Generali Investments CEE: Leading by Example, with Proximity to Clients and a Firm Sustainability Focus

Generali Investments CEE, the leading investment company in Central and Eastern Europe, draws on its experience to provide funds which are a perfect fit the region.

The company stays on top of latest trends but keeps its focus and emphasis on sustainability and the ability to respond to any situation.

With its expert team and proximity to customers and clients, Generali has maintained its status as the biggest CEE investments company despite the challenges of the pandemic and Russia’s invasion of Ukraine.

Since 1991, Generali Investments has been shaping the culture of the European investments as one of the founders of the Czech capital market association. With headquarters in Prague, the company is as close as possible to the financial markets of Central and Eastern Europe.
“We understand their local diversity and preferences,” says chief portfolio manager Michal Toufar, “but also their complexities and shortcomings. We believe that this knowledge is key to successful asset management.”

The growth of Generali Investments’ AUM has also been aided by the company’s partnership with Moneta Money Bank. The co-operation began in 2016 and rapidly grew with AUM currently amounting to almost €404 million; Generali Investments’s total AUM is impressive €16bn. The company also benefits from the support of the internal distribution network of Generali Česká pojišťovna, which regularly registers a particular interest in tranche products.

Generali Investments CEE: Fund AUM (mil. EUR). Source: Generali Investments CEE

Stability and Innovation

While the investments sector has been shaken by the pandemic and Russia’s invasion of Ukraine, Generali has continued to grow. It has always reacted promptly and aptly to the state of financial markets, broadening its portfolio with new tailor-made funds.

“This year, we have established a new secured fund in response to current conditions,” says Toufar. “The Generali Hedged Equity Income Fund offers the opportunity to invest in stable European companies with high dividend yields — while simultaneously providing a 100 percent hedge of the invested amount, as well as currency hedging.

“The fund met with enormous interest from our clients — during the two-month accumulation period, they invested more than €44.5m, making it one of the most successful tranches ever.”

Emphasis on Sustainability

Generali Investments CEE promotes climate action and sustainable investing. All the company’s flagship funds squarely support ESG principles. They comply with Article 8 of regulation on the sustainability-related disclosure for the financial services sector (SFDR) of the European Parliament and the European Council.

Generali Investments also offer specialised ESG-orientated funds, the Generali Sustainable Growth Fund and Generali Fund of the Living Planet. They focus on companies combining financial growth with social and environmental responsibility and good governance.

The Living Planet fund invests in companies in the fields of alternative energy sources, waste recycling, organic farming and water treatment. These sectors are all necessary to mitigate the climate change, and present exciting investment opportunities.

The basis for the successes Generali Investments lies in its analytics team: seven financial experts with more than a century of collective expertise. Their areas of specialisation include macro-economics, credit assessment, and stocks. The team covers all financial events of the CEE region. And as a part of the Generali Group, it can befit from the analytical findings of other members of the Generali analytical network — the work of 40 experts.

The Prague analytical team has been recognised for its prowess in predicting inflation and the GDP of the Czech Republic, and for the most precise prediction of exchange rates of central European currencies (Consensus Economics Forecast Accuracy Award, Thomson Reuters Analyst Awards).

Social Responsibility

Generali Investments CEE is active in charity and CSR. It has provided financial assistance to elderly citizens during the Covid-19 pandemic. “In addition to supporting organisations helping disadvantaged groups of fellow citizens, we are also involved in the global activities of the Generali Group, which connect non-profit organisations with the private sector through the Human Safety Net movement,” says Generali Investments chief executive Josef Beneš.

In harmony with this focus on sustainability, Generali Investments gives priority to projects focused on the environment. For several years, it has been a partner to the series of amateur Run Forests race events, at which the company promotes the benefits of recycling.

“Both social and environmental sustainability are of the utmost importance in all our activities,” concludes Beneš. “That’s why we offer not only the possibility of sustainable investments, but contribute in this way ourselves.

“As the region’s leader in investments, we hope that others will follow our example.”