Avanza Fonder considers responsible conduct to be critical to a company’s long-term value creation. Acting responsibly includes properly managing sustainability-related risks and opportunities. Avanza Fonder’s objective is to be a responsible investor and support businesses and initiatives that make the world more sustainable. Avanza Fonder considers sustainability risks and the principal adverse sustainability impacts of the investment decisions of the managed funds. Being a responsible investor is usually done by the way of investment selection (i.e opting in/out of specific investments following a sustainability analysis) and influencing investee companies. Avanza Fonder has adopted an Instruction on Responsible Investment which details the method that is applied for each fund. Which method, or combination of methods, is employed depends on the fund’s investment policy.
Specific information on the methods and how each fund integrates sustainability risks and promotes environmental and social characteristics, can be found in the funds’ information memorandum and in the Instruction on Responsible Investment.
Avanza Fonder has signed the UN’s Principles for Responsible Investment (PRI). This means that Avanza Fonder has committed to follow the Principles and incorporate environmental, social and corporate governance issues into its investments. The PRI serves as guidance for Avanza Fonder’s commitment to sustainable investments.
Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
Principle 6: We will report on our activities and progress towards implementing the Principles.
For more information on PRI, visit http://www.unpri.org/.
Avanza Fonder also believes it is important that the Swedish fund industry demonstrates a consensus on sustainability and governance issues. As a member of the Swedish Investment Fund Association (FBF), Avanza Fonder is involved in FBF’s work on governance issues and promotes transparency on responsible investment.
Avanza Fonder has adopted an Ownership policy to manage its shareholder engagement in investee companies. The policy is applied by funds that directly invest in shares traded on a regulated market within and outside EES.
Avanza Fonder reports its activities with regards to shareholder engagement annually. The report includes amongst other a description of how Avanza Fonder has exercised its voting rights during the year. The report, which is only available in Swedish, can be found here.
The Board of Directors of Avanza Fonder has adopted a remuneration policy, which is group-wide for Avanza. The policy encourages high performance at the same time that it is designed to guard against moral hazard with respect to financial and sustainability risks, which are incompatible with the established risk profiles of the funds Avanza Fonder manages. This is done to prevent conflicts of interest and promote sound and effective risk management. The remuneration system is designed in conformity with Avanza Fonder’s goals, values and long-term interests. No variable remuneration is paid to the employees of Avanza Fonder.