Stockholm (NordSIP) – Fundrella’s quarterly ESG Alignment Matrix is becoming a regular feature to look forward to for Nordic investors as well as the asset managers catering to their needs. On October 13th, the fund selection and reporting platform announced the results for the third quarter of 2021.
“We are happy to see that the Fundrella fund universe keeps growing and many of our asset managers have added more of their products onto the platform,” Wava Bodin, Fundrella’s Founder & CEO (pictured) tells NordSIP. “The fund universe is now strongly tilted towards ESG-focused funds, as cross-border asset managers choose to add their focus funds that are most relevant for the Nordic region,” she adds.
As previously reported, Fundrella’s tool calculates the alignment between Nordic institutional investors’ preferences and asset managers’ ESG features. The firm uses a proprietary set of more than 40 parameters, covering internal processes as well as exclusions and thresholds.
According to the latest results, the leaders amongst Nordic actors remain the same, Handelsbanken, SPP, Atlant and SEB. Things have shifted, however, at the top of the cross-border asset managers list. Columbia Threadneedle is still leading the pack, whereas Erste Asset Management has relinquished the second place to a newcomer, NN Investment Partners (expected to be acquired by Goldman Sachs next year).
“This achievement is a welcome confirmation that our products are well aligned with the needs of the investors in the Nordics,” comments Jaap Kraan from NN Investment Partners. “It also makes us proud to be able to cater to Nordic investors, as they act as leaders when it comes to sustainability.”
This time around, Fundrella goes beyond assessing asset management companies and pinpoints even specific funds that are best aligned with the ESG preferences of Nordic investors on their platform, featuring Nordic and cross-border funds in two separate lists.
Best in class among international funds, according to Fundrella, is Wellington Global Impact. “We are very pleased to receive this recognition for our sustainability efforts,” comments Dennis Kwist, Managing Director, Nordics, at Wellington Asset Management. “Our Global Impact approach seeks to improve access to, and the quality of, basic life essentials, reduce inequality and mitigate the effects of climate change. We are proud that it aligns so well with the ESG preferences of Nordic investors and with the UN’s Sustainable Development Goals.”
Wellington’s fund is closely followed by two of Erste Asset Management’s funds, Stock Environment & Responsible Bond Global Impact. Perhaps not surprisingly, the list features no less than four funds managed by the newcomer from the cross-border asset managers list, NN Investment Partners. NN (L) Climate & Environment, Health & Well-being, Smart Connectivity and Corporate Green Bond come in 5th, 6th, 7th and 10th place respectively.
Looking at the list of best-aligned Nordic funds, Handelsbanken’s products seem to dominate the top ten. The first place, however, is reserved for Danske Invest SICAV European Corporate Sustainable Bond and the bronze medal goes to SEB Green Bond.
“Fundrella is currently developing some new dimensions to our ESG Alignment functionality and will, hopefully, soon be able to offer different set of requirements and preference lists for different asset classes and geographic exposure,” comments Bodin. “We hope this will make our users even happier and our ESG Alignment Matrix more relevant for asset managers,” she concludes.
Photo courtesy of Fundrella