Simplicity Palma is an actively managed mixed fund that mainly invests in transferable securities, money market instruments and other funds. The allocation of the fund’s holdings, such as geographical exposure and distribution between equities and fixed income instruments, is determined by the fund company based on the prevailing market conditions. Depending on the market situation, the fund’s exposure to any of the permitted asset classes can be up to 100 percent. The risk in the fund can thus vary between low and high.

The Fund aims to achieve as high a risk-adjusted return as possible over time, with a risk that is lower than the risk in the stock market as a whole and higher than the risk in the fixed income market as a whole.

Risk management is a central part of Simplicity’s management process and it is therefore important that sustainability risks are taken into account and monitored just like other types of risks. Simplicity Palma is a fund that promotes, among other things, environmental and social characteristics. The fund does not invest in companies that produce or distribute weapons, alcohol, tobacco, commercial gambling, pornography and fossil fuels. The fund also does not invest in companies that systematically violate international norms.

To measure and follow up the environmental and social characteristics, Simplicity has access to a number of different methods, services and data sources. The fund has documented investment and sustainability processes that the manager follows. The managers have access to a variety of data sources, including Bloomberg and Sustainalytics. The fund’s holdings are regularly screened using Sustainalytics. The person responsible for Simplicity’s risk function examines, independently of the managers, that the fund complies with set criteria.

Read more about the fund’s sustainability work in the fund’s information brochure and on our page for responsible investments.

Fund facts

  • 2018.09.21
  • 0,90 %
  • 50 000 SEK
  • 0,40 %
  • 50 000 000 SEK

Risk information

  • 0
  • En medellåg riskklass (3)
  • 7,85%
  • 0,63

Sustainability-related information

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.

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

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.

Copyright Simplicity AB 2023