26 Aug 2019 12:45

New fund invests in companies that solve global challenges

Do you think it is profitable to solve the world’s problems? If so, you are a part of the target group for Lyxor SEB Impact Fund, a new fund investing in companies that work with solving the global challenges of the future. The fund opened for institutional investors on April 25th and has so far attracted more than 100 million US dollars. SEB will soon open the fund for private investors.

We believe that companies focusing on solutions for a better future are well positioned to be profitable while making a positive impact,” says Sofia Wärmlöf Helmrich, who together with Mikael Nilsson, is responsible for the new fund.

Lyxor SEB Impact Fund invests in companies that operate in five areas related to the UN Sustainable Development Goals: sustainable energy, water availability, food and agriculture, resource efficiency and social improvement.

SEB is responsible for distribution and customer communication, and also for the selection process and portfolio construction, while Lyxor takes care of administration and the investment platform.

“We have analysed the global market and chosen five external investment managers specialising in ‘impact investments’, meaning investments capable of positively influencing social and environmental development,” says Mikael Nilsson.

Customer requests

SEB developed the fund in response to requests from institutional investors, who have asked for ways to make impact investments. One of those institutional investors is PRI Pensionsgaranti, a Swedish company that guarantees and administers book reserve method pension schemes, and an early investor in the new fund.

“Our mission is to secure a sustainable occupational pension system. Sustainable investments are therefore a natural focus for us in our asset management. We believe the fund meets our demands for long-term value creation,” says Leif Wasing, Chief Financial Officer at PRI.

SEB’s own life insurance company also invested in Lyxor SEB Impact Fund, and have acted as a sounding board during the development phase. SEB will soon offer the fund as part of its unit-linked pension plans offering.

“We conducted a survey among our customers and we clearly see a demand for investment possibilities in innovative companies that contribute to a sustainable future. The new fund meets the requirements in this area”, says Rebecka Elkert, responsible for sustainable investments in SEB’s life insurance unit.

SEB will continuously measure and provide investors with qualitative reports on the fund’s social and environmental impact, based on input from the external investment managers and from the bank’s own Metric Tool, which measures sustainability in equity portfolios.

Lyxor is an asset management company that is part of French bank Société Générale.