Generali Investments takes steps towards promoting sustainability


As of 1 February 2023, Generali Investments – the oldest asset management company in Slovenia and a member of the Generali Group – amended the investment process of 11 of its 15 Generali Umbrella Fund subfunds by integrating sustainability risk in their investment decision-making. These funds qualify as the financial products referred to in Article 8 of the SFDR Regulation*, i.e. funds promoting environmental and social characteristics.

Investors keen to contribute to sustainable development

Generali Investments believes it can play its part at a time marked by growing threats to the environment, negative climate change, and demands to meet higher social and corporate standards by promoting sustainability performance of the issuers of the financial instruments invested in by its subfunds. This certainly goes hand in hand with the general trend towards more sustainable development, and the increasing desire of most investors to themselves contribute to a sustainable future.

Key changes lead the investment process towards more sustainable development

From now on, the investment process will employ the ESG integration approach. The attainment of the new investment objective of the aforementioned 11 subfunds, which is defined as capital growth pursued by promoting environmental and social characteristics, will be measured by means of a joint indicator, i.e. the share of the assets of each of the subfunds covered by the ESG integration strategy. Investments considered to be aligned with environmental and social characteristics promoted by each of the subfunds will represent between 75% and 100% of their assets.

The Generali Group, one of the largest global financial and insurance groups (of which Generali Investments is a member), integrated sustainability principles into its business processes some time ago. Care for a more sustainable future is reflected in its investment decisions, employee engagement and customer relations. The objective is to create competitive returns in the long-term while at the same time generating positive impacts for society (S), the environment (E) and corporate governance (G) – the ESG factors. The integration of the ESG principles requires engagement and action on the part of all stakeholders: firstly, the state, whose task is to regulate this area in a systemic way, with appropriate incentives and laws. Secondly, companies, who will have to implement the laws and other rules in their business, amending their business processes accordingly. Just as important stakeholders are financial institutions catering for appropriate capital allocation and individuals displaying responsible conduct.

SFDR means Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector, which lays down rules for financial market participants and financial advisers on transparency with regard to the integration of sustainability risks and the consideration of adverse impacts in their processes and the provision of sustainability‐related information with respect to financial products.

 

**ESG is an abbreviation denoting Environmental (E), Social (S) and Governance (G) factors.

 

Generali First Selection and Generali Vitality receive the highest Morningstar overall rating of 5 stars for asset management

“Uncertain” is the word that best describes 2022. War on the doorstep of the European Union, inflation at rates reminiscent of the 1980s, the rise of dictatorships and the fastest rate hike in US history are the topics that have shaped capital markets over the past year. Economic recovery expected to occur after the end of the pandemic was weaker than foreseen due to the decline in consumer and investor confidence. The global capital markets in 2022 saw central banks reversing their policies after almost a decade, sharply raising the price of money. This brought high volatility to equity and bond markets, with the latter seeing the biggest slump in the last 50 years.

Despite the great uncertainty, Generali Investments ended the year with results testifying to its consistent professionalism and excellence in the active management of investors’ assets: 12 out of the 15 subfunds of the Generali Umbrella Fund outperformed their benchmarks in the period from 31 December 2021 to 31 December.

The above is also confirmed by the international Morningstar rating.

Five of our funds earned a Morningstar rating of a maximum of 5 or 4 stars, ranking among the top 10% of the funds rated in each category (5 stars) or among the next 22.5% of the funds (4 stars). On 31 December 2022, Morningstar assigned the overall rating of 5 or 4 stars to the following Generali Umbrella Fund subfunds:

 

 

*Morningstar, an independent and highly acclaimed rating agency based in the US, has been rating funds across the world since 1985. Funds are rated according to their risk-adjusted returns, also taking account of their investment policies and expenses. Funds are ranked within their respective categories, with ratings recalculated each month. The highest rating is 5 stars. The best 10% of funds in each category receive 5 stars, the next 22.5% four stars, the middle 35% three stars, the next 22.5% two stars, and the bottom 10% receive one star. Funds are rated for ten-, five-, and three-year periods, and these ratings are combined to produce an overall rating. How the overall rating is formed: for funds with at least 3 years and less than 5 years performance history, their 3-year star ratings will be the same as their overall star ratings. For funds with at least 5-year and less than 10-year records, their 5-year histories will count for 60% of their overall rating and their 3-year rating will count for 40% of the overall rating. For funds with at least 10 years of performance, the overall rating will be weighted as 20% for the 3-year rating, 30% for the 5-year rating, and 50% for the 10-year rating.

