European-centric venture capital targeting securities as collateral.

The financial landscape is constantly evolving, and investors are increasingly seeking opportunities that align with their values. Enter the VM Sustainable Equity Fund, a groundbreaking investment vehicle that provides access to promising European small-cap stocks, all while prioritising sustainability.

Managed by VM Vermögens-Management GmbH, this fund meticulously excludes companies with controversial business fields and practices at the industry level, ensuring a clean and responsible investment portfolio. The exclusion criteria include business models in fossil energy, nuclear energy, armaments, alcohol, and tobacco.

The fund's investment strategy is twofold. It prioritises companies that are leading in their respective niches and have strong financial performance. To reach a final investment decision, these companies are compared with the ESG criteria developed by VM, using data from the sustainable rating agency ISS ESG.

The VM Sustainable Equity Fund offers a diverse mix of small, medium, and a few large-cap stocks, with a focus on European companies (excluding the UK). This strategic approach allows the fund to invest in quality stocks from specialized, untouched European small and mid-cap markets, thereby tapping into attractive value growth opportunities.

Michael Woischneck, the fund manager for sustainable investments at VM, oversees the selection process. Companies chosen for the fund exhibit high profitability and demonstrate consistent earnings growth. The portfolio, which consists of 30 to 40 stocks, is carefully curated using a bottom-up approach, ensuring that the fund invests in companies that are globally leading in their niche at the time of investment.

Bernhard Fünger, CEO of Monega, explains the fund's aim: "We want to provide access to promising European small-cap stocks without compromising on sustainability." Meanwhile, Jürgen Lenders, partner at VM Vermögens-Management GmbH, comments, "Investing in quality stocks from the European small and mid-cap space offers opportunities for attractive value growth."

In conclusion, the VM Sustainable Equity Fund (ISIN: DE000A2P37L3) represents a unique opportunity for investors seeking to support the growth of responsible businesses while capitalising on the potential of Europe's small and mid-cap markets.