Sweden has a rich history of innovation and entrepreneurship.
Our small country, tucked away in northern Europe, has throughout the years nurtured a multitude of internationally recognized companies. The common denominator for all these companies is that they once started their journeys as small companies. Via Simplicity Småbolag Sverige we want to offer investors an opportunity to invest in the next Swedish success story. The fund is suitable for those who believe in Swedish innovation and entrepreneurship. Many smaller Swedish companies today are so called “born globals”, which means that they early on have an international presence, combined with tehnological advancements and cross border co-operation. Small cap companies have a higher expected return compared to large cap companies, but are often times harder to analyze and are more volatile than large cap companies, given a larger part of their market cap is attributable to future growth and expectations. Simplicity Småbolag Sverige is a good alternative for investors seeking higher returns whilst at the same time accept the increased risk compared to a standard Swedish equity fund.
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. Simplicity Småbolag Sverige is a fund that promotes environmental and social characteristics. The fund does not invest in companies that produce or distribute weapons, alcohol, tobacco, gambling, pornography, and fossil fuels. 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.
Read more about the fund’s sustainable investments in the fund’s prospectus and on our page for responsible investments.
- 100 SEK
- 14:00 CET
- High (6)
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
- -4.46 %
- -13.59 %
- 26.34 %
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.
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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.