klimaVest: Eine
  Straße, die durch den Wald verläuft, aus der Luft fotografiert.

Commerz Real launches first impact fund with a tangible assets focus on retail investors

28.10.2020 4 Reading Time

  • Linking a measurable contribution to climate change mitigation with a return of 3 to 4 percent (using the BVI method)
  • Regular reporting on avoided carbon emissions
  • A national representative survey confirmed that 66 percent would like to see impact products, but only 22 percent can find such offers on the market

With klimaVest, Commerz Real has launched the first impact fund for private investors, which invests in tangible assets in a focused manner. During its term of at least 50 years, it is expected to build a portfolio consisting of investments in renewable energy generation, sustainable infrastructure, mobility and forestry assets totalling at least 25 billion euros, of which approximately 10 billion euros will be equity. 

Unlike conventional sustainability funds, klimaVest invests in assets that make a measurable and thus demonstrable contribution to reducing carbon dioxide (CO₂) emissions. In addition, other strict sustainability parameters apply in accordance with the applicable EU Taxonomy Regulation. The fund management aims to achieve an annual return (using the BVI method) of between 3.0 and 4.0 percent. Investors can participate from 10,000 euros and receive regular reports on the fund assets’ climate impact achieved in addition to its performance. 

They can also use a digital CO₂ calculator to calculate the impact of the investments on their personal CO₂ footprint depending on the amount they have subscribed. An investment horizon of at least five years is recommended. However, units in the open-end fund may be redeemed on any trading day at the net asset value. The Luxembourg-based klimaVest is structured as an ELTIF (European Long Term Investment Fund).

“Achieving the climate goals of the European Green Deal requires significantly more investment than before,” explains Johannes Anschott, Chairman of the Commerz Real Management Board. “With klimaVest, we want to make a substantial contribution to the energy transition and show that this is possible with an attractive return at an appropriate risk for retail investors.” 

According to calculations by Commerz Real, for example, a capital investment of one billion euros could reduce carbon dioxide emissions by 300,000 to 400,000 tonnes per year. Even with a minimum investment of 10,000 euros in klimaVest, it would be three to four tonnes per year. “That is impact,” emphasises Anschott. Commerz Real has already acquired nine wind farms in Germany, Spain and Sweden, as well as a solar park with a total rated output of over 150 megawatts.

For Commerzbank, which is initially selling the product exclusively, klimaVest is an important addition to its product range. “Our customers’ interest in sustainable and responsible investing is increasing significantly,” says Sabine Schmittroth, Member of the Commerzbank Management Board. "Investments in our sustainable wealth management have risen by 50 percent this year to around 350 million euros. This trend will continue to intensify. klimaVest is therefore the right product at the right time. Another sustainable investment offer is now available to our customers".

This assessment is confirmed by a survey commissioned by Commerz Real through the opinion research institute, YouGov, among 2,018 German citizens in August of this year. According to this survey, 66 percent of respondents would either invest in such a product in general or if the returns were similar to that of conventional products.

Question: Suppose you want to invest money, and there is an investment product that combines an attractive return and an active, measurable contribution to promoting climate change mitigation. Would you invest in this product?

In the same survey, only 22 percent answered yes to the question of whether they believe there are such investments on the market at the moment. On the other hand, 34 percent of those surveyed believe that there is no such offer.

 “We are closing a significant supply gap with klimaVest,” comments Tobias Huzarski, Head of Impact Investment at Commerz Real since the beginning of 2020. “We network the core areas of sustainability, tangible assets and digitalisation and thus provide a solution that offers investors access to safety-oriented and sustainable investments and achieves a positive environmental impact.” 

While ESG (Environmental, Social and Governance) funds are generally defined by exclusion criteria, for example not investing in lignite, impact funds aim to achieve a measurable positive environmental or social contribution. klimaVest, for example, aims to limit global warming by reducing carbon dioxide emissions and also achieve an appropriate return.