Stockholm (NordSIP) – Sydinvest, the Danish investment association specialising in high-yield bonds and emerging markets, last week launched Sydinvest Morningstar Global Markets Sustainability Leaders, a new fund aimed at investors wishing to invest in the world’s most sustainable businesses.
The passively managed fund will invest in the companies considered to be the top 100 global leaders in sustainability, with investments made on the basis of a balanced spread of regions and sectors.
As its name indicates, the fund’s investments will track Morningstar indexes listed in the Morningstar sustainability index family, where companies selected for the fund will be considered on the basis of ESG factors. The management of the portfolio will aim to get as close as possible to the composition of investments in the Morningstar index benchmarks.
The passive management also means costs will be somewhat lower than Sydinvest’s actively managed equity funds with an annual cost of 0.5%, ergo that the fund is expected to yield returns following the Morningstar benchmark minus the 0.5%; there are therefore no objectives for the fund to perform better than the benchmark.
In terms of risk the fund is on the same level as Sydinvest’s other global equity funds. This means the fund’s return in the longer term is expected to remain at the same level, with current long-term expectations for this type of share being returns of 7% annually, minus costs.
Sydinvest is one of Denmark’s leading investment associations totalling 75,000 investors, 38 different funds under management and DKK 52 billion in AUM.