Co-founder of Affari Miei
January 18, 2024
If you are looking for information on fondo Arca Green Leaders (ISIN: IT0005396616) you’ve come to the right place because today we will analyze all of them together characteristicsi costsi advantages they disadvantages.
At the end of the article you will also find mine opinions about.
Let’s start!
This article talks about:
Who is Arca Fondi SGR
Arca Fondi SGR is an asset management company that belongs to the BPER Banca group. It deals with the management of investment funds and the main managed savings services offered by the BPER group, including capital accumulation plans (PAC) and savings investment plans (PIR).
Since 2023, the company has opened a private equity branch to also deal with investments in startups and promising unlisted companies.
The company currently has over €30 billion under management, making it one of the most important asset management companies in Italy. Furthermore, it is one of the most active in the management of funds that specifically deal with investing in ESG instruments, to promote environmental sustainability and climate transition.
Arca Green Leaders: the characteristics
Arca Green Leaders is a fund that allows you to invest in companies that best adopt the ESG principles (of environmental, social and governance responsibility) thanks to a flexible and dynamic management technique that allows exposure to financial markets to vary over time.
It is a mutual investment fund governed by Italian law which falls within the scope of application of Directive 2009/65/EC, belonging to the “Sistema Arca ESG Leaders”.
The fund has a duration until 31 December 2100 unless extended.
This fund is aimed at savers who seek capital appreciation in the medium/long term with a diversified investment, focused on companies that are most attentive to the climate transition and that have or are preparing plans to contain greenhouse gas emissions as desired from the Paris agreements.
Sustainable investment
Because it is very important to invest wisely sustainable?
Our world is asking us to do so: in fact, all international institutions are trying to promote an action plan that can promote a more sustainable future and many of these proposals closely concern the world of finance, which must act in a concrete manner to encourage a economic growth that is more attentive to the environment and citizens.
Il Green Deal Europeo it will be among the main drivers of change and will support actions capable of promoting greater use efficient of resources by helping to restore the ecosystem while reducing thepollution.
This fund is designed specifically to invest in companies that best adopt ESG principles, without exposing themselves too much to the volatility of the stock markets thanks to the flexible and dynamic allocation of the portfolio.
It is part of the range of Arca ESG Leaders funds designed precisely for an investor who is looking for returns but in compliance with the environmental and social sustainability.
In addition to Green Leaders you can also opt for Arca Blue Leaders, the fund that invests in securities that have a focus on the sustainable use of water resources and the marine ecosystem.
What the fund invests in
Arca Green Leaders invests in stocks on the European stock market of companies that are characterized by the efficient use of resources, containment of emissions, clean fuels and renewable energy production.
The Fund may invest in government and corporate bond financial instruments, including hybrid and subordinated bonds, both of “adequate credit quality” and of lower quality, money market instruments and equity financial instruments. Investment in equity financial instruments is envisaged for a minimum amount of 30% and a maximum amount of 70%.
As regards the geographical area of investment, it is Europe.
The benchmark
The fund is flexible, sustainable and responsible and It doesn’t have a benchmark, therefore we do not have any parameter that can serve as a reference if we have to look at returns and/or performance. It is fully managed actively by the managers.
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Subscription method and revenue distribution policy
In order to subscribe to the fund, the minimum initial payment is within the reach of all investors, given that we are talking about an amount of €100. Subsequent payments must also be equal to €100.
The fund is ad accumulation of the proceeds, with the coupons being reinvested in the fund: this type of policy is well suited to a long time horizon and is designed to make the most of the power of compound interest.
Investors can request the reimbursement total or partial of the shares owned.
Risk profile
The fund’s risk profile is identified by a score of 3 out of 7. Whereas 1 is the lowest risk score, 3/7 indicates a medium/low risk profile.
This is a product suitable for those looking for long-term investments that offer the maximum potential for share appreciation, and therefore not suitable for investors who focus on a short and medium time horizon.
