Norwegian manager Storebrand Asset Management has confirmed the addition of the SPP Europe Plus fund to its Plus range of fossil-free index tracking equity portfolios.
Others in the range include Emerging Market Plus, Global Plus and Sweden Plus. The management process integrates sustainability variables. They do not invest in companies that extract or distribute fossil fuels or in companies with large fossil reserves. They avoid companies with high carbon footprints, and invest more in those with low carbon footprints. They are partly dedicated to investing in renewable energy and companies positioned to benefit from providing sustainable solutions.
Jan Erik Saugestad, CEO Storebrand Asset Management, said: “Fossil-free strategies are a powerful tool, helping us shift billions away from investments with a more challenging future. The increasing interest in fossil-free funds responds to the growing public concern over climate change, and this is our contribution to the growing global divestment movement. By adding a ‘Europe’ fund to our range of fossil- free portfolios the category becomes more complete.”
“Our low carbon and fossil-free funds have gained a lot of attention and inflow, as customers are raising their climate ambitions. Investors increasingly recognize global issues, such as climate change, as a financial risk but also as investment opportunities. In the past few years, institutional ESG policies are also rising in sophistication and levels of ambition. By adding a ‘Europe’ fund to our range of fossil-free portfolios, we provide investors with yet another sustainable building block.”
Other funds in the Storebrand group range include SPP and Storebrand Global Solutions, SPP Aktiefond Stabil, SPP Företagsobligation, SPP Obligationsfond, SPP Penningmarknadfond, GodFond Sverige Världen, Storebrand Global Kredit IG and Storebrand Norge Fossilfritt.
The total net asset value across the group of the fossil-free funds was estimated at €6.1bn as at the end of 2017. SPP funds is part of Storebrand Asset Management. The Storebrand group also includes Delphi Funds and Skagen, the independent manager that was acquired in 2017.