Stockholm (NordSIP) – On June 2nd, Lundmark & Co, a Swedish independent boutique manager, converted its European equity fund (Aktiv Europa) into a global environmental fund (Lundmark Climate Impact Fund).
According to the asset manager, the Aktiv Europa equity fund has had an environmental thematic investment philosophy since its original launch in 2007. Climate change has long been perceived as one of the key investment areas for performance and growth. By the end of 2019, environmental stocks represented over 50% of the portfolio. According to the press release, the company’s board of directors decided it was time to go” all-in” and changed the investment focus of the Aktiv Europa Fund to create the Climate Impact Fund.
Håkan Lundmark will be responsible for the fund. “We have during the years noticed that despite the unique thematic investment approach with a great deal of environmental tilt it has been difficult to ‘cut through the noise’ of all European equity funds,” says Håkan Lundmark, CEO of Lundmark & Co. “I have also asked myself how I can contribute to the planet beyond sorting waste and recycling at home. And yes, there has been some pressure from my eleven-year-old daughter, so there might be a sort of ‘Greta’ effect as well. This will be extremely enjoyable!”
Much like Europa Aktiv, the new fund will be able to hedge itself with futures in case of stock market downturns, according to the CEO. “That makes the fund unique among other green funds.”
Lundmark will be responsible for the fund. He has over 35 years of experience in the asset management industry. He started working at PKbanken in the 1980s and has held senior roles at Nordea, WASA Fonder, Lnsförsäkringar and Sweden’s central bank.
The fund will be actively managed and invest globally in environmental stocks. It will invest in companies that are directly or indirectly pursuing a more efficient use of global resources. Companies should help to solve the climate threat or be assessed to contribute to fulfilling the UN’s global sustainable development goals. The environmental sector is divided into subsectors like air and water purification, biofuel, emission control, energy control and storage, renewable energy, recycling, sustainable products, water distribution etc.
The goal for the fund is to reach an AUM of at least SEK1 billion within two years’ time. When that goal is reached, the company intends to lower the fixed management fee. The company’s philosophy is that the fixed fee should only cover the fund’s fixed costs.
Image courtesy of Håkan Lundmark