 

 

Copyright © 2020 Morningstar Deutschland GmbH. All rights reserved. Information in this publication: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

 

 

 

Generali Investments Slovenia signed an agreement to transferring the management of Generali Growth Equity Fund to ALFI PE

 

The transaction will not change the Fund’s policy neither will have any impact on the Fund’s investors. The Generali Group remains the Fund’s second largest investor, after the European Investment Fund (EIF). To close the transaction, approvals of the relevant bodies of the Fund and regulatory authorisations must be obtained.

Generali Growth Equity Fund, a private equity fund, invests in small and medium-sized companies with strong growth potential, offering them support for growth financing, capacity expansion, sales network building and new product development as well as the acquisition of competitors and management of succession matters. Its investment portfolio consists of investee companies demonstrating a sustainability focus, a high level of development, keeping up with the latest trends and an extraordinary growth potential.

ALFI PE d.o.o. is a member of ALFI SKLADI, the largest group for alternative investment fund management in Slovenia, incorporating five different alternative funds with more than EUR 400 million of assets under management. ALFI PE d.o.o. also manages the largest private equity fund established in Slovenia, ALFI PE SIS k.d.

 

 

 

Generali Growth Equity Fund was founded in 2019 as part of the Slovene Equity Growth Investment Programme (SEGIP), which was launched upon the initiative of the SID Bank in cooperation with the EIF. It offers equity and quasi-equity financing to Slovenian SMEs and mid-cap companies. The SID Bank committed to contributing EUR 50 million of its own funds to this programme (without state guarantee), and the EIF has provided an additional EUR 50 million under the European Fund for Strategic Investments (with EFSI guarantee). By mobilising additional funding from other private investors through the SEGIP programme, overall investments for Slovenian companies exceeds EUR 150 million, which is 3-times the contribution of the SID Bank.

 

Generali Growth Equity Fund completes the acquisition of a share in Zobozdravstvo Diamant d.o.o.

 

Zobozdravstvo Diamant d.o.o. is the largest private dental centre in Slovenia headquartered in Celje, currently operating with ten dental chairs. Its core activities include prosthetics, orthodontics, implantology, dental conservation and endodontics. The company pursues a clear business strategy, focusing on customers – patients. Thanks to using sophisticated high-tech instruments and materials, the company provides its patients with high-quality services according to the one-stop-shop principle, satisfying medical, functional and aesthetic needs.

Through the Fund’s entry in the ownership structure, Zobozdravstvo Diamant will gain more financial strength and at the same time benefit from additional professional support and expertise in business expansion, thereby further consolidating its leading role in providing high-quality dental services.

Together with the founder, who is keeping a share in the company, the Fund plans expansion throughout Slovenia. This will help Zobozdravstvo Diamant bring its high-quality services closer to people in the entire country.

Generali Growth Equity Fund is a special investment fund managed by Generali Investments, Slovenia’s oldest management company with subsidiaries in Croatia and North Macedonia. Generali Growth Equity Fund invests in ambitious small and medium-sized companies, offering support for growth financing, capacity expansion, sales network building and new product development as well as the acquisition of competitors and management of succession matters.

 

 

 

The Generali Growth Equity Fund investment in Zobozdravstvo Diamant, d.o.o., is co-financed by the European Investment Fund and the SID Bank. Generali Growth Equity Fund was founded in 2019 as part of the Slovene Equity Growth Investment Programme (SEGIP), which was launched upon the initiative of the SID Bank in cooperation with the European Investment Fund (EIF). It offers equity and quasi-equity financing to Slovenian SMEs and mid-cap companies. The SID Bank committed to contributing EUR 50 million of its own funds to this programme (without state guarantee), and the EIF has provided an additional EUR 50 million under the European Fund for Strategic Investments (with EFSI guarantee). By mobilising additional funding from other private investors through the SEGIP programme, overall investments for Slovenian companies could exceed EUR 150 million, which is 3-times the contribution of the SID Bank.

