DD Equity Fund

Open-end investment fund

DD Equity Fund (DDEF) is a global sustainable equity fund with a net return target of 8% on average per year over the long term. The fund invests in at least 25 high-quality companies that are leaders in sustainability. At DDEF, the analysis of sustainability and financial aspects is fully integrated.

Features

• Globally broadly diversified equity portfolio with high-quality companies: leaders in sustainability, a strong business model, a proven track record of revenue and profit growth, a strong balance sheet position and an attractive valuation
• Aims for a net return of 8% on average per year over the long term and has no benchmark
• Daily tradable (open-ended structure)
• Managed by an independent fund manager
• Fully supervised by the Netherlands Authority for the Financial Markets

See also https://www.doubledividend.nl/beleggingsfondsen/dd-equity-fund/profiel/

DoubleDividend Management BV

DD Equity Fund is managed by DoubleDividend. DoubleDividend distinguishes itself in its investment philosophy quality, sustainability and a focus on the long-term come first. We believe that sustainable, quality companies are more promising in the long term, run fewer risks and therefore provide better financial and social returns. These companies are tested against the DoubleDividend Wheel of Five.

DoubleDividend Wheel of Five

  1. Sustainability: sustainability makes a positive contribution to the risk-return profile of a company. Sustainable companies have a long-term focus and are more innovative
  2. Business model: a strong business model is essential for the long term, we prefer companies with a strong brand, a solid market position and high margins
  3. Management & track record: a company and its management must have a proven track record of turnover and profit growth
  4. Balance: a strong balance sheet position is of great importance. It provides a buffer to get through difficult periods and sufficient opportunities to invest in your own business model
  5. Appreciation: paying a reasonable price for an investment is important to achieve the return target

Example sustainability analysis: Adidas

The sustainability analysis is an important part of the DoubleDividend Wheel of Five. Below is a concise version of the sustainability analysis of Adidas, one of the positions of DD Equity Fund. Today, sustainability is a catch-all concept and can mean many things. We have given concrete substance to the concept of sustainability through our investment policy. For DoubleDividend, the focus is on making society more sustainable in a broad sense. We have therefore identified three critical social trends that pose both opportunities and risks for companies, namely: climate change, well-being and ecosystems.

Welfare: Adidas products contribute to well-being because exercise is healthy and connects. In addition, Adidas is indirectly a very large employer in countries such as China, Vietnam and Bangladesh, because a large part of the production takes place there. Adidas does a lot to ensure that pay and working conditions at suppliers meet strict requirements. In addition to fair pay and safe working conditions, Adidas offers training and education to employees, which allows people to escape poverty and boost the local economy.

Ecosystems: As a major clothing manufacturer, Adidas has an important responsibility in protecting the ecosystem. The clothing industry is a major consumer of materials and water. Adidas' policy is mainly aimed at reducing the use of water and using less harmful materials in clothing and shoes. The goal is a 35% reduction in water use in the production of clothing at Adidas and suppliers. With regard to the use of materials, there are objectives regarding the use of innovative materials and the avoidance of harmful materials. Adidas also strives to use 100% sustainably produced cotton.

Climate change: Combating climate change is one of the spearheads of Adidas' sustainability policy. The policy is aimed at reducing both CO2 emissions and energy consumption, including by making production facilities, offices, retail locations and logistics more sustainable. Adidas's target is an absolute reduction in CO2 emissions of 3% per year. What is positive is that Adidas not only has objectives with regard to its own household, but also sets requirements for its suppliers, for example on the use of energy.

Investing in DD Equity Fund

For more information see the website DoubleDividend.