Swedbank Robur Corporate Bond Nordic High Yield C

Summary

This financial product promotes environmental or social characteristics, but does not have a sustainable investment objective. However, the fund will have a minimum share of sustainable investments.

The fund analyses how the sustainable investments affect such things as emissions, water and biodiversity on an ongoing basis. The fund also ensures that the holdings do not seriously and systematically infringe on accepted international standards and conventions relating to sustainability as adopted by the UN, ILO and OECD or are otherwise involved in unacceptable operations relating to sustainability or corporate governance.

External suppliers will provide Swedbank Robur with an analysis of which companies can be associated with violations of international norms. Based on information from our suppliers and other available information, Swedbank Robur will make its own assessment on whether it is a question of a serious and systematic violation. If such a violation is deemed to occur, the company's securities are not a sustainable investment.

The fund promotes sustainable bonds, bonds issued by companies classified as sustainable investments, an environmentally more sustainable approach by the activities of issuers through Environmental Engagement (E) and an increased social responsibility on the part of issuers through Social Engagement (S).

Sustainability and climate work constitute an integrated part of the investment strategy in order to manage sustainability and climate risks and to promote environmental and social characteristics. The fund is obligated to follow the Management Company’s "Policy for Responsible Investments" (adopted by the Board) and uses three overarching methods ("include", "exclude" and "engage") in order to achieve the environmental and social characteristics promoted by the fund. The fund follows the Management Company’s "Principles for Shareholder Engagement" (adopted by the Board). As an active owner, the aim of Swedbank Robur is that the companies we invest in are managed in an efficient and long-term sustainable manner.

There are plans for at least 70% of the fund's assets to consist of investments aligned with environmental or social characteristics, of which at least 7% will be sustainable investments.

The Management Company’s risk function monitors and checks that the environmental or social characteristics promoted by the fund are being complied with. The risk function also performs quarterly follow-ups and analyses of the metrics the Management Company has selected to measure how the fund’s investments promote environmental or social characteristics.

In order to measure the attainment of the environmental and social characteristics that the fund promotes, the sustainability indicators sustainable bonds, share of bonds in sustainable companies, Environmental Engagement (E) and Social Engagement (S) are used.

Swedbank Robur uses several sources in its process to measure how funds promote environmental or social characteristics. Swedbank Robur purchases data from major data providers that have demonstrated a robust method for ensuring the quality of data. To ensure the quality of the data purchased, the provider’s data and product range are reviewed. Where possible, test data is obtained from several providers offering the same product in order to compare as wide a range as possible.

There are a number of limitations with the models and data currently in use. The main limitation is the number of asset types for which metric calculation methods exist. The coverage is generally good for the funds, where a mix between reported and estimated data is used. Furthermore, Swedbank Robur believes that the method used by data providers for estimating data is reliable.

The Management Company has due diligence procedures in place in order to ensure that sustainability risks and the sustainability requirements established for the fund are taken into consideration in the investment decision. Sustainability analysis is an integrated part of the fund management’s investment process. In order to manage sustainability risks and integrate the risks in investment decisions, the fund management follows the procedures that the Management Company describes in the Management Company’s "Strategy to include" and "Strategy to exclude". The Management Company’s risk function performs a daily inspection to determine whether the fund’s holdings fulfil its sustainability requirements and regulations regarding exclusion.

The fund follows the Management Company's "Principles for Shareholder Engagement" (adopted by the Board). In the event of sustainability-related controversies in invested companies, Swedbank Robur has special procedures and processes to monitor and follow up with the company. Both dialogue work and voting are key tools to try to prevent and respond to sustainability-related controversies.

Principal Adverse Impact Statement (in Swedish).