leonteq is responsible for both calculating the index for this actively managed certificate and its smooth trade on the SIX Swiss Exchange.<\/p>\n

Tracker Certificate on the Swissquote Impact Index<\/h3>\n
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