Published: June 29, 2022, 10:08By investing in companies whose products and services reduce global carbon dioxide emissions and contribute to the green transition, the Fondita Sustainable Europe fund has reaped great success. Over the past three years, it has risen by over 65 percent. But according to the manager Marcus Björkstén, they have only scratched the surface of a trend that will continue for many years. – Governments, authorities and companies are tightening their goals to become carbon neutral and 'environmentally smart'. This trend will accelerate further over the next five years and involve large investments, says Marcus and continues: – Companies that are well prepared for this strong wave of investments are likely to enjoy a market with structural growth. It is precisely this growth that Fondita Sustainable Europe is trying to take advantage of. By investing in companies that have products or services that are part of the solution to climate and environmental threats, the fund will return better than the market in the long term. Concentrated portfolio of "climate fighters"The fund is actively managed in accordance with Fondita's management philosophy, which includes identifying companies with a unique market position, strong management and profitable and sustainable business models. Each holding must have a meaningful contribution to the return, which is why the portfolio is concentrated in about thirty European companies, with an emphasis on the Nordic region. The fund's top positions include the Danish wind power companies Vestas Wind and Orstedt and the Norwegian solar energy producer Scatec. But even lesser-known companies that are early in their product development are in the portfolio. These include the Norwegian environmental technology company Aker Carbon Capture, the Dutch water treatment company Ekopak and the British battery manufacturer Ilika. – We have a smaller share of the portfolio in companies that develop innovative solutions to combat the climate threat, but which have a long way to go in terms of product development. Ilika is a typical example. The company develops so-called 'fast-fast' batteries that are smaller than traditional car batteries, charge faster and are less flammable. Such a product would of course be revolutionary for the electric car market, says Marcus. Sustainability in focusGiven the fund's focus, it is natural that sustainability becomes a central part when managers evaluate companies. And according to Björkstén, Fondita Sustainable Europe is one of the few funds placed in the most sustainable category according to the EU's new taxonomy. – We take sustainability very seriously, not least as we are convinced that companies with a strong sustainability profile also tend to outperform in other areas and thus become good investments in the long term. – In the case of Fondita Sustainable Europe, the environment and social responsibility are integrated into the business models of the companies we invest in. Therefore, the fund is also placed in the most ambitious category according to EU taxonomy. In fact, very few funds have managed it, despite the fact that sustainability has been on the agenda for a long time, the manager concludes. read more hereAbout Fondita Sustainable EuropeFondita Sustainable Europe is an actively managed fund that invests in companies whose products and services enable a reduction in global carbon dioxide emissions and which contribute to the more efficient use of natural resources. The fund has been awarded both the Nordic environmental certificate Swan and the Austrian environmental certificate Ecolable. In addition, it has received the highest rating – five stars – from Morningstar.
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