Stockholm (NordSIP) – Due to the disclosure requirements imposed on large publicly listed companies and the increasing share of those that pertain to ESG, sustainable investing is often most accessible when it is limited to large companies.
To address this hurdle, Schroders has launched two new funds for investors focused on small and micro-cap companies in the Nordics, a region which the asset manager describes as characterized by “cutting-edge technology and superior growth”. Both funds, SISF2 Nordic Smaller Companies and SISF Nordic Micro Mid Cap, will be classified as Article 8, according to the European Union’s Sustainable Finance Disclosure Regulation (SFDR).
“We have seen a very high level of IPO activity in the Nordic region in recent years with more than 350 alone in the last three years. The region leads global rankings when it comes to both innovation and sustainable development. Many Nordic companies combine sustainable and scalable solutions to global issues with cutting-edge technology. This provides a solid base for growth and we are very excited to launch these new funds,” Henrik Jonsson, Head of Nordic region, Schroders, commented.
The two funds will be managed by Nordic equity experts and specialists in small and micro caps, Jan Brännback and Janne Lähdesmäki, who recently joined Schroders from Aktia Asset Management. They are based in Schroders’ Helsinki office and will work closely with the Global and International Small-Cap teams, Schroders broader European equity managers and the rest of the business.
“I am looking forward to capturing value across small/micro caps for our clients. We often see that equity research is heavily skewed towards large caps and may not fully address the potential in small/micro caps with limited or no sell side coverage. With these new funds we are now able to focus on this area and offer an excellent opportunity for our clients,” Brännback added.
The SISF Nordic Smaller Companies will target a median market cap of €800 million and will invest in a concentrated portfolio of approximately 45 companies, while the SISF Nordic Micro Mid Cap will target a median market cap of €200 million and encompass a concentrated portfolio of approximately 60 companies.
“Our Nordic stock selection will be supported by close co-operation with Schroders’ sector specialists and global small cap investment resources. With sustainability being front of mind for investors, I am confident that the depth of Schroders’ proprietary sustainability-focused tools will help support marketleading investment insights about smaller Nordic companies, further strengthening the investment process for our clients,” Lähdesmäki concluded.