Entering a NEW ERA: today, change is a necessity
Extraordinary events like the pandemic have always had a major influence on our everyday lives, accelerating existing processes and rapidly leading to structural, long-term changes in our social, economic and financial systems.
In particular, the industrial shock we are currently witnessing is leading towards a global scenario defined by the relentless digitalisation of the economy and services, the deceleration of globalisation processes associated with components and end products, and an increased awareness of the fact that our actions have significant impacts on the environment, society and future generations, underlining the importance of respecting ESG (Environmental, Social and Governance) aspects.
The thinking behind New Era ESG, the equity fund of Kairos International Sicav, is linked to the potential of three key themes – connected by a common denominator identified through technological research – that will drive product investment decisions.
The rapid acceleration of the technological development and study of physics and the atom has had a major impact on sectors such as pharma, biotechnology, gene testing, gene editing, immuno-oncology and medical equipment, increasing the possibility of protecting human life.
Using nature as a source of inspiration, it is possible to accelerate the progress in fields such as biocompatible materials, antibodies, artificial tissues, genetic mutations and prevention, thus improving both the time frames and productivity of “Research and Development” activities.
The need to re-establish an equilibrium with the planet is becoming increasingly clear: the change in the intended use and exploitation of land, pollution, climate change and the introduction of invasive species into ecosystems are among the main causes of biodiversity loss, which in recent years has increased exponentially.
Sectors such as agriculture equipment, machinery and chemicals solutions and alternative energies offer important opportunities not only in terms of the control and certification of the supply chain, but also models of consumption and use of sustainable materials and fertilisers.
The increasing decentralisation of services to support a distributed and digital economy, the evolution of cloud technology and improvements in technological architecture are paving the way for major developments in the safety, type and robustness of the supported system, which in the long term could lead to a more agile and balanced digital society.
Rapid connectivity, cashless transactions, robotics, logistics 2.0 and thermo-scanning are just some of the developments that will impact our everyday lives and sectors such as payments, software, edge computing, security, 5G equipment and semiconductor technology.
Embracing change
Within the three main topics identified – Health and Wellness, Environment and Data Society – KIS New Era ESG aims to identify the best performing and most innovative societies able to set the benchmark for the next decade.
These companies share a common philosophy based on the focus on Intellectual Property, the observation of the infinitesimal at individual atom and bit level, and an innate approach inspired by nature. In fact, the Kairos Group sees the union of technology and biology as one of the most significant factors in resolving the economic, human and environmental challenges of this “New Era”.
With an active management style that combines bottom-up and top-down topic/sector analysis and a long-only strategy, KIS New Era ESG aims to achieve medium- to long-term capital appreciation while incorporating ESG criteria, in the face of a high level of risk. Rigorously analysed and implemented stock-picking activities and the meticulous qualitative analysis of each issuer are the key performance drivers of the management team which, boasting many years of experience on the stock market both in terms of management expertise and analysis techniques, is able to generate and intercept the best investment opportunities on the market.
The Fund will have an active management style with full discretion in allocating the portfolio. The benchmark is used for performance comparison purposes and for performance fees calculation.
It is addressed to investors with a high risk tolerance, who have experience or do understand the so-called risk capital products and are willing to bear even significant capital losses (in case they occur).
The investment implies a risk component, consequently, some or all of the originally invested capital may not be recovered. Past performance does not predict future returns. The KIS New Era ESG summary risk indicator is 6 out of 7.
Intrinsically ESG
Investors who choose this Fund don’t only wish to seize the structural transformation towards a New Era accelerated by the pandemic, but also to capitalise on their own resources in a responsible way.
When selecting securities, Kairos applies the three ESG filters of Sustainalytics, a research provider that, by identifying the most responsible businesses from those selected, enables value creation promoting sustainability criteria. This filters out businesses or entire sectors (such as the arms, tobacco and fossil fuel industries) that do not meet this criteria.
The Fund promotes, in addition to traditional financial considerations, Sustainable Investments as it takes ESG factors into account in the selection of its investments. Further information on sustainability aspects is available at the following link: https://www.kairospartners.com/esg/informativa-sfdr/. This product is categorised as SFDR Article 8.
Moreover, thanks to the very essence of the decisions behind its investment criteria, KIS New Era ESG is a naturally sustainable product, offering a concrete response for clients with a predilection for ESG topics whose investment requirements are centred on environmental sustainability, respect for society, and the responsible governance of the businesses in which they choose to invest.
Management Team
The Kairos Group is a signatory of the PRI, the United Nations initiative which contributes to developing a more sustainable global financial system.
‘ensign’ is the iconic emblem of the responsible commitment of Kairos towards a better world and its conviction that sustainable development is the business model of the future which must be implemented now.
