The investment platform my sustainable impact, my-si, has started in Germany.
The my-si investment concept envisages generating attractive returns with sustainable investments and at the same time creating a social benefit. Investors choose ESG-approved fund strategies according to five different risk classes according to their personal risk appetite and make a contribution to a better world.
Tobias Schmidt, CEO of my-si says: “Investing money for old-age provision, risk protection or for one’s own financial independence is an important issue for each of us. If we want to achieve anything in the process, we have to generate sufficient returns. At my-si, we think investing a step further, because if we want to improve our future and that of future generations, we have to act today. my sustainable impact invests in a sustainable, return-oriented manner and at the same time donates part of the proceeds: With us, investors support one of ten non-profit organizations and thus the sustainability goals of the United Nations. Specifically, we from my-si donate 1/3 of our advisory fee to the project that our investors personally select. “
At the start of my-si, ten organizations were selected that represent the entire range of UN sustainability goals: the German AIDS Foundation, Reporters Without Borders, Kindernothilfe eV, WorldVision Germany eV, humedica eV, PRIMAKLIMA eV, Veterinarians Without Borders eV, Deutsches Rotes Kreuz eV, TERRATECH Förderprojekte eV and Heinz Sielmann Foundation. They all have the donation seal of the German Central Institute for Social Issues DZI.
The my-si investment strategy provides that all investment decisions are generated by intelligent algorithms. In order to optimize a portfolio, my-si works with the “Equal Risk Contribution Approach”. With this method, the various asset classes in a portfolio are weighted so that the risk contribution of the individual asset classes to the overall risk of the portfolio is as large as possible. In addition to the good diversification, the advantage lies in the stability of the portfolio. In order to be prepared against short-term, extreme market fluctuations, my-si has integrated a “market stress indicator” into this system. It gives signals and adjustment rules in the event of extraordinary market distortions.
my-si invests exclusively in ESG-checked funds with an ISS ESG fund rating of at least four stars. From the remaining fund universe, the funds are selected whose risk / reward ratio achieves a top rating in f-fex fund ratings, i.e. a rating of A or B. Tobias Schmidt: “We have been dealing with the topics of fund ratings and fund selection for more than 25 years and, based on this experience, have developed our own, forecast-optimized rating that provides us with valuable assistance in tracking down future outperformers. In this way we ensure that only top funds with the best risk-reward ratio are in the ESG portfolio. “
In a direct comparison with the average of all funds in the mixed fund categories suitable as benchmarks, the performance of my-si ESG strategies is clearly above the benchmark. “In 2020, our market stress indicator reacted to the correction in good time, and we were thus able to absorb the worst. But even before and after the market correction, we performed very well in all five risk classes compared to the respective benchmark. The long-term achievable return naturally depends on the chosen risk class. In the medium risk class, we consider an average return of 5-6 percent to be easily achievable in the long term. A world without interest does not mean that there are no more returns.”
Investors can invest with my-si from a deposit of EUR 1000 and top this amount up from EUR 50 per month in a savings plan. Five strategies with different risk profiles are available. my-si works completely digitally, that means: investment concept, advice, user interaction, account opening, control of your own charitable contribution, selection of the non-profit organization,
Reporting, billing, etc. are implemented completely online, quickly and at attractive conditions.
“Despite digitization, my-si is a real, that is, interactive advisor”, says Tobias Schmidt: “Investors can adopt the sample portfolio 1: 1 or use this to put together their own portfolio. They have the same freedom in choosing the projects to which the charitable contribution should go. “