Solidarity Funds and Socially Responsible Investments are two possible approaches.
Are you a solidarity saver or a responsible investor? But maybe you deserve both qualifiers? Not so easy to navigate. Because solidarity savings and socially responsible investment have common points. "In both cases, it's about giving meaning to your savings without giving up your capital, since we are in the world of investment and not of the gift"explains Hervé Guez, director of equity and interest rate management at Mirova.
Solidarity investments cover a broad spectrum, from the passbook to the term account, including life insurance, employee savings funds, shares and unlisted shares.
Beyond this common mission, solidarity savings and socially responsible investment (SRI) are two distinct approaches. SRI is a stock and bond management process that includes not only traditional financial ratios, but also extra-financial criteria related to the environment, social and governance. SRI funds can be subscribed directly or as part of a life insurance contract, for example, since these are SICAVs and funds invested in listed securities.
Solidarity finance: five winners and a law
For their part, solidarity investments cover a broad spectrum, from the passbook to the term account, including life insurance, employee savings funds, shares and unlisted shares. A varied investment universe whose ultimate goal is the financing of solidarity businesses. "The solidarity saver agrees to share his performance, either in the form of a donation for sharing products or by funding solidarity businesses via the 90-10 funds. SRI does not answer the same problem, since there is no performance sharing ", adds Imad Tabet to the Crédit coopératif.
A stronger degree of commitment
Solidarity finance therefore requires a higher degree of commitment, since the activities financed are chosen according to their social or societal utility. "Solidarity savings directly finances solidarity-based businesses that are not listed on the stock market. This is a non-cash investment. It is therefore limited to 10% of the portfolios in the context of solidarity funds in order to ensure the liquidity of the products ", adds Hervé Guez.
Are we becoming responsible savers?
These solidarity funds dedicating 5 to 10% of their assets to the financing of solidarity enterprises are managed, for the remaining 90%, with an SRI approach. It is therefore fair to say that solidarity funds are SRI, but, conversely, only a small fraction of SRI funds are in solidarity. For the record, the outstanding amount of SRI reached 310 billion euros at the end of 2017, according to the French Association of Financial Management, against 11.5 billion euros for the whole of solidarity finance.