Lannebo Norden Hållbar

All Lannebo funds integrate sustainability as part of the investment process, whereas sustainability has a pivotal role for Lannebo Norden Hållbar. Lannebo Norden Hållbar was launched in June 2018 given the potential we see in the Nordic region as an investment area. Many of Lannebo’s funds invest in Nordic companies, but no fund has had a clear focus on individual stock picking among listed companies that all together represent the diversification that the Nordic region provides. For example: Swedish companies within industrials and exports; Danish companies within healthcare and medtech; and Norwegian companies which allow for exposure to raw materials and shipping. The Nordic region as an investment area also means diversification of currency exposure.

Lannebo Norden Hållbar is an actively managed fund where the fund manager selects individual stocks of Nordic companies. The portfolio is concentrated around 30 companies, where the managers evaluate the potential for rising profits and increasing dividends over time. The investments can be made in both large- and small caps on all Nordic exchanges in all sectors.

The fund is suitable for those who

• want to invest in the Nordic stock markets and seek a diversified portfolio of companies of different sizes, in different sectors and with different currency exposure
• want to invest in companies that have the best sustainable business practices and contribute to a more sustainable society through their products and services
• want an actively managed fund with investments based on a clear understanding of each individual company
• can accept potential return fluctuations and have an investment horizon of at least five years

On October, 29 2020, Lannebo Nordic Equities became Lannebo Norden Hållbar. Sustainability is an integral part of the investment process for all Lannebo funds, whereas sustainability is even more central for Lannebo Norden Hållbar – in addition to the exclusion criteria that already exist for all Lannebo funds.

The fund managers make active investment decisions through analyses and individual stock selection. Focus is on each investment and its long-term potential. We choose to invest in companies whose business models we understand and where we see significant potential over the long term, at a reasonable level of risk. The stock’s valuation is also central to the investment decision. We like companies with revenue growth, both organic and acquired, with a cash flow that is sufficient for both dividends and acquisitions.

The goal is to generate as good return as possible through active management at a reasonable risk. The fund’s performance is compared with the VINX Benchmark Cap SEK_NI. Returns over time will deviate from this benchmark as the fund is actively managed.

All Lannebo funds integrate sustainability as part of the investment process, whereas sustainability has a pivotal role for Lannebo Norden Hållbar. The fund, like all Lannebo mutual funds, is actively managed whereby the fund managers select shares according to their own analysis and assessment of companies they believe in long-term.

The fund invests in three areas:

1.  Sustainable living (recycling, renewable energy, energy efficiency, etc.)
2. A healthier lifestyle (health care, recreation, healthy food / sustainable food industry, pharmaceuticals, etc.)
3. A better world (green buildings, sustainable cities, etc.)

High sustainability rating
If the managers wish to invest in a company that does not clearly contribute to a sustainable society, the company must maintain the highest, or second highest, assessment in Lannebo’s internal sustainability assessment, or in the sustainability analysis from Sustainalytics.

Exclusions
Lannebo Norden Hållbar does not invest in companies that violate international conventions or in companies that produce and/or distribute controversial weapons. The fund also refrains from investing in companies in which more than 5 per cent of the company’s turnover comes from the production and/or distribution of tobacco, cannabis, alcohol, weapons, gambling or pornography. The fund also refrains from investing in companies in which more than 5 per cent of the company’s turnover comes from extracting of fossil fuels (coal, oil and gas).