Companies with high ESG scores will outperform, because they:
Are a good proxy for superior management
Will attract significant institutional flows
Contribute to Investment Risk Mitigation
What makes our Approach to ESG unique?
Investing with a sole focus on ESG can result in buying over-priced stocks. We create portfolios with superior fundamental characteristics and very high ESG Scores and very low Carbon Footprint at the same time.
What is the expected Performance impact of ESG?
We use MSCI ESG database and we developed our own ARTICO ESG factor, which is a good predictor of future outperformance
Artico Partners is a signatory of the UN PRI, follows the engagement work and the exclusion list of the SVVK (Swiss Association for Responsible Investments), fully supports the PARIS agreement on climate change and is also a supporter of the TCFD (Task Force on Climate-Related Financial Disclosures).
Published ARTICO Research:
Is sustainable investing a positive or negative contributor to outperformance? And how patient do investors need to be to capitalize on any positive effects? Our research results answer these questions and our conclusions on the required time horizon may come as a surprise for investors hesitating to introduce sustainable investing.
As Chairman of ARTICO Partners, Ulrich oversees the business strategy, the product development and the investment activities of the firm. Operationally, he is directly responsible for Risk Management and Compliance. Ulrich is a Founding Partner of ARTICO.
Ulrich has more than 30 years of investment experience and started his career as quantitative research analyst in 1986 at the then Swiss Bank Corporation. His various functions at SBC and later UBS Global Asset Management included: Chief Investment Officer, Co-CEO Switzerland, Chairman of the Swiss Business and Head of the Alternative Investment Management Business (Private Equity, Hedge Funds, Infrastructure). Ulrich holds a PhD in Nuclear Physics from University of Basle.
Dr. Gabriel Herrera
CEO and Senior Partner
As CEO of ARTICO Partners, Gabriel is responsible for all aspects of the business including the product development, client relationships and the investment activities of the firm. Gabriel is a Founding Partner of ARTICO.
Gabriel has more than 30 years of investment experience and started his career as equity research analyst in 1987 at the then Swiss Bank Corporation. His various functions at SBC and later UBS Global Asset Management included: Head of Equity Research, Co-CEO Switzerland and then CEO Europe Middle East & Africa. Gabriel holds a PhD in Economics from University of Basle.
CIO and Partner
As Chief Investment Officer Tero is responsible for the research and development of investment strategies and portfolios. His responsibilities include the continued development of the investment platform and the portfolio management of ARTICO funds.
Tero’s background contains several years of experience in global equity portfolio management and prior experience in the areas of software development, quality management and team leadership. Tero holds MsC in computer science from the Helsinki University of Technology and MBA from the Purdue University. Tero is also a CFA Charterholder.
Head PM and Partner
Michael’s main responsibility is the portfolio management of ARTICO funds. His further responsibilities include the development of the investment platform, and research and development of investment products and strategies.
Michael holds diploma certificate in electrical engineering and MBA from the university of South Australia. He has several years of experience in global equity portfolio management and prior experience in software development in the areas of telecommunications, medical engineering and finance.
COO and Partner
As Chief Operating Officer of ARTICO, Andreas is responsible for the operational part of the investment management, including the fund operations and trading activities.
Andreas‘ background involves several years of work experience in the finance industry, mainly in global equity trading and operations functions. He is holder of Swiss federal diploma in business organization and a diploma in applied psychology.
New Strategic Partnership for ARTICO with SERAFIN Asset Management
Today we can announce the formation of a strategic partnership with SERAFIN Asset Management, ensuring the continuation and further development of our ARTICO Sustainable Equity Funds. It will also provide our entire ARTICO team a broader base to operate in terms of research as well as marketing resources. The leadership, the ARTICO team and the investment process of our ARTICO Sustainable Equity Funds will remain unchanged.
Background and Rationale: We have built a good track record with the ARTICO team over the past 12 years by systematically investing in fundamentally good companies. Since 2019, we have expanded our investment criteria to include a high ESG rating and a low carbon footprint. The result is remarkable, as we not only retained the above-average fundamental properties, but were also able to achieve top ratings for both ESG and carbon footprint at the same time. With ARTICO Sustainable Equity Funds, the investor does not have to make any compromises in terms of performance or diversification and can pursue all three goals of “good performance“, “high sustainability“ and “low CO2 footprint“ at the same time.
Our unique positioning potentially appeals to many investors. However, Artico Partners is often regarded as too small by institutional investors to be able to win larger mandates. Our funds have also not yet had wider public distribution. For some time now, we have therefore come to the conclusion that ARTICO Partners cannot exploit its full potential stand-alone, but must look for a strategic partner with whom the next step will be possible. We have now found the right partner.
Last Friday we agreed on a strategic partnership with SERAFIN Asset Management, which not only brings us synergies in the areas of databases and quantitative research, but also gives us a decisive boost in sales and marketing. SERAFIN Asset Management is a young and entrepreneurial German asset management group with 1 billion AuM, which is already on the map with two asset management teams in Frankfurt and Zug. Besides its quantitative focus, it has one particular investment focus on „innovation“ as a key specialty. Subject to FINMA approval, SERAFIN will initially acquire 51% of ARTICO Partners. The entire ARTICO Partners team will remain together and will become the sustainability specialist within the SERAFIN Group.
Stay anchored on fundamentals (interest rates, valuations and profits)
• The exuberant investor optimism at the end of January went through some reality check in February
• In the month of February global developed markets lost 2.4%, global small caps declined 2.2% and Emerging Markets were down 6.5%
• Predicting future market sentiment is a lottery
• It is therefore better to stay anchored on fundamentals, mainly on interest rates, valuations and corporate profits
• Uncertainties persist around future interest rates decisions by the FED
• Inflation proves to be stickier than expected by markets
• Tight labor markets will further put upwards pressure on wages
• The FED will therefore have to raise rates further and for longer
• Rising rates meet still high historic valuations, not a good ground for sustained market rally in global equities, unless corporate earnings grow faster, which looks less likely to happen
• For emerging markets, valuations are much more attractive
• This together with the re-opening effects of the Chinese economy provides for a better relative outlook for emerging markets
• Swings in US-Chinese tensions will of course affect this path
• ARTICO Sustainable Equity Funds are now Article 9 SFDR and offer a unique combination of
• a) superior fundamental characteristics,
• b) very high ESG/Sustainability Scores („AA/AAA“ ESG Rating by MSCI) and
• c) very low carbon footprint aligned with Paris-climate objectives