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Morningstar Rating (3 years)Missing data
Fact Sheet (KIID)
During the month, the credit market has performed strongly while government interest rates have risen. Premiums in addition to European Investment Grade (IG) government bonds fell by 0.13% and European High Yield premiums by 0.36%. Unrest and further measures linked to Omicron have not affected the market to a great extent. The Fund has had a greater underweight in European IG in favour of SEK, which contributed negatively to relative returns during the month. The Swedish credit market has been affected by regulations at the turn of the year, which has resulted in weak liquidity. Demand has been high while the supply of corporate bonds has been low, but European credits have provided better returns during the month. The Fund reduced risk in November, which also contributed to the Fund performing worse than its benchmark index during December. During the month, the Fund closed its short position in U.S. Treasury Bonds. With energy prices soaring, the month's returns in relative terms have been negatively affected by the fact that we refrain from investing in companies with a high proportion of fossil fuels. If energy prices could be balanced, this would be positive for the Fund. Our assessment is that these exclusions will benefit us in the long term and we will focus on sustainable companies with improving credit profiles, investments that we believe will contribute to the Fund's long-term returns.
Helena Frisk has managed Swedbank Robur Corporate Bond Europe, Corporate Bond Europe IG, Corporate Bond Nordic, Räntefond Flexibel and Räntefond Kort Plus. She has an education in finance and started at Swedbank Robur in 2016. Experience and education She has previously managed Swedbank Robur Företagsobligationsfond High Yield (2016–2020) and Corporate Bond Europe Mix (2018–2020). She has also worked as a trader in credits (2010–2016) and risk controller (2009–2010) at Swedbank Markets as well as a position as a fund analyst at Söderberg & Partners (2006–2009). Helena has an M.Sc. in Applied Mathematics in Analytical Finance and a B.Sc. in Economics from Mälardalen University (2003–2007). She has also studied Valuation and Corporate Finance through SSE Executive Education at Stockholm School of Economics (2015).
Johan Forsblom manages Swedbank Robur Corporate Bond Europe, Corporate Bond Europe IG, Corporate Bond Nordic, Räntefond Flexibel and Räntefond Kort Plus. He has many years’ experience of the fixed-income and credit markets and joined Swedbank Robur in 2004. Experience and education He has previously managed Swedbank Robur Företagsobligationsfond High Yield (2016–2020) and Corporate Bond Europe Mix (2018–2020). He has also worked as a fixed income and currency trader (2009–2016), product developer (2007–2009) and operation coordinator (2004–2007) at Swedbank Robur. Prior to this he also worked as a financial advisor at Skandiabanken (2000–2002). Johan has an M.Sc. in Business Administration, major in Finance, and a B.Sc. in Economics from Stockholm University (2002–2004). He has also studied Valuation and Corporate Finance through SSE Executive Education at Stockholm School of Economics (2015).
The fixed-income team manages funds encompassing everything from traditional money market and bonds to global corporate bond funds within both Investment Grade and High Yield. This means you can find products with exposure across the entire interest-rate spectrum. The fund managers have comprehensive knowledge and extensive experience of the fixed-income and credit markets in both the Nordic and European regions. The team of 13 portfolio managers consists of two groups: the fixed-income team, which manages our fixed-income and bond funds, and the credit team, which manages our corporate bond funds. Together they have assets under management of around SEK 420 billion.
Our actively managed fixed-income funds apply an investment strategy based on the fund managers’ projected interest rate trend compared with the market’s pricing. The corporate bond funds focus on the selection of companies, but the sector, regional and thematic analyses are also key components of the strategy. All our fixed-income funds possess a clear sustainability profile and our fixed-income fund management is the largest in the Nordic region in terms of investments in green bonds.
Fundfacts & Fees
The Disclosure Regulation means that new requirements will be imposed on the disclosure of sustainability-related information. The purpose of the Regulation is to (1) harmonize requirements for sustainability-related information within the EU 2) increase transparency and clarity regarding sustainability-related information 3) increase the attractiveness of sustainable investments.
The fund´s sustainability work
Transparency regarding the integration of sustainability risks, the promotion of environmental or social characteristics, and sustainable investments.
The fund promotes, among other characteristics, environmental or social characteristics
How are sustainability risks integrated into the investment-decision process?
The fund applies three overall approaches to sustainability risk management and to integrating these risks into investment-decision processes – inclusion, exclusion and engagement.
A structured process is carried out to identify the fund’s material sustainability risks. The fund factors the risks into every investment decisions and continuously throughout the bond’s holding period. In addition to Swedbank Robur’s fundamental process of identifying the companies with high sustainability risks that are excluded from the investment universe of all funds, the fund uses internal and external analysis and data to identify and continuously control sustainability risks in the fund’s holdings.
The fund managers engage with companies through dialogue and investments to encourage a stronger environmental, social and corporate governance (ESG) commitment. One such strategy is to prioritise investments in sustainability bonds.
The risk assessment for each company includes, for example, specific climate-related risks, how the companies’ business models have been positioned for a sustainability transformation, and social and governance-related risks. Should specific problems or uncertainties of a more serious nature be identified, a deeper analysis is carried out together with internal ESG specialists.
How could sustainability risks affect the financial return of the fund should they materialise?
Sustainability risks could affect the financial return of the fund if they materialise at several different levels. Weak governance and control structures may, for example, lead to irregularities that could have an adverse impact on the value of the bond. Material exposures to both transition and physical risks of climate change may pose a vulnerability should the risks materialise and lower the value of the fund’s underlying assets. The integration of sustainability risks into investment-decision processes is critical to achieving high and sustainable long-term returns.
Environmental, social and corporate governance (ESG) characteristics that are promoted by the fund’s management, or included in the fund’s objective
Practice for good governance
Other sustainable related characteristics
What environmental or social characteristics are promoted by the product?