 

 

Generali Growth Equity Fund in the process of acquiring a share in the company Zobozdravstvo Diamant, Celje

 

Zobozdravstvo Diamant d.o.o. is the largest private dental centre in Slovenia headquartered in Celje, currently operating with ten dental chairs. Its core activities include prosthetics, orthodontics, implantology, dental conservation and endodontics. The company pursues a clear business strategy, focusing on customers – patients. Thanks to using sophisticated high-tech instruments and materials, the company provides its patients with high-quality services according to the one-stop-shop principle, satisfying medical, functional and aesthetic needs.

Through the Fund’s entry in the ownership structure, Zobozdravstvo Diamant will gain more financial strength and at the same time benefit from additional professional support and expertise in business expansion, thereby further consolidating its leading role in providing high-quality dental services.

Together with the founder, who is keeping a share in the company, the Fund plans expansion throughout Slovenia. This will help Zobozdravstvo Diamant bring its high-quality services closer to people in the entire country.

Generali Growth Equity Fund is a special investment fund managed by Generali Investments, Slovenia’s oldest management company with subsidiaries in Croatia and North Macedonia. Generali Growth Equity Fund invests in ambitious small and medium-sized companies, offering support for growth financing, capacity expansion, sales network building and new product development as well as the acquisition of competitors and management of succession matters.

 

The Generali Growth Equity Fund investment in Zobozdravstvo Diamant, d.o.o., is co-financed by the European Investment Fund and the SID Bank. Generali Growth Equity Fund was founded in 2019 as part of the Slovene Equity Growth Investment Programme (SEGIP), which was launched upon the initiative of the SID Bank in cooperation with the European Investment Fund (EIF). It offers equity and quasi-equity financing to Slovenian SMEs and mid-cap companies. The SID Bank committed to contributing EUR 50 million of its own funds to this programme (without state guarantee), and the EIF has provided an additional EUR 50 million under the European Fund for Strategic Investments (with EFSI guarantee). By mobilising additional funding from other private investors through the SEGIP programme, overall investments for Slovenian companies could exceed EUR 150 million, which is 3-times the contribution of the SID Bank.

 

Generali Growth Equity Fund completes the acquisition of a share in Rolnet d.o.o.

 

 

Established in 2004, Rolnet d.o.o operates in the markets of Slovenia, Croatia, Serbia, Bosnia and Herzegovina, Montenegro and Austria. Today, the company is a reliable partner in the sports nutrition industry and one of the leading specialised sellers of sports nutrition, health and wellness products in the region of South-East Europe. It develops and markets sports nutrition products and food supplements, focusing on sales in franchise stores, shopping centres, gyms, via online shops and through other distributors (retailers). The company owns the Proteini.si and Battery Nutrition brands, and has over the years gradually secured distribution and agency for the most established European brands of sports nutrition.

Through the equity investment of Generali Growth Equity Fund, Rolnet will be able to strengthen the further development of its services and their provision in the markets of the region.

Generali Growth Equity Fund is a special investment fund managed by Generali Investments, Slovenia’s oldest management company with subsidiaries in Croatia and North Macedonia. Generali Growth Equity Fund invests in ambitious small and medium-sized companies, offering support for growth financing, capacity expansion, sales network building and new product development as well as the acquisition of competitors and management of succession matters.

 

 

The Generali Growth Equity Fund investment in Rolnet d.o.o. is co-financed by the European Investment Fund and the SID Bank. Generali Growth Equity Fund was founded in 2019 as part of the Slovene Equity Growth Investment Programme (SEGIP), which was launched upon the initiative of the SID Bank in cooperation with the European Investment Fund (EIF). It offers equity and quasi-equity financing to Slovenian SMEs and mid-cap companies. The SID Bank committed to contributing EUR 50 million of its own funds to this programme (without state guarantee), and the EIF has provided an additional EUR 50 million under the European Fund for Strategic Investments (with EFSI guarantee). By mobilising additional funding from other private investors through the SEGIP programme, overall investments for Slovenian companies could exceed EUR 150 million, which is 3-times the contribution of the SID Bank.

