Global Tema

If a company in which any of Simplicity’s funds has invested has breached any international norms and conventions, actions will be taken by the fund company. Actions may include initiating an engagement dialogue to understand the company’s perspective on the incident and what actions the company has taken to address the issue. The dialogue and other information collected by Simplicity form the basis for the actions taken, such as divesting holdings if the actions taken by the company are deemed insufficient. Simplicity does not invest in companies that systematically violates international norms and conventions, without showing any progress or will to improve.

The proportion of sustainable investments in the fund should be at least 90 %. The portion classified as “Not sustainable” is only cash held for liquidity management. Various sustainability indicators are used to measure the attainment of the fund’s sustainable investment objectives. Indicators are considered in investment decisions and regularly monitored.

The fund managers regularly evaluate the range of sustainability data providers to ensure data quality. Data are used to identify companies that are assessed to meet the fund’s sustainable investment goals. Data are also used to consider principal adverse impacts on sustainability factors to ensure that the sustainable investments do not cause significant harm to any other environmental or social investment objectives. Data is both based on reported and estimated data.

The fund company has concluded that eventual limitations in data or method do not affect the attainment of the sustainable investment objective, as the fund only invests in companies with existing reported or estimated data that proves fulfilment of the fund sustainability requirements.

The binding elements of the fund are to 1) only make sustainable investments, 2) adhere to Simplicity’s responsible investment policy, including the exclusion criteria as well as the inclusion, norm-based screening, and engagement strategies, and 3) adhere to the fund’s sustainability indicators. Due diligences are carried out regularly by internal controls.

The fund is actively managed, and no index has been designated as a benchmark to determine whether the fund is aligned to its sustainable investment objective.

Statement on principal adverse impacts of investment decisions on sustainability factors (PAI) – Simplicity AB.

Updated: 2025-05-16

This text contains sustainability-related information for Simplicity Global Tema, which is a dark green fund according to EU Sustainable Finance Disclosure Regulation (SFDR Article 9). This means that the fund has sustainable investments as its objective.

Simplicity Global Tema is a global equity fund that invests in companies that are assessed to contribute to a sustainable development. The fund’s financial objective is to achieve long-term positive value growth and a higher risk-adjusted return than its benchmark index. The fund is actively managed, which means that the profiles of the companies the fund invests in may vary over time based on the market situation and the performance of the stocks.

Sustainability is a central part of the investment process. The fund follows the company’s policy for responsible investments but has also certain fund specific sustainability criteria. All holdings in the fund are sustainable investments.

The fund invests in companies that are assessed to have environmentally sustainable economic activities in line with the EU taxonomy and in companies that are assessed to contribute to the UN Sustainable Development Goals (SDGs).

For a holding to be defined as a sustainable investment according to Article 2 (17) of SFDR, the fund’s established thresholds must be met. This means that at least 10 % of the company’s revenue must either 1) come from environmentally sustainable activities according to the EU taxonomy or 2) contribute to one or more of the SDGs.

As Simplicity Global Tema invests in companies that are assessed to have environmentally sustainable business according to the EU taxonomy and in companies contributing to the SDGs, the fund thereby contributes to fulfilling the taxonomy’s environmental goals or the SDGs. The fund does not invest in stocks that do not meet the fund’s requirements regarding the EU taxonomy or the SDGs.

The fund considers principal adverse impacts on sustainability factors to ensure that the sustainable investments do not cause significant harm to any other environmental or social investment objectives through two main methods: exclusion and norm-based screening. Norm-based screening and exclusion are carried out in accordance with Simplicity’s responsible investment policy.

The fund excludes investments in the following sectors: tobacco, cannabis, alcohol, pornography, gambling, weapons, fossil fuels, and GICS sector 10. Additionally, there are specific requirements for energy production based on fossil fuels and nuclear power. Norm-based exclusions are also applied to companies subject to applicable EU or UN sanctions. Thresholds are used to determine whether a company is related to any of the mentioned sectors or activities.

To manage sustainability risks, it is crucial that the companies Simplicity invests in through its funds conduct their business responsibly. The company uses norm-based screening to ensure compliance with good governance practices. Simplicity expects, at a minimum, that companies follow laws and international norms and conventions, such as the UN Global Compact, the UN Guiding Principles on Business and Human Rights, and the OECD Guidelines for Multinational Enterprises, as well as a certain level regarding other types of environmental, social, and governance-related incidents. All holdings in Simplicity’s funds are regularly screened to check for any violations. The norm-based screening is performed by a third party.