Sustainability information
The following information is provided in order to meet the requirements stated in regulation (EU) 2019/2088 of the European Parliament and of the Council on sustainability-related disclosures in the financial services sector (“SFDR”).
It should be noted that Lysa Fonder manages a large number of funds. Of these funds, only those included in the sustainable focus promote environmental and social characteristics (so-called art 8 funds) or aim to reduce carbon emissions (so-called art 9 funds). Other funds are part of Lysa AB's broad focus and, as a general rule, do not apply any screening or other types of specific sustainability requirements. For the disclosure of sustainability-related information for the respective funds, please see "our funds".
The funds that promote environmental and social characteristics are only marketed in Sweden.
Integration of sustainability risks in the investment decision-making process
As part of the decision-making process, various types of risks and their potential impact on the value of the investment are considered. One of the risks that is evaluated is sustainability risks. A sustainability risk is an environmental, social, or governance-related event or circumstance that, if it were to occur, could have an actual or potential impact on the value of the investment.
Lysa Fonder evaluates sustainability risks in the same way as other identified risks when making investment decisions.
When making investment decisions regarding any of the funds in the Broad Funds category, sustainability risks are considered and valued in the same way as other identified risks. The reason for this is that the funds in this category aim to provide as broad exposure as possible in order to minimize the impact of an identified risk occurring. If particular consideration is given to sustainability risks, the diversification is reduced, which goes against the purpose of the Broad Funds. The potential return could, as a result, be both higher and lower over time.
When it comes to investment decisions made for any of the funds Lysa Sweden Equity Focus, Lysa Global Equity Focus and Lysa SEK Fixed Income Focus (Lysa's fund range with a sustainable focus), the fund company has chosen to consider sustainability risks in particular by ensuring that the managed funds, directly or indirectly, exclude companies that operate in industries, or provide products or services, where sustainability risks are generally considered to be high, such as the arms industry, the production and distribution of alcohol, tobacco and commercial gambling, pornography and the extraction of fossil fuels (oil, coal, gas). The funds must also exclude companies that violate international standards on human rights, labour conditions and business ethics.
The fund company also manages funds that follow the Paris Aligned Benchmark. In these funds, sustainability risks are also taken into account by selecting and weighting the companies in the index in such a way that the index portfolio's greenhouse gas emissions are adapted to the long-term global warming targets of the Paris Agreement.
Through the choices and exclusions made within the framework of the investment decision process for this category of funds, sustainability risks are considered to decrease. This means that diversification is reduced due to differences in holdings compared to a broader investment that includes exposure to, for example, emerging markets and, consequently, the realized return on the fund may be both lower or higher over time.
- Please note that the funds Lysa Sweden Equity Focus, Lysa Global Equity Focus, and Lysa SEK Fixed Income Focus are not marketed outside of Sweden.
Lysa Fonder’s remuneration policy and its consistency with the integration of sustainability risks
As Lysa Fonder only pays remuneration that is based on predetermined criteria that is not related to, and does not encourage, any risk taking, Lysa’s remuneration policy is deemed consistent with the integration of sustainability risks in the decision-making process.
No consideration of adverse impacts of investment decisions on sustainability factors
Lysa Fonder does currently not consider principal adverse impacts of investment decisions on sustainability factors at entity level. The reason for this is that Lysa Fonder offers a range of funds which all have their own separate sustainability policy. The funds Lysa Sweden Equity Focus, Lysa Global Equity Focus and Lysa SEK Fixed Income Focus are taking principal adverse sustainability impacts into consideration at product level, but the other funds are currently not. More information is available in each fund’s prospectus.
As both the regulations and Lysa Fonder’s business are continuously developing, Lysa Fonder might reconsider this position in the future.
Fund's Specific Characteristics
For information on how sustainability is considered in each fund, please see the information provided on the "our funds" page.