Simplicity Fastigheter invests in listed companies that own, manage, and build various types of real estate in the Nordic market. The real estate companies are characterized by high quality, long-term perspective, and investments in various types of tangible assets that provide a business that offers predictable, stable and good earnings over time.
Simplicity Fastigheter is jointly managed by our equity and fixed income teams, where you as a unit holder get access to the fixed income management’s fundamental analysis and the managers’ long experience of investing in real estate companies. This is supplemented by the equity team’s data-driven analysis, which among other things captures the companies and stocks that perform best in relation to the risk we want.
The investment teams starting point is a broad exposure via the reputable Swedish real estate companies that we have known well for a long time, supplemented by the leading real estate companies in Norway, Denmark, and Finland. The goal is risk diversification between the various real estate segments, which means a portfolio consisting of a mix of different types of real estate such as residential and offices as well as warehouse, industrial, logistics and community properties. The fund is actively managed, which means that the allocation between the different companies will vary based on the market situation and the companies’ performance.
All real estate companies are carefully assessed based on their sustainability work, and the assessment is an important part of the selection process of companies for the portfolio. To measure and monitor the environmental and social impact, Simplicity has access to several different methods, services, and data sources. The fund has documented investment and sustainability processes that the managers follow. The managers have access to several different data sources, including Bloomberg and MSCI. The fund’s holdings are regularly screened with the help of MSCI. The person responsible for Simplicity’s risk function audits, independently of the managers, that the fund complies with established criteria.
- 100 SEK
- High (7)
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 fund's value can fluctuate significantly due to its composition and fund management methods used by the Fund Management Company.
Performance of the fund
Holdings and distribution
10 largest holdings
The holdings in Simplicity’s funds must, as a minimum, comply with laws, international norms, and conventions such as the UN Global Compact, UN Guiding Principles on Business and Human Rights and OECD Guidelines for Multinational Enterprises. All holdings are screened on a regular basis to check that no violations have occurred. The norm-based screening is carried out by a third party. The screening serves as a base to assess good governance practices for the fund’s holdings.
If a company in which any of Simplicity’s funds has invested has breached any international norms and conventions our fund managers are obliged to initiate dialogues with the company. The actions taken next are based on the results from the dialogue with the company, which could include to sell the holding. Simplicity does not invest in companies that systematically violates international norms and conventions, without showing any progress or will to improve.
Sustainability indicators are used to measure the attainment of each of the environmental or social characteristics promoted by the fund. All indicators are measured using quantitative data. The indicators are considered in investment decisions and are controlled regularly.
Qualitative and quantitative analysis and screening are used to attain each of the environmental or social characteristics promoted by this fund. The fund managers are regularly assessing data providers of sustainability data to ensure quality. Most data are not estimated. The fund company has concluded that eventual limitations in data or method do not affect the attainment of each of the environmental or social characteristics promoted by the fund.
The binding elements of the fund are to 1) make at least 20% sustainable investments and to promote environmental or social characteristics, 2) comply with Simplicity’s policy for exclusions and responsible investments and 3) exclude companies that systematically violates international norms and conventions, without showing any progress or will to improve. Due diligences are carried out regularly by internal controls.
The fund promotes environmental and social characteristics partly by excluding companies that are considered not to contribute to a sustainable development and partly by including companies that are considered to contribute positively to a sustainable development. Moreover, the fund makes sustainable investments.
The fund has committed a minimum proportion of sustainable investments representing 20% of the fund. According to the fund terms, the fund may have cash held as liquidity up to 10% of the fund. The fund may also use derivatives. All investments should promote environmental or social characteristics.
All sustainable investments are related to an environmental objective:
- The sustainable investments in companies aligned with the EU taxonomy contribute to the environmental objectives of the EU taxonomy (Climate change mitigation and Climate change adaptation).
- The sustainable investments in companies with climate targets in line with the Paris Agreement contribute to reduce emissions. (These investments also need to have a quantitative target for achieving at least one of the 17 UN SDGs and be a member of UN Global Compact.
- The sustainable investments in companies with products and services related to the green transition, for example renewable energy and energy smart technologies, contribute to UN Sustainability Development Goals (SDG) affordable and clean energy (SDG 7) and climate action (SDG 13).
The fund does not invest in the following sectors: weapons, alcohol, tobacco, gambling, pornography, fossil fuels and other companies within the GICS sector 10 classification. In addition, companies with large fossil reserves, companies with more than 25 % of their energy production based on fossil fuels and companies with other types of business that are the main owners of companies in any of the above-mentioned industries are also excluded.
The fund supports the green transition and corporate responsibility by promoting companies with climate targets and companies that are UN Global Compact members. The fund does also promote environmental and social characteristics as it considers principal adverse impacts on sustainability factors in investment decisions.