The fund is an actively-managed mixed fund. The fund applies the following investment strategy to attain the environmental and social characteristics promoted by the fund:
Sustainability analysis: Sustainability analysis is an integral part of the portfolio management’s investment analysis in which each investment is carefully analyzed based on relevant issues. For example, how the fund manager conducts its business, how fund management works with sustainability issues and integrates them into its portfolio construction are evaluated throughout the fund selection process. Analyses are also conducted of the fund’s strategy and risks, social and environmental impact, as well as engagement dialogues, for example. This includes an analysis of the fund’s sustainable investments, the policy for good governance, and consideration of adverse impacts on sustainability factors. The analyses are based on information from the Management Company, external sources and through in-house analyses.
Dialogues and Asset Stewardship: Active engagement is an essential strategy to influence companies in a more sustainable direction. The Management Company and the fund manager manage this through company dialogues, corporate governance work and work within investor networks. Company dialogues are conducted directly between the fund manager and the company, together with other investors or within the scope of investor networks and other collaborations. The dialogues include a broad spectrum of sustainability issues. The Management Company conducts an active and responsible corporate governance through representation in nomination committees and voting at shareholders’ meetings. The starting point for our efforts is based on our Policy for shareholder engagement and responsible investment, as well as our guidelines for nomination committee work.
Within the scope of the fund’s investment strategy, the fund manager conducts a dialogue with external fund management companies to ensure that the underlying funds regularly meet the exclusion criteria imposed for the fund. The fund manager also evaluates the external management company’s work relating to dialogues and active corporate governance within the scope of the fund’s evaluation process. Active engagement and corporate governance work through dialogue, voting at shareholders’ meetings and representation in nomination committees are carried out within the scope of the underlying fund for investments in funds managed by Handelsbanken Fonder.
Exclusion strategy: The fund applies sustainability criteria in the form of an exclusion strategy. The strategy includes direct and indirect investments through funds in companies or issuers with production and distribution of controversial weapons, nuclear weapons, weapons and military equipment, alcohol, tobacco, cannabis, pornography, commercial gambling, fossil fuels, as well as companies with verified violations of international norms and conventions related to human rights, the environment, employee rights or anti-corruption and anti-bribery. The revenue limits applied by the Management Company with regard to production and services are stated in the table for exclusion that is shown in the Appendix for sustainability-related disclosures in the fund’s prospectus.
The fund has the option of including, directly and indirectly through funds, so-called transition companies involved in power generation, transmission and distribution of electricity and with some exposure to fossil fuels. Transition companies refer to companies or bonds or other interest-bearing instruments issued by companies that have been considered by the Management Company’s sustainability committee as those that are in the process of transitioning business operations in a manner that is expected to contribute to, rather than counteract, the attainment of one or several of the Sustainable Development Goals. The company’s rate of transition is assessed based on the following dimensions: that the companies’ activities do not consist primarily of fossil power generation, that the company’s current investment rate supports the transition from fossil fuels to renewable energy, as well as that the company’s forecasted business development of the activities is in line with a global warming of a maximum of 2°C. Read more about our requirements for transition companies in "Inclusion of companies in transition", which is published on our website at
www.handelsbankenfonder.se. The limits in the table referenced in the previous paragraph do not apply to so-called transition companies.
Pursuant to regulations, the fund may only invest in a company that meets practices for good governance. The Management Company ensures this through the application of the Exclusion and Inclusion strategies. By excluding investments both directly and indirectly through funds in companies with verified violations of international norms and conventions linked to, for example, taxes, employee rights, as well as anti-corruption and anti-bribery, the Management Company ensures that the fund’s investee companies comply with current practices related to good governance. An analysis is conducted for each investment decision in which sustainability dimensions as well as financial dimensions are factored into the decision. This analysis also includes issues related to the company’s or issuer’s governance, such as relationships with employees, remuneration, management and management structures, as well as compliance with tax regulations. The fund’s policy for assessing practices for good governance is controlled and evaluated for investments in other funds. Examples of relevant principles and guidelines include the Global Compact principles 1,3,6 and 10, OECD’s Guidelines for Multinational Enterprises as well as conventions such as the UN’s Convention against Corruption and ILO’s Convention 111, Discrimination in Respect of Employment and Occupation. Read more about the Management Company’s methodologies and principles for good governance in the document, "SFDR – Definitions and description of methodology within sustainability", which is available at
www.handelsbankenfonder.se.
The fund’s stated minimum proportion of sustainable investments and application of an exclusion strategy is a binding element for the Management Company in the management of the fund.