Sustainability standards implemented for funds in Sweden
The Swedish Investment Fund Association has pushed for greater transparency around sustainability standards being followed by its members, in order to set a consistent standard for the industry to follow in the Swedish fund market.
Currently, some 29 out of the Association’s 43 member companies have directly or through their group structures signed up to the UN PRI (principles for responsible investing). This means that more than 90% of the assets represented by the Assocation are being managed according to PRI.
By highlighting sustainability issues, the Association hopes to increase investor awareness of member companies’ work in this area.
“There is a lot of interest in sustainability issues among investors, and we want to make it easier for them to find information about the work done by fund companies and increase the ability to compare. The Association sees it as a natural part of of its work to take an active role and act for increased transparency through self-regulation on a question that engages both investors and fund companies,” said Fredrik Nordström (pictured), CEO for the Association
Implementing this target will be a requirement for fund companies to provide an annually updated A4 size sheet containing information about relevant sustainability activities. For bigger fund companies it is expected that this information will be seen as a complement, while for smaller companies it will set a minimum standard for information about their work. The document must be easily accessible on the fund company’s website, accordig to the new standards requirements.
The Association said that the requirement would be implemented starting this year, coming into full effect by 2017, and have been written into the Association’s guidelines, which are intended to provide a steer to member companies to achieve good practice when approaching the Swedish fund market.