The fund promotes environmental and social characteristics by including holdings based on the ESG factors described below and by excluding investments in the activities described below. In addition, the fund engages with the companies in which it invests.
Sustainability focused on the environment and climate change is integrated into the fund’s selection process. The fund prioritises investments that are moving the climate transition in the right direction and aligned with achievement of the Paris Climate Agreement goals. A major focus is placed on investments in sustainable bonds, and in particular bonds linked to the environment, since these are clearly and transparently financing the transition to a more sustainable society.
The fund is actively involved in engagement, with a particular focus on climate transition. The fund engages in dialogue with the companies and demands greater transparency regarding their ESG approaches, with a particular focus on climate-related risks.
The fund excludes holdings with high sustainability risk scores and that provide products and services the fund management company considers harmful to society and the environment, according to the information below under “The fund excludes.”
How the fund intends to promote environmental and social characteristics is described under “Methods used to integrate sustainability risks, promote environmental or social characteristics, or achieve a sustainable investment objective.”
The fund uses the following index as a reference benchmark
No index has been chosen as a reference benchmark
The financial return of the fund is compared with the chosen market index. The chosen index does not fully reflect the environmental and social characteristics promoted by the fund and is therefore not used as a reference benchmark for assessing the fund’s environmental and social characteristics.
Methods used to integrate sustainability risks, promote environmental or social characteristics, or achieve a sustainable investment objective
The fund selects
What investment strategy does the fund follow to promote its environmental or social characteristics?
The fund’s investment strategy is based on prioritising investments that are moving the climate transition in the right direction and strives to include companies that are accelerating the renewable energy transition. The fund’s aim is that invested capital will help to achieve the UN Sustainable Development Goals (SDGs), with a particular focus on the climate and achieving the Paris Climate Agreement goals. The selection process is based on choosing companies with business models that are sustainable and therefore relevant for the future, combined with a sustainable capital structure. The fund managers engage actively with companies through dialogue to encourage them to reduce their carbon footprint.
A key feature of the fund’s investment strategy is investments in sustainable bonds, since these are clearly and transparently financing the transition to a more sustainable society. The bonds are assessed on the basis of what they have been issued to finance, with an emphasis on climate-positive aspects. The fund prioritises investments in green and social bonds.
The fund excludes
The fund does not invest in companies involved in the following products and services. A maximum of five per cent of the turnover of the company in which the placement takes place may relate to activities relating to the specified product or service.
Products and services
Under this heading, a fund which does not take sustainability aspects into account may also indicate which products and services are not included in the fund as a result of the fund's investment policy.
Cluster bombs, anti-personnel mines
Chemical and biological weapons
Weapons and/or armaments
Tobacco & Cannabis
Fund company comments: The fund also refrains from making investments in companies whose turnover exceeds 5% from cannabis.
Commercial gambling activities
Fossil fuels (oil, gas, coal)
Fund company comments: The fund excludes companies with mining or refining activities linked to fossil fuels (coal, oil and gas) or transport from coal and oil. The fund takes a restrictive approach to the transport of gas and services associated with fossil fuels. The fund also takes a restrictive approach with regard to companies involved in power generation or network operations that make use of fossil fuels. Read more about our definitions, criteria and the possibility to invest in conversion companies in Swedbank Robur's Strategy to opt out.
The fund does not invest in companies that violate international standards. The assessment is made either by the fund manager itself or by a subcontractor.
Fund company comments: The fund invests in interest-rate transferable securities issued by companies which respect the principles in international norms for human rights and the environment. Companies shall engage in environmental and sustainability work relevant to their sector and work with their environment-related risks and opportunities.
The fund does not invest in companies that do not take steps to address identified problems or where the fund considers that the companies will not address the problems for a period that the Fund Manager deems reasonable in the individual case.This option concerns funds that develop an action plan for contested companies, which are excluded if specified conditions are not met during the prescribed period of time.
Internationella normer avser internationella konventioner, lagar och överenskommelser såsom FN Global Compact och OECD:s riktlinjer för multinationella företag som rör frågor om miljö, mänskliga rättigheter, arbetsvillkor och affärsetik
For sustainability reasons, the fund does not invest in companies involved in certain countries/debt securities issued by certain states
Fund company comments: The above is applicable for interest-bearing transferable securities issued by companies, but does not apply for investments in index derivatives or exchange-traded funds (ETFs).
The fund company influences
Corporate Influence in-house
Fund company comments: In total, we have ten internal specialists in sustainability and owner governance. The specialists conduct an ongoing dialogue with different companies and/or issuers to influence them to be more sustainable and to move them in a positive direction. The fund managers are also involved in the advocacy work.
Corporate influence in cooperation with other investors
Corporate influence through external suppliers/consultants
Fund company comments: Influence is conducted through two external suppliers: ISSEthix and Sustainalytics Engagement Service.
Votes at general meetings
Participates in nomination committees to influence the composition of the Board of Directors
Other corporate influence
The Fund Management Company uses its ownership power to influence companies in sustainability matters.
The Fund Management Company is in contact with companies in order to influence them in a more sustainable direction.
Information on the methodology used to assess, measure and monitor the environmental or social characteristics of the overall sustainable impact of the financial product
The fund has a documented investment and environmental, social and corporate governance (ESG) approach, which the fund’s managers follow when making investment decisions. The fund’s holdings are screened using data from several providers. This ensures that the fund complies with the pre-defined criteria for excluding holdings. The data may also be used to assess the holdings included in the fund. Every day, the risk department determines whether the fund is in line with the exclusion criteria. The fund’s sustainability parameters, such as the fund’s carbon footprint, are measured on a regular basis if such measurement is possible given the fund’s investment universe and access to underlying data.