Swedish firm turns high yield fund into ESG fund

Stockholm-headquarted SEB announced that the SEB High Yield fund will include ESG criteria screening in its investment policy.

Effective as from 12 December 2017, the fund, that will be renamed as the SEB Sustainable High Yield fund to better reflect the new strategy, will seek to generate long-term growth while considering specific sustainability criteria. It was hitherto aimed to generate total return.

In addition to SEB’s basic sustainability principles, the fund will employ both negative and positive screening.

The fund will invest in companies whose practices enable it to maintain a high average ESG score in the portfolio and will avoid companies with the lowest ESG scores.

SEB’s view on negative screening means the fund will not invest in companies that:

  • produce or sell controversial weapons or which breach international conventions regarding weapons such as cluster bombs, landmines, chemical and biological weapons;
  • participate in the development of nuclear weapon programmes or produce nuclear weapons;
  • have breached international norms regarding labour legislation, anti-corruption, the environment or human rights;
  • have more than five percent of their turnover derived from the production of alcoholic bever-ages, tobacco, the production and/or active distribution of pornography, the production and/or sales of weapons or from commercial gambling
  • are involved in coal, gas, and/or oil exploration and extraction.
ABOUT THE AUTHOR
Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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