The former fund Lannebo Utdelningsfond transforms into a daily traded, purely sustainability oriented equity fund named Lannebo Sverige Hållbar. Read the interview with the managers, Charlotta Faxén and Peter Lagerlöf.
What sets Lannebo Sverige Hållbar apart from Lannebo’s other funds?
» First and foremost, we have a sustainability mindset integrated in all our funds and investment decisions. It’s in our DNA. At the same time, we have also seen a need in the market for a fund that is totally focused on active- and sustainable choices where sustainability has a more decisive role – with Lannebo Sverige Hållbar we take this additional step. As a unit holder you know what you get.«
Which type of company is interesting for the fund?
»In short, the fund targets companies whose products actively contribute to a more sustainable society. This might be companies that work with recycling and renewable energy, healthy foods and health care, or, for example, companies that support green architecture and sustainable construction. Common to these companies is that they all are at the forefront of sustainable solutions.«
What has been the biggest challenge so far?
» Sustainability is difficult to measure. For example, what aspects should be considered? Which facts apply? Which companies can be included or excluded? We have discussed these issues for some time on our Sustainability Board. Everything became much easier when we decided that for this specific fund let the company’s products and services determine. As a result, the portfolio companies are the ones that drive sustainable development forward.«
How does the selection process work?
» We identified three principal areas in order to be specific in the selection of companies that make a real difference: the company must strive for a more sustainable living, a healthier life style or be a reformer. We have a large contact network and rely partly on our own screening process and expertise. I also have to emphasize the tremendous advantage we have through our active management, which means that we have a deep knowledge of our investments due to our extensive analysis work.«
Can a company qualify in other ways?
» If a company receives the highest or second highest rating in either Lannebo’s internal sustainability analysis or by Sustainanalytics – the world’s leading independent institute for sustainability issues – then an investment may be relevant even if the business model is not fully applicable in our three principal sustainability areas.«
How many companies are included in the fund?
» Approximately 30 companies. Most of the investments are made in Sweden, but ten per cent can be made in other markets.«
What are your hopes with Lannebo Sverige Hållbar?
» Of course, we will generate a competitive return in the long run, this goes without saying. I am also pleased that we can offer unit holders an alternative that is clearly focused on sustainability. The need for good companies that drive development forward towards a sustainable society just gets bigger. The consumers’ power should not be underestimated, and it feels good to be able to contribute to driving that development forward.«
What is the most important climate and sustainability issue right now?
» In an international perspective, no doubt the management of CO2. «
Lannebo Sverige Hållbar
Background: The fund was formerly Lannebo Utdelningsfond, and was a so-called exclusion fund that does not invest in: weapons, alcohol, gambling, tobacco, pornography and fossil fuels. In line with a growing interest in sustainability, the demand for a fund with a clear sustainability focus has increased and therefore we are now adding additional sustainability criteria. The change was made on December 20, 2018.
Fund Managers: Charlotta Faxén och Peter Lagerlöf.