SEB Global Sustainable Companies Fund in brief
- The fund can be traded in SEB's app, the internet bank, and other major trading platforms.
- Risk level: 4 out of 7.
- The fund is open for savings in ISK, fund accounts, and insurance.
SEB Global Sustainable Companies Fund
Invest for yourself, the climate and a sustainable future.
Investments involve risk. Past performance is not indicative of future results. The value of fund units/shares can rise as well as fall and you may not get back the amount invested. Fund information, including the KID, information brochure, and sustainability-related disclosures can be found at www.sebgroup.lu/funds.
The SEB Global Sustainable Companies Fund is a global exposure equity fund with sustainable investments as its objective.
The fund aims to invest in developed markets worldwide, targeting companies that contribute to an environmentally and socially sustainable future and to generate a return and risk profile in line with its benchmark. The fund invests in companies that already focus on sustainability issues today can lead the way in a future that demands more sustainable solutions, either by adapting their business models or by finding new business opportunities that may be important in the future.
About SEB Global Sustainable Companies Fund
Article 9 fund with sustainability as its objective
The fund invests in developed markets worldwide, targeting companies that contribute to the fund's sustainable investment goals. It invests in companies that the management company has classified as sustainable investments according to (SFDR) and that contribute to the UN Sustainable Development Goals or are aligned with the EU Taxonomy.
Optimised investment decisions
The investment decisions are based on an optimised model, incorporating specific parameters that drive these decisions. The foundation is derived from the proprietary model SIMS-S, which analyses sustainability data from all over the world.
Index-exposure management
The fund is an exposure fund aiming to generate a return and risk profile in line with MSCI World Net Return Index, a reinvesting stock index consisting of large and medium-sized companies in developed markets.
Key figures
<3%
Tracking error*
~500
Number of companies in the portfolio
4 of 7
Risk class is considered medium risk
The figures are based on fund data as of
21/08/2024
Sustainability in numbers
90%
Minimum share of investments**
9.9%
Taxonomy alignment***
1–14
Principal adverse impacts considered by the fund****
The figures are based on fund data as of
21/08/2024
* Tracking error is a risk measure indicating how much a fund's return deviates from its benchmark index. Read more about the fund's active risk in the Q&A section.
** Other exposure includes cash and derivatives.
*** Taxonomy alignment is a term used in sustainable investments and describes how well a company's economic activities align with specific criteria. The fund's Taxonomy alignment is 9.9 per cent, which is 40 per cent higher than the MSCI World Index as the market currently stands. Source: ISS 21/08/2024
**** The fund considers principal adverse impacts by excluding investments in certain companies or sectors. The fund considers principal adverse impacts 1-14 and two additional voluntary adverse impacts through exclusions and the management company's sustainability model, SIMS-S. Read more about these in the Q&A section.
Sustainable Development Goals (SDGs) that the fund mainly contributes to:
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5. Gender equality |
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7. Affordable and clean energy |
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10. Reduced inequalities |
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12. Responsible consumption and production |
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13. Climate action Take urgent action to combat climate change and its impacts. |
Questions and answers: SEB Global Sustainable Companies Fund
An Article 9 fund, as defined by the EU SFDR regulation, is a fund whose investments have sustainability as their objective. In addition, Article 9 funds, also known as “dark green funds”, are subject to stricter transparency and reporting requirements to ensure that their sustainability goals are met. This makes the funds important tools for investors seeking to contribute to sustainable development.
Article 8 funds, also known as "light green funds”, promote sustainability in their investments but do not have sustainability as their primary objective. Article 9 funds go a step further by explicitly focusing on achieving various sustainability goals.
While many sustainable global funds on the market today focus on specific themes such as renewable energy, gender equality, clean water, the SEB Global Sustainable Companies Fund provides you as an investor with a broad exposure to developed markets worldwide, considering both environmental and social sustainability. The fund does not invest in emerging markets.
SEB Global Sustainable Companies also aims to reflect its benchmark index in terms of performance and risk profile. However, it deviates from the index when it comes to the selection of investments and the number of holdings in the portfolio, which is due to the fund's inclusion and exclusion criteria based on sustainability.
The fund uses a model based on different parameters and rules to drive investment decisions. Companies are selected based on mathematical models and statistical relationships to generate the return and risk profile in line with the fund's benchmark index.
Article 9 funds consist of sustainable investments, which are investments contributing to an environmental or social sustainability goal. These investments must not cause significant harm to any other environmental or social sustainability objectives, and the companies must demonstrate good corporate governance.
SEB Investment Management AB has developed its own analysis model, SIMS-S, which utilises various external and internal data sources to provide a sustainability rating for each potential investment. The rating considers factors such as risks, negative consequences, opportunities, alignment with global sustainability goals, carbon footprint, and more.
This sustainability analysis focuses on specific sector risks, the sustainability of products and services, and the long-term impact on sustainable value creation. The aim of SIMS-S is to provide a relevant, material, and forward-looking rating for each company.
Watch the video "SEB's fund company's sustainability score model"
The investment decisions are based on an optimised model, incorporating selected parameters that drive the investment decisions to generate the risk and return profile of the benchmark index. The investable universe consists of approximately 1,300 sustainable companies. By investing in approximately 300–700 of these, the fund can replicate the index’s distribution across countries, regions, and sectors while adhering to a rule-based approach.
The fund considers the principal adverse impacts by excluding investments in specific companies or sectors. By excluding investments in companies that exhibit these negative impacts, the fund strives to minimise its negative impact on the environment and society.
The fund considers the following negative impacts 1-14 along with two voluntary negative impacts through exclusions and the SIMS-S sustainability model,:
- Greenhouse gas emissions.
- Carbon footprint.
- GHG intensity of investee companies.
- Exposure to companies active in the fossil fuel sector.
- Share of non-renewable energy consumption and production.
- Energy consumption intensity per high-impact climate sector.
- Activities negatively affecting biodiversity-sensitive areas.
- Emissions to water.
- Hazardous waste and radioactive waste ratio.
- Violations of UN Global Compact principles and Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises.
- Lack of processes and compliance mechanisms to monitor compliance with UN Global Compact principles and OECD Guidelines for Multinational Enterprises.
- Unadjusted gender pay gap.
- Board gender diversity.
- Exposure to controversial weapons (e.g. anti-personnel mines, cluster munitions, chemical weapons and biological weapons).
Voluntary: Investments in companies without carbon emission reduction initiatives.
Voluntary: Lack of a supplier code of conduct.
When deciding whether to invest in the fund, consider not only its sustainability-related characteristics but also all other characteristics described in the information brochure.
Tracking error is a measure of how much a fund's return deviates from its benchmark index. This fund is expected to have a tracking error of less than 3 per cent (<3%), which means that:
- It closely follows its benchmark index.
- There is only a minor difference between the fund's return and the expected return of its benchmark index's.
- Summary: SEB Global Sustainable Companies Fund (pdf)
- Information brochure: SEB Global Sustainable Companies Fund (pdf)
- A: SEB Global Sustainable Companies Fund (in Swedish) (pdf)
- B: SEB Global Sustainable Companies Fund (in Swedish) (pdf)
- C: SEB Global Sustainable Companies Fund (in Swedish) (pdf)
- D: SEB Global Sustainable Companies Fund (in Swedish) (pdf)
- E: SEB Global Sustainable Companies Fund (in Swedish) (pdf)
- F: SEB Global Sustainable Companies Fund (in Swedish) (pdf)
- G: SEB Global Sustainable Companies Fund (in Swedish) (pdf)