This means that it is quite unlikely that poor market conditions will reduce the value of your investment.
Costs
Now we can move on to the analysis of costs of the fund: costs are a determining element in the choice of investment instruments, since they are the ones that impact the returns and the result of the entire investment.
Costs erode returns and therefore, you will agree with me, they must be monitored and weighted as much as possible.
If this concept isn’t totally clear to you, I recommend you download our free report in which I explain how an overly expensive product can really kill your performance.
So let’s now see what the costs of this fund are.
We have the entry costswhich are foreseen in fixed fees equal to €3.50, as well as exit costs.
Then we have the real fulcrum of the costs of actively managed funds, namely the management fees. They amount to 1.49% of the value of the investment per year. You pay these every year to the manager who takes care of the investment for you.
There are still the transaction costsequal to 0.39% of the investment value per year.
Performance scenarios
We still have one thing to cover before finishing our article, and that is performance scenarios.
These scenarios are automatically calculated using mathematical models and also take into account the direct costs of the fund.
As you can see, scenarios are shown for both exit after 12 months and exit after the recommended 4 year holding period.
The situation is as follows:
Scenario
Exit after 1 year
Exit after 4 years
Stress
-39,81%
-10,80%
Unfavorable
-10,46%
-1,28%
Moderate
3,39%
2,87%
Favorable
17,17%
5,67%
The stress scenario indicates the situation in which the market circumstances that occur are extreme.
The other scenarios were based on the worst, average and best performance of the product or a suitable benchmark over the last 10 years.
Of course, these are predictions because in any case the markets could have a very different trend in the future: exact predictions cannot be made.
Opinions of Affari Miei on Arca Green Leaders
We finished ours analyses of the fund and we saw together all the characteristics of Arca Green Leaders.
It is a mutual investment fund with an interesting and laudable objective, given that it promotes social, environmental and governance criteria and is committed to investing in companies that pay attention to these aspects.
Without a doubt the investment sustainable it is one of the cornerstones of recent years, and more and more investors choose their investment instruments based on values and thoughtful and environmentally friendly choices.
In addition to this, however, we must analyze and look at Arca Green Leaders for what it is, that is, a mutual investment fund.
If you have had the opportunity to read other articles here on My business You will have realized, very easily, that we are not huge fans of these products.
In fact, a mutual fund is often a complicated and inefficient product, with very high and disproportionate costs, which risks eating away at your returns and causing you to obtain a result that is not at all satisfactory.
If you are interested in understanding more about these products, we have a free report in which we explain the critical issues of these products in detail: reading it could help you save thousands of euros every year.
I want to suggest you think before making any type of investment because acting on impulse or making hasty decisions could really be harmful.
Precisely in relation to this I want to tell you that the study and the trainingin my opinion, are always the solution and the best way to go.
If you learn what is the basis of investing, if you know all the tools, if you learn to react to a wrong investment but above all if you learn to make only the right investments, then, as they say, you are already halfway there.
Remember that to make the right investments you first need a strategy: without strategy, in fact, you won’t go anywhere.
And to have a good strategy you need to have knowledge and awareness.
For example I can tell you about ETF: these are passively managed funds that replicate an index and can have costs that are much lower than those of actively managed funds. They are also more transparent, effective and efficient tools.
Conclusions
I hope that this review can be useful for you to study the characteristics of this fund and perhaps to be able to compare it with other funds you are undecided between.
Above all, I hope that it can be an incentive to study and become aware of your money and your savings.
If you are curious to discover the behind the scenes of managed savings, conflicts of interest and the very high costs of mutual funds, I recommend you download and read our free report in which we review all their critical issues.
In case you are interested in finding out more about how Affari Miei approaches the world of personal finance and investments, you can start here.
Before saying goodbye, still to stay on the topic of training, I would like to leave you some guide useful for starting your investment journey in a conscious and optimal way for you:
See you soon!
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