Lannebo Sustainable Corporate Bond

Companies seeking financing have traditionally looked to conventional bank loans. Now many companies turn to the capital markets to fund their business, which has increased the potential to invest in corporate bonds. Nordic Companies are also at the forefront of the growing market of Green Bonds – Bonds that are specifically targeting environmental or social issues.

Lannebo Sustainable Corporate Bond invests in Green Bonds, corporate bonds from issuers that are producing environmental solutions or from companies that themselves are graded as highly sustainable. The fund primarily invests in FRN-loans which makes the fund’s performance less dependent on changing market rates.

Investment policy

Lannebo Sustainable Corporate Bond fund is an actively managed fixed income fund that primarily invests in corporate bonds from issuers in the Nordic region. The fund invest in both investment grade and high yield bonds but the average credit score must be at least investment grade, BBB-.

The fund is suitable for those who

• Want a higher return than traditional fixed income funds but at a lower risk than equity funds.
• Want to invest sustainably in a better future.
• Want exposure to Nordic green corporate bonds.
• Want an actively managed fund where a thorough company analysis creates long-term returns.

Each investment is evaluated individually both in terms of financial stability and sustainability, and we invest only in bonds issued by companies we are familiar with. We build a balanced fund of corporate bonds from various industries, geographic regions and varying risk profiles. Investments are made in corporate bonds issued by stable, sustainable companies with strong balance sheets. The aim of the fund is to generate stable returns over time.

All Lannebo funds integrate sustainability as part of the investment process, whereas sustainability has a pivotal role for Lannebo Sustainable Corporate Bond. 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 four areas:

1. Green bonds
2.  Sustainable living (recycling, renewable energy, energy efficiency, etc.)
3. A healthier lifestyle (health care, recreation, healthy food / sustainable food industry, pharmaceuticals, etc.)
4. 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 Sustainable Corporate Bond 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).