Responsible investment considerations are part of the request when Ovf search for new managers within our core asset classes – listed equity and fixed income.
Ovf intend to choose managers whose competence and capabilities include responsible investment practise and integrating factors for decent business conduct, environmental and social conditions, and who use instruments and tools to influence companies, managers and other players in the financial market. In manager and fund selection, Ovf have defined three ethical themes; (1) positively take into account investments that are considered as long-term sustainable, (2) exclude companies within weapon, companies contributing to pollution and companies having serious violations to central UN and ILO conventions and (3) seek to avoid investments in companies within alcohol, tobacco, gambling, corruption, controversial medical research, breach of ILO conventions, pornography, weapon systems and thermal coal.
The themes are applied when searching for funds including companies within the asset class Listed equity and funds including companies within the asset class Fixed income. When making appointment of managers the defined criterias/themes are part of the decision. In addition, there is also a review of the manager itself as regards how the ESG work within the asset manager organization are planned, organized and executed. Finally, the monitoring include semi-annually screning of the portfolio towards the ethical citerias. Any «findings» may lead to a reaction. The reaction will be adjusted due to how serious the violence are considered to be. Dialogue with asset managers and cooperation with other investors are typical ways to react. Ovf always choose dialogue first. If not acceptable response, we may choose to sell the fund.