Swedish CB Asset Management's ethical approach results in a particular selection of funds, say portfolio managers Marcus Grimfors and Alexander Jansson.
What risk control skills do you seek out in managers?
MG: Ability to preserve investors’ money when markets collapse. We prefer stable growth and outperformance in bear markets rather than the ability to beat markets when everything goes up – high beta. We have found that successful managers in the long run usually have this ability, while many well-known managers fail, and even hedge funds often fail to hedge against market collapse.
What, in your view, will be the main difference in five years’ time in how the spectrum of HNWIs’ fund investments will look?
MG: If the stock market continues to struggle investments there may become less popular, and alternatives such as hedge funds may get some of the money now allocated to the stock market.
And will there be a large difference in structures the HNWIs use?
MG: If the fund regulations go too far, managed accounts may be preferred.
CB Asset Management: fact file
CB Asset Management – or CB Fonder as it is more commonly known in the local market – is a signatory to the UN Principles for Responsible Investment (UNPRI).
It does not invest in companies active in the production of tobacco or alcohol, weapons manufacturing, gambling and pornography.
These restrictions also apply to companies that supply services or products to these industries, where such activity accounts for 5% or more of reported revenues, according to most recent annual reports.
The approach applies to all of CBAM’s products including CB Hedge, European Quality Fund, and Save Earth Fund – the latter being a fund of environmental funds.
All funds are administered by either SEB or Caceis in Luxemburg.