Stockholm (NordSIP) – 100% of fund expert participants to the eleventh edition of the Swedish Fund Index (SFEI) expect sustainable investments to become still more important to their operations in the future, an increase of 40% since 2012. The report also notes that fund experts expect the strongest market developments to be in Asia (excluding Japan) over the course of the next 12 months.
The Swedish asset management industry maintains a strong and increasing commitment to sustainable investment, the study finds. Among fund managers actively investing in funds a gradual refinement of management strategies to reflect this has been detected, while new fund types with a sustainability focus, such as green bond funds and fossil-free funds, show significant capital inflows. These developments are clearly reflected in SFEI research since 2013, and the latest report, based on a survey conducted 16-30 May 2017, confirms the trend.
“Green bonds are a segment of sustainable investment that has really established itself in Sweden in recent years. 20% of participants in the SFEI survey stated that they invest in green bond funds, with another 20% considering doing so,” says Peter Beckman, Vice President of SPP Fonder. “Growth for green bonds as an investment is a gratifying trend that can contribute to more sustainable investment solutions, while simultaneously implementing more green investment projects.”
Beckman also sees potential for continued capital inflows in fossil-free funds.
“This year, about 30% of fund experts answered that fossil-free investments is a very important criterion for sustainable investment, and over half would increase capital flows to fossil-free funds if the fund offer was better. We at SPP Fonder take that message to heart, though we are already at the forefront with the fossil-free criteria embedded in our Plus funds directing investments to companies positioned to meet climate challenges. We also want to encourage other fund managers to invest more in this fund category,” Beckman says.
The SFEI report can be found here.