Below you will find general information about Lannebo’s sustainability work linked to the funds and discretionary mandates. Fund-specific sustainability information can be found on each fund’s page.
Past performance is no guarantee of future returns. The money you invest in a fund can both increase and decrease in value and it is not certain that you will get back the full amount invested.
The integration of sustainability risks and opportunities
Lannebo is an active manager that strives to invest in long-term sustainable companies. This is characterized, for example, by companies that have innovative, socially beneficial products, well-developed control systems for their impact on the outside world, quantifiable goals linked to sustainability, an ambition to be a leader in sustainability in their industry and/or well-developed strategies for sustainable growth. To identify these companies, we integrate sustainability risks and opportunities into our investment decision-making process.
We believe that analyzing and trying to avoid clear sustainability risks when selecting holdings for the fund has a positive impact on the fund’s risk-adjusted return over time. Responsible companies, which we believe have lower sustainability risks, have a greater chance of long-term profitability and thus greater potential to generate a better return for the fund’s unitholders at a lower risk and over time. On the other hand, a company that, for example, violates international conventions, has poor business ethics or lacks a clear sustainability agenda may incur large costs or a bad reputation that negatively affects the value of the investment.
Identification, assessment and management of negative impacts
Lannebo’s main objective with fund management is to generate as high a risk-adjusted return as possible for the unitholders, taking into account the funds’ investment policy and risk profile.
Lannebo integrates sustainability factors into the investment process resulting in more informed investment decisions, which in turn leads to better results for the fund unit holders. Through corporate governance, Lannebo also acts to promote the conditions for long-term sustainable development in the companies in which the funds have invested.
Main negative consequences on sustainability factors can be, for example:
- social, in that the company is involved in child labor, forced labor or restriction of freedom of expression,
- environmental, in that the company emits large amounts of greenhouse gases and lacks emission reduction initiatives; and
- personnel-related, as the company lacks gender equality and diversity management.
Lannebo is a significant investor in many companies and has the opportunity to influence the companies in a more sustainable direction. Therefore, we use this opportunity and take measures to improve the companies’ sustainability work and reduce negative consequences on sustainability factors included in our sustainability analysis. We do this by engaging directly with company management. Our fundamental company analyses give us a solid foundation and the opportunity to actually influence the companies because we have familiarized ourselves with and have specific knowledge of their sustainability work. The demands and expectations we as investors place on companies help them to navigate and are usually appreciated by the companies. It is an effective way to make a real difference as an investor. By analyzing, and if necessary, actively working with our fund holdings, we contribute to sustainability issues being raised among both larger and smaller companies.
The purpose of Lannebo’s ownership is to promote good development in the companies in which Lannebo’s funds invest. The ownership role shall be exercised in such a way that the value of the companies and thus the funds’ long-term returns are developed in the best possible way in the common interest of the fund unit holders. Lannebo believes that active, commercial and responsible ownership is an important part of the assignment from the fund unit holders and that good corporate governance promotes the possibility of long-term sustainable development in the companies. Lannebo also works to ensure that the companies in which the fund company invests act in accordance with national and international laws and conventions, relevant codes, guidelines and otherwise in accordance with good practice on the stock market. Lannebo also wants to work to ensure that public confidence in share ownership and the stock market is good and that the regulated markets in the Nordic region have good conditions to remain attractive and efficient marketplaces.
Codes of conduct and international standards
Lannebo signed UNPRI (United Nations’ Principles for Responsible Investments) in 2013. It is a voluntary framework consisting of six principles for including environmental, social and governance aspects in its investment decision-making process and in its ownership practice. The fund company also follows the Swedish Code of Corporate Governance and the Swedish Investment Fund Association’s guidelines and manuals, which contain guidelines for responsible business. Lannebo also supports the Paris Agreement and has the ambition to invest in companies that act in line with the Paris Agreement. This is specifically evaluated in the sustainability analysis.