Interview with Reto Ringger
Mr Ringger: What is the rationale behind Globalance?
Together with our clients we want to invest in the future, in companies which promote progress in the world and which provide solutions to the big challenges that it faces. It’s not long before there will be between nine and ten billion people on the planet: that’s only possible if we radically alter the economy, and if we organise our methods of production, consumption or digitisation in an innovative, forward-looking way. Our investment clients achieve attractive returns thanks to companies which build smart megacities, or make the energy revolution possible, or develop digital mobility platforms. More and more investors expect a market rate performance combined with investments which achieve a positive impact. That’s also our philosophy: we generate attractive returns for our clients by investing in pioneering companies.
You evaluate the footprint of the invested capital. What does this mean?
The world is not just a marketplace, it’s also the place where we live. More and more investors, and especially women, would like to know what the impact of their investments is. What do the companies do with my money? How does its positive impact improve my returns? Are my investments part of the solution or part of the problem? Have I got hidden environmental risks in my portfolio? Our footprint approach is a key part of our investment strategy. It means that the investor sees the effects of his investments on economy, society, and the environment. A type of Google Earth for improving one’s understanding of one’s own investments.
What gave you this idea?
I’ve been interested in these future development topics ever since I was at university, and as a young financial analyst at Swiss Re I soon had the opportunity to deal with these exciting issues. If you want to invest successfully today, you’ve got to know how social or ecological developments influence the returns and risk profile of your financial investments. That’s our core belief. It’s now over twenty years since our team working in conjunction with Dow Jones developed an equity index which measures precisely these types of indicators. We then went on to set up the world’s first sustainable water fund. It’s always been about combining a market rate return with a positive effect.
How does the footprint boost the rate of return?
The stock market performance of companies which focus on these future development issues is demonstrably better than the benchmark. Pioneering companies cope with crises better, and they are more successful in the long-term. We invest in companies which proactively engage with global challenges and provide solutions for them. It’s especially in the emerging economies like China or India that these companies find particularly interesting markets. They are companies which develop digital high-school services, help to save energy, water and fertiliser in agriculture, or provide SMEs with access to the financial markets. We call companies like this futuremovers.
What are the advantages for investors of Globalance’s investment advice and its fund?
Our track record speaks for itself: over recent years our clients have achieved good returns thanks to investments which are “fit for the future” and which have a positive footprint. They benefit from a unique degree of transparency and security. Our clients also value the fact that in Globalance they have a really independent, owner-managed partner by their side which can answer their investment queries.
Paradigm change in banking
The tourist industry is familiar with tripadvisor. The aviation industry is familiar with ebookers.com. The traveller is familiar with google earth. But where can an investor find out more about his investments? Are they fit for the future, do they have a positive footprint?
Are they part of the solution? Globalance has developed the Globalance Footprint in order to provide the answers, and to show its clients where their investments are held. This innovation led to Globalance being recognised as a “Global Growth Company” by the World Economic Forum (WEF) in 2015.