Simplicity Green Impact – a fund for you that seek high risk-adjusted return and who want to invest in companies that contribute with a sustainable development.
Sustainable companies have experienced substantial growth in recent years. The focus on climate change and environmental issues continue to increase, which presents several interesting investment opportunities and indicates further strong growth in the area. The green transition will be driven by rising demand for sustainable products and services, and by even more investors seeking to finance future solutions for global challenges. We believe that sustainable companies are building the future, and that the future winners are companies that are at the forefront in terms of climate change, environmental impact, and resource efficiency.
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’s sustainable development goals. Particular attention is placed on sustainable energy, consumption, and production, on combating climate change, climate adaptation, and preservation and utilization of our environment in a sustainable way. The goal is to invest in several different industries around the world, which provides increased diversification.
Investors in the fund get access to the fund managers’ long experience of equity investing. The sustainability analysis is supplemented with a structured and disciplined investment process to identify stocks that are expected to have a high risk-adjusted return. The goal of our investment strategy is to identify quality companies at attractive valuations with emphasis on risk analysis. Investment decisions are based on analysis of the underlying company performance as well as fundamental and qualitative factors. In accordance with our investment strategy, the investment decisions consider neither weight nor size of stocks in the index. The fund is actively managed, which means that the profiles of the companies in the fund may vary over time based on the market situation and the performance of the stocks.
Risk management is a central part of Simplicity’s management process, and it is therefore important that sustainability risks are considered and monitored just like other types of risks. Besides having sustainable investments as an objective, Simplicity Green Impact also promotes social characteristics and good governance. The fund does not invest in companies that produce or distribute weapons, alcohol, tobacco, gambling, pornography, fossil fuels, coal, uranium, and GMO. The fund also does not invest in companies that systematically violate international standards.
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
- 08:00 CET
- Moderate level (4)
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.
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.
Sustainable investment should be at least 90% of the fund. “Not sustainable” investments are only cash held for liquidity. According to the fund terms, the fund may have cash held as liquidity up to 10% of the fund. All sustainable investments are related to an environmental objective.
Sustainability indicators are used to measure the attainment of the sustainable investment objective of the fund. All indicators are measured using quantitative data. The indicators are considered in investment decisions and are controlled on a regular basis.
The fund managers are regularly assessing data providers of sustainability data to ensure quality. The data is used to identify companies that contribute to the sustainability objective of the fund, that is, 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 SDGs relating to climate and the environment. Data is also used when considering principal adverse impacts. Most data is estimated.
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.
This text includes sustainability-related disclosures for Simplicity Green Impact. The fund has sustainable investments as objective.
Simplicity Green Impact is a global equity fund investing in companies that contribute to a sustainable development. The goal is to have a higher risk-adjusted return than its benchmark. 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. 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) relating to the climate and the environment. The goals in focus are SDG 7 (affordable and clean energy), SDG 11 (sustainable cities and communities), SDG 12 (sustainable consumption and production), SDG 13 (climate action), SDG 14 (life below water) and SDG 15 (life on land).
As Simplicity Green Impact 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 SDGs relating to climate and the environment, the fund thus contributes to fulfilling to the environmental objectives of the EU taxonomy and the SDGs relating to climate and the environment. The fund does not invest in companies that neither fulfils the fund’s requirements in terms of the EU taxonomy nor the SDGs.
The fund considers principal adverse impacts on sustainability factors in investment decisions to control that the sustainable investments do not cause significant harm to any environmental or social sustainable investment objective. The indicators are measured and reported quarterly. Negative changes may lead to reducing or the exclusion of holdings. The indicators are considered based on data availability.
Norm-based screening and exclusions are made in line with Simplicity’s policy for responsible investments. Simplicity has identified several sectors which are ethically controversial or due to other reasons, as we see it, are deemed to have a negative contribution towards a sustainable society. Thus, Simplicity has chosen not to 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.