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    Öhman Fonder

    Fund Manager Page

    IN BRIEF

    Part of Öhman, a family-owned financial group, the asset management firm Öhman Fonder manages 95.5 billion SEK (approximately EUR 10 billion*) .

    * as of 2019
    *PRI Report 2020

    FACTS & FIGURES

    Total AUM (USD) 9.9 billion
    AUM SRI Strategies (SEK) 95.5 billion*
    % screened 100
    % ESG integrated 100
    SRI/ESG Team 2

    *PRI Report 2020

    MEMBER / SIGNATORY

    SRI strat. Firm-wide
    International Norm Violations
    Thermal Coal
    Anti-personnel mines & cluster munitions

    EXCLUSIONS

    SRI strat. Firm-wide
    International Norm Violations
    Thermal Coal
    Anti-personnel mines & cluster munitions
    Weapons of mass destruction

    News

    Research

    PUBLIC COMMITMENT

    SRI Awards & Recognitions

    In order to create value for our unit holders and society at large, we therefore focus on companies that set long-term goals for their sustainability work. These are companies that invest in innovation, that build structures to deal with tomorrow's climate challenges and that create an organization that is characterized by the inclusion and development of talent to be able to meet these challenges and transform them into opportunities.

    Research shows that investors with a long-term perspective tend to outperform the market and that companies that act long-term outperform in terms of sales, profit development and job creation. Long-term companies have the best conditions to drive change for real, so we as investors also allow us to see through the short-term noise that often characterizes financial markets.

    INTEGRATION & INTERNAL RESOURCES

    SRI/ESG Integration

    Policy for responsible investments covers all funds managed by Öhman. The policy applies the funds' direct investments in Swedish and foreign equities and bonds. In the case of indirect investments made via fund units and derivatives, the policy is applied as far as possible. Fonder which fall under the Nordnet brand are exempt from this policy. Öhman works with responsible investments through three strategies; opt-out, selects and influences.

    External Data

    The current ESG data and research providers are Refinitiv (raw ESG company data), Sustainalytics (raw ESG company data and issuer-specific analysis) as well as sell-side research, for example from the credit rating agencies. Öhman Fonder also uses public information and industry benchmarks/rankings as input.

    Exclusions

    To obtain decision material for our ethical analysis, we enlist the help of external consultants. The external consultants deliver a service that identifies companies that violate any of Öhman Fonders exclusion criteria. The information from the external consultants is recommendations. It is Öhman Fonder, which makes the final decision on whether a company should be excluded or not. Decide on exclusion shall be taken taking into account the common interest of the unit holders. The internal control function ensures daily that the funds' holdings comply with current placement instructions. Deviations must be reported immediately to the responsible manager, CEO and the head of responsible investment. The fund's manager must immediately liquidate the holding that contravenes the fund's investment instructions. When assessing, the unit holders' best interests must be taken into account (Translated from Swedish).

    Organisation

    Committees & Teams

    The policy is established by the Board of Directors of Öhman Fonder. The policy must be established and approved at least once a year even if no changes are decided. The Responsible Investment Committee consists of representatives of various parts of the organization and is led by the CEO. The committee is responsible for the implementation of the policy and the development of Öhman's work with responsible investments.

    • The committee decides on overall positions, for example regarding the view of controversial activities in the companies, and about which companies should be subject to special dialogue. The Committee may also decide on the exclusion of companies from the funds.
    • Responsible for updating this policy is the CEO or the person appointed by the CEO.
    • The Investment Manager is responsible for ensuring that the policy is integrated into the respective fund's investment instructions and thus is completed in the administration.
    • The head of responsible investment is responsible for the implementation of the policy and investment instructions in the management process.
    • The head of responsible investments must submit a report to the board annually.

    ACTIVE OWNERSHIP, ENGAGEMENT & STEWARDSHIP

    Engagement Team

    The engagement team consists of the board, the Committee for Responsible Investments, CEO, Investment chief, Chief for Responsible Investments, Managers, and ESG analysts (translated from Swedish).

    Proactive / Reactive Engagement

    Öhman Fonder continuously monitors the portfolio companies to in one be able to identify companies where there is a need at an early-stage shareholder engagement. Information is obtained through published information, internal and external analysis and in direct dialogue with the companies. Öhman Funds for dialogue with identified companies both proactively and reactively. In those cases, the fund company believes it improves the opportunities to influence companies, it works together with other investors and in where applicable together with other relevant stakeholders.

    All initiated engagements follow Öhman Fonder's process for escalation. Escalation usually takes place through direct contact with the company in the form of in-depth issues and views. Öhman Fonder can in the extreme case choose to sell the shares in a company if it considers that the company is in breach the management company's guidelines and the shareholder involvement do not demonstrate the desired effect. However, Öhman Fonder can choose to continue the dialogue with a company even after a possible divestment.

    Engagement Partnerships

    As a financial stakeholder that provides and lend capital to companies, we believe that we have a right to work with them and engage on ESG issues. Öhman aims to try encouraging companies to act sustainably so that they reduce their operating cash flow volatility over time and strengthen their credit profile. Öhman Fonder believes that ESG investing is not only about investing in issuer's who already demonstrate good ESG profile, but also engaging with those who want to improve and are willing to work with lenders to achieve this.

    The ESG team is primarily responsible for the engagement but are working closely with the PMs to identify potential ESG issues and issuers. The results from the engagements with issuers are regularly discussed at monthly meetings with the PM's and shared via our front-desk data and research system.The internal engagements are usually conducted pre-investment when it identifies a new issuer. Post investment engagements usually are initiated if it identifies a risk or issue, such as lack of transparency, or as a part of collaborative engagements.

    Engagement Cases

    A normal engagement process starts with a letter to the company (IR) addressing the issue and asking for a meeting. If the dialogue is constructive and fruitful, it reaches to IR or the person most relevant to talk to within the company. If a company is reluctant to talk, it addresses the CEO or Chairperson. Öhman also seeks to work together with other investors when a case is challenging. Engagement cases are discussed within the ESG team on a weekly basis and with the relevant fund managers when needed.

    Proxy Voting

    Öhman Fonder's CEO is responsible for corporate governance issues. The CEO, or a person appointed by the CEO, reports statements made by the fund company at individual AGMs, once a year, to the Board of Directors. Monitoring of general meetings takes place with internal system support. It is the responsibility of each analyst to evaluate the proposals on their companies AGM agenda and to decide whether voting is required. Voting can take place through a proxy, a custodian bank or through personal attendance at the general meeting. The approach is determined on a case-by-case basis. In cases where the fund company has a different opinion and decides to vote against a proposal, it must be communicated to the company prior to the general meeting.

    SOURCE & RESOURCES

    Company Website
    Corporate Responsibility
    Responsible Investing
    SRI Reporting
    SRI Insights & Research
    UN PRI Transparency Report