SWEDEN - The Kommunforbundens Pensionstiftelse has become the second Swedish institution since the start of the year to award Scottish Widows Investment Partnership (SWIP) a socially responsible investment (SRI) mandate.
The SEK700m (E77m) pension fund for the Swedish Regional Authorities will invest in SWIP’s pan-European SRI-fund, launched in May.
Ake Goransson, chief financial officer and head of asset management at the Stockholm-based fund, said that SWIP was chosen partly because its SRI approach and partly because of its “good historical track record.”
“As funds with these qualities have now been created, there is a true possibility for municipalities, city councils and publicly owned companies throughout the country to invest accordingly without onerous requirements on the size of the investment.
“The corresponding concept has earlier only been open to larger management that have been able to use discretionary mandates.”
SWIP’s fund uses the same model as AP7, Sweden’s seventh national pension fund, which in turn is based on several United Nations conventions. The SRI screening is conducted every six months and is carried out by another Swedish firm, CaringCompany Etikanalytikerna (CCE), who are also utilised by AP7.
The award comes on the back of another win earlier this year from the E22m Swedish Foundation for Strategic Research.
SWIP is propelling its SRI reach in the Nordic region. Only recently the firm launched a new follow-up fund, the SWIP Global SRI Equity Fund, due to demand from Swedish institutional investors, said the firm.
The SRI overlay for the new global fund is also shaped on the AP7 model and will again be screened by CCE.
SWIP has put its recent success down to an in-depth approach to company research and stock selection.
Both funds are distributed by Stockholm-based Intervalor.
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