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 ("focus") promote environmental and social characteristics (so-called Article 8 funds). Other funds are part of Lysa AB's broad orientation and, as a general rule, do not apply any screening or other types of specific sustainability requirements. The funds that promote environmental and social characteristics are marketed only 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.
In the case of 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 sustainability focus), the fund company has chosen to take into account sustainability risks in particular by only investing in funds that promote environmental and/or social characteristics (so-called "Article 8 funds" according to the European Parliament and Council Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector). Furthermore, the Fund Company only invests in funds that exclude companies operating in industries, or providing products or services, where sustainability risks are generally considered to be high, such as the weapons industry, production and distribution of alcohol, tobacco and commercial gambling, pornography, and fossil fuels (oil, coal, gas). The funds should also exclude companies that violate international norms related to human rights, working conditions, and business ethics.
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.
The promotion of environmental and social characteristics
Lysa Fonder's Sustainable Funds are so-called feeder funds that only invest in the recipient funds Öhman Market Sweden, Öhman Market Global, and Öhman Bond Fund Compass ("Öhman's Funds"). Since Öhman's Funds promote environmental and social characteristics in the ways described below, Lysa Fonder's Sustainable Funds are also considered to promote these characteristics.
Öhman's Funds only invest in companies that follow good corporate governance practices and both environmental and social characteristics are promoted in the management by, among other things, Öhman's Funds choosing to exclude companies involved in certain types of products and services (e.g., weapons, drugs, commercial gambling and fossil fuels), as well as companies that violate international norms related to environmental issues, human rights, working conditions, and business ethics. Furthermore, Öhman's Funds include companies that its fund company, Öhman Fonder AB, identifies as a long-term sustainable investment based on a sustainability analysis. For more information about Öhman's Funds and Öhman Fonder AB's sustainability work, see www.ohman.se/fonder/fondlista and www.ohman.se/hallbarhet.
To ensure that the promotion of environmental and social characteristics is done in a satisfactory manner, Lysa Fonder will continuously follow up and evaluate the sustainability work done by Öhman's Funds and Öhman Fonder AB.
- Please note that these funds are not marketed outside of Sweden.
Fund's Specific Characteristics
For information on how sustainability is considered in each fund, please see the information provided on the "our funds" page.