 

 

Delo’s entrepreneurial stars on a transition that will lead us to climate neutrality

 

 

Before the evening announcement, a seminar hub was held, and Luka Flere, a member of the Management Board of Generali Investments, addressed the audience about the important role that the financial sector plays in sustainability.

 

 

He called on all individuals, consumers, investors, entrepreneurs, managers, as well as decision-makers, “to start cooperating, to act together, to move from words about sustainable growth to action”. In his address, he emphasized that we must integrate sustainable principles into the investment process and that the goal of sustainable investment (the so-called ESG) is to create a competitive company while influencing society (S), the environment (E), and corporate criteria through management (G). Companies will have to integrate ESG standards into their operations and also disclose indicators. Companies have still a room for improvement in this area—in the calculation of indicators and transparent publication. However, all parts of the state, companies, financial institutions, and individuals must be involved—because the intersection of all interest groups means the quality of life on this planet. He added that the state must regulate this area systemically with appropriate incentives and laws, and the company will then have to implement the rules and change business processes.

In the future, investors can expect to see labels on financial products, as well as on in-store products, from which it will be possible to deduce whether and which sustainability aspect a financial company pursues with them.

He concluded that the asset management company has tasks to integrate into the investment process a criterion by which the company that would bear the greatest risks associated with sustainability can be excluded from the portfolio. Such examples could be, for example, an oil company that has an oil spill, corruption in a pharmaceutical company, money laundering.

 

 

Generali Growth Equity Fund closes the acquisition of a stake in Diverto d.o.o., Zagreb

 

 

Headquartered in Zagreb, Diverto was established in 2007 as a Comprehensive Information Security Provider. Since starting out as a pioneer in this field, it has grown to become one of the leaders within the region.

The company protects clients against security threats that can cause data breaches, financial loss and damaged credibility and is solely focused on information security. It offers a range of information security services, from consultancy to managed services. Its service portfolio consists of governance, risk & compliance, assessments and tests, education and training, incident response, defence services and Security Operations Centre (SOC). The company is the holder of one of the widest range of industry relevant certificates in the region.

The Generali Growth Equity Fund’s equity investment in Diverto will help the company continue its development activities in Cyber Security Solutions and expansion into the wider region.

Generali Growth Equity Fund is a special investment fund managed by Generali Investments, Slovenia’s oldest management company with subsidiaries in Croatia and North Macedonia. Generali Growth Equity Fund invests in ambitious small and medium-sized companies, offering support for growth financing, capacity expansion, sales network building and new product development as well as the acquisition of competitors and management of succession matters.

 

The Generali Growth Equity Fund investment in Diverto d.o.o., is co-financed by the European Investment Fund and the SID Bank. Generali Growth Equity Fund was founded in 2019 as part of the Slovene Equity Growth Investment Programme (SEGIP), which was launched upon the initiative of the SID Bank in cooperation with the European Investment Fund (EIF). It offers equity and quasi-equity financing to Slovenian SMEs and mid-cap companies. The SID Bank committed to contributing EUR 50 million of its own funds to this programme (without state guarantee), and the EIF has provided an additional EUR 50 million under the European Fund for Strategic Investments (with EFSI guarantee). By mobilising additional funding from other private investors through the SEGIP programme, overall investments for Slovenian companies could exceed EUR 150 million, which is 3-times the contribution of the SID Bank.

