Stockholm (NordSIP) – Swedbank Robur launches Global Impact, an equity fund focused on companies that contribute to meeting the United Nations’ Sustainable Development Goals (SDGs). Global Impact invests in companies from all over the world, including emerging markets, whose operations help solve global challenges.
The fund will be co-managed by David Stenlund and Johan Eriksson. Stenlund approximately 15 years of experience within quantitative fund management, and Eriksson adds another 20 years of experience to the duo.
In a press release, Stenlund comments (in Swedish): “The Fund’s assets will contribute to meeting one or more of the UN SDGs. At least 15 percent of the company’s turnover should come from activities that contribute positively to these goals. In most cases, the contribution is significantly higher. To support our stock selection, we work closely together with Swedbank Robur’s sustainability analysts, and we have access to a database of sustainability data and company facts for nearly 10,000 companies.”
The investment process starts with a norms-based screening. The strategy excludes companies with sales related to tobacco, alcohol, gambling, weapons and pornography, the majority of fossil fuel companies as well as companies that violate international conventions and norms.
The managers narrow down the universe of investable stocks by using the SDGs as a guiding principle. Example of companies who contribute to the SDGs are those that help preserve land and sea ecosystems, through waste management, water treatment and emission control for instance. Companies that have a positive effect on climate change through technological solutions such as alternative energy, energy efficiency and green buildings are another type of holdings the fund targets. Other investment areas may include the sustainable food industry, sustainable cities and low-cost housing and sanitation technology, as well as healthcare companies that provide treatments for the world’s most serious diseases.
In this universe the managers apply a quantitative management process which will help select approximately 80 to 100 positions which show an attractive valuation, strong earnings growth, and stable cash flows and balance sheets. The companies are located worldwide, often in emerging markets such as China and India. The investment horizon is expected to be between five and ten years.