SEB has unveiled the SEB Global Sustainable Companies Fund, an index-linked global investment fund dedicated solely to sustainable companies.
According to ESG Today, the fund is classified as Article 9 under the EU’s Sustainable Finance Disclosure Regulation (SFDR), indicating it targets investments that bolster environmental and social sustainability, or that avoid significant harm to these objectives. SEB’s initiative aligns with the EU Taxonomy and supports the United Nations Sustainable Development Goals (SDGs).
Head of Sustainability at SEB Investment Management, Elisabet Jamal Bergström, highlighted the growing market interest in sustainable index-linked funds. “We see that the interest in index-linked funds is increasing at the same time as there is a demand for so-called Article 9 funds, with sustainable investments as a goal,” she stated.
The fund operates under the MSCI World Net Return Index, selecting approximately 500 companies from the benchmark’s pool of 1,500 across 20 developed countries. This strategic selection employs a systematic, rule-driven approach to ensure minimal deviation from the benchmark while incorporating robust sustainability metrics.
SEB reports that the current carbon intensity of the Global Sustainable Companies Fund is about 50% lower than its benchmark index, highlighting its commitment to lower greenhouse gas emissions. The fund considers multiple sustainability parameters, including the UN’s SDGs and EU environmental goals.
Portfolio Manager at SEB, Natasha Kubát, expressed pride in the fund’s sustainability focus and its broad global diversification. “We are proud of this fund, which has sustainability as its goal, while at the same time providing good global diversification. We can take into account many sustainability parameters such as greenhouse gas emissions, consideration of the UN’s goals for sustainable development and compatibility with the environmental goals within the EU’s taxonomy at the same time,” Kubát said.
Martin Rydell, Head of Index & Solutions at SEB, also commented on the fund’s design and objectives. “We have developed a cost-effective fund that provides access to our entire sustainability model, which will simultaneously generate a return and risk profile that is in line with the benchmark,” Rydell added.
Keep up with all the latest FinTech news here
Copyright © 2024 FinTech Global