 

Generali First Selection and Generali Bond receive the highest Morningstar overall rating of 5 stars

 

Generali Investments has consistently been known for its professionalism and excellence in managing investor assets. Three of our funds received a maximum of 5 or 4 stars, ranking among the top 10% of funds in each category (in the case of 5 Morningstar stars) or the next 22.5% of funds (in the case of 4 Morningstar stars). On 31 December 2020, Morningstar assigned 5 and/or 4 stars to the following funds:

Generali First Selection, 5 stars in the Flexible Allocation – Global category
Generali Bond, 5 stars in the EUR Diversified Bond category
Generali Vitality, 4 stars in the Global Large-Cap Blend Equity category

 

 

Morningstar, an independent and highly acclaimed rating agency based in the US, has been rating funds across the world since 1985. Funds are rated according to their risk-adjusted returns, also taking account of their investment policies and expenses. Funds are ranked within their respective categories, with ratings recalculated each month. The highest rating is 5 stars. The top 10% of funds in each category receive five stars, the next 22.5% four stars, the middle 35% three stars, the next 22.5% two stars, and the bottom 10% receive one star Funds are rated for ten-, five-, and three-year periods, and these ratings are combined to produce an overall rating. How the overall rating is calculated: for funds with at least three years and less than five years performance history, their three-year star ratings will be the same as their overall star ratings. For funds with at least five-year and less than ten-year records, their five-year histories will count for 60% of their overall rating and their three-year rating will count for 40% of the overall rating. For funds with at least 10 years of performance, the overall rating will be weighted as 20% for the three-year rating, 30% for the five-year rating, and 50% for the 10-year rating.

 

Copyright © 2020 Morningstar Deutschland GmbH. All rights reserved. Information in this publication: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

 

 

Generali Growth Equity Fund has acquired a share in the company Paradajz, d.o.o., Turnišče

 

 

The company Paradajz d.o.o. is a leader of growing high-quality tomatoes as its core product in indoor facilities, using cutting-edge and environmentally friendly technology – with high value-added, highly qualified human resources, top-notch consultants, and other possibilities offered by Pomurje, one of the most promising regions for specialised agricultural production in Slovenia.

The company is best known for its premium tomato brand, LUŠT. It boasts extensive know-how on integrated production of vegetables in indoor facilities heated by geothermal energy in Slovenia. LUŠT tomatoes are grown in the company’s greenhouses in the Prekmurje village of Renkovci, spreading over 90,000 m2 (9 ha) of glass-covered areas. Next to the greenhouses are a geothermal well and lagoons collecting rainwater used for plant watering. Integrated production of tomatoes is especially important in North-Eastern Slovenia, which has an excellent geographic position in strategic terms. LUŠT tomatoes are always freshly delivered to grocery shelves, which is reflected in their nutrient content, appearance and taste.
The equity investment of Generali Growth Equity Fund in Paradajz, d.o.o. will help the company further develop and expand its integrated tomato production in Slovenia, and develop distribution channels to deliver fresh produce from the greenhouses to final consumers within the shortest time possible. This supports the company’s vision of becoming the leading supplier and producer of vegetables for the largest food retailers in the Slovenian market and an important supplier for food retailers in countries bordering Slovenia.

Generali Growth Equity Fund is a special investment fund managed by Generali Investments, Slovenia’s oldest management company with subsidiaries in Croatia and North Macedonia. Generali Growth Equity Fund invests in ambitious small and medium-sized companies, offering support for growth financing, capacity expansion, sales network building and new product development as well as the acquisition of competitors and management of succession matters.

 

The Generali Growth Equity Fund investment in Paradajz, podjetje za proizvodnjo, trgovino, storitve in distribucijo, d.o.o., is co-financed by the European Investment Fund and the SID Bank. Generali Growth Equity Fund was founded in 2019 as part of the Slovene Equity Growth Investment Programme (SEGIP), which was launched upon the initiative of the SID Bank in cooperation with the European Investment Fund (EIF). It offers equity and quasi-equity financing to Slovenian SMEs and mid-cap companies. The SID Bank committed to contributing EUR 50 million of its own funds to this programme (without state guarantee), and the EIF has provided an additional EUR 50 million under the European Fund for Strategic Investments (with EFSI guarantee). By mobilising additional funding from other private investors through the SEGIP programme, overall investments for Slovenian companies could exceed EUR 150 million, which is 3-times the contribution of the SID Bank.