ESG equity, sustainable high yield – and investment gaps
This week, AP1, the Swedish pension buffer fund, appointed Hermes Investment Management to manage its $400mn Global High Yield credit investment mandate as part of its drive to improve diversification and ESG into its global high yield investments (NordSIP). In this week’s NordSIP deep dive, we profile sustainable entrepreneurs Nigel and Fiona Grier of Singapore-based Integrative Design & Project Management, an interdisciplinary business labouring to develop green energy infrastructure in Southeast Asia, on their search for Nordic investors. One gap that reveals itself is the lack of interest in sustainability on the Asian side coupled with a shortage of understanding of SME investment in Asia in Europe and the Nordics… Must Read! (NordSIP) Storebrand’s new Global ESG fund, managed by Henrik Wold Nilsen, is an index-based global equity fund with UCITS status investing widely in various industries in developed markets and follows the MSCI World NTR benchmark. “An attractive alternative at a reasonable cost,” says Storebrand CEO Jan Erik Saugestad (NordSIP). Gothenburg Real Estate company Platzer issued a secured green bond through SFF worth SEK274mn with a maturity of five years to be listed on Nasdaq Stockholm, continuing to meet the firm’s sustainability objectives (NordSIP).
Heard on E-Street
BNP Paribas takes a look at China’s emergence as the global leader in environmental policy with the largest green bond market in the world and the void left by Trump’s America (BNP Paribas) while Eric Ng considers why Asia remains lukewarm towards sustainable investment (South China Morning Post) , Norway triggers intense political debate over the so-called “Tesla tax” that would remove EV tax exemptions for cars weighing over 2 tonnes (ClimateActionProgramme.org), and UN special representative for sustainable energy Rachel Kyte speaks out on the 7 top challenges facing the sustainable energy agenda (Devex). Finally, researchers Ralf Barkemeyer, Philippe Givry and Frank Figge publish an intriguing paper on patterns and trends in sustainability-related media coverage across a set of ten sustainability patterns,
Quote of the Week
“Ethical standards are important, but I’m also interested in long-term investment potential. I think companies that can develop clean energy solutions have the potential to deliver sustainable returns into the future” – consultant ecologist and Kames ethical equity investor Sean Bridge tells Morningstar which funds he thinks can deliver this (Morningstar).
Question of the Week
Which Swedish sustainable global equity fund was recently awarded the coveted five-star appraisal from Morningstar, with a whopping 91.5% performance in the past decade?
Famous Last Words
“We are all leaders whether we like it or not. There is always someone we are influencing – either leading them to good or away from good” – Leif Ericsson, the first European to settle in North America over 1,000 years ago, as quoted by Anne Kari H. Ovind, Norway’s ambassador to Canada, on why the Nordic Solutions on sustainability are a natural fit for the country (Huffington Post).
Have an environmentally influential weekend,
Your NordSIP team
Image: (c) NosorogUA – shutterstock