Danske Invest has initiated the process of re-categorising most of its funds – a process that will continue for the rest of the year. This means that by the end of the year, more than 140 funds across all Danske Invest markets may be termed either ESG funds or funds with a sustainable investment objective. The re-categorisation is aligned with the so-called Sustainable Finance Disclosure Regulation (SFDR).
“We’re constantly seeking to develop relevant investment products that are focused on sustainability – both to meet our customers’ demands and to help support the transition towards a more sustainable society,” says Robert Mikkelstrup, CEO of Danske Invest.
We’re also increasing transparency for investors by providing more information about the sustainability aspects of our funds.
“We’ve been working with responsible investments for many years. As a result, Danske Invest has a strong foundation, with thoroughly developed processes, well-developed systems and resources for the re-categorisation. We’re looking forward to being able to communicate in more detail about how we will integrate and influence sustainability through our work with individual funds,” says Robert Mikkelstrup.
What will change?The Danske Invest Global Sustainable Future will be re-categorised as a ‘fund with a sustainable investment objective’. The sustainable investment objective of Global Sustainable Future is to help support the transition towards a more sustainable economy and support one or more of the UN Global Sustainability Goals (SDG’s). A similar sustainable investment objective will apply to European Corporate Sustainable Bond and Global Corporate Sustainable Bond as both funds will become funds with a sustainable investments objective to support the UN Sustainable Development Goals (SDGs).
In addition, the index fund, Global Index Restricted, will change benchmark and track a climate benchmark that meets the requirements of the EU's Paris-adapted Benchmark and be re-categorized as a fund with a sustainable investment objective. Paris-adapted benchmarks, like the EU benchmark for climate change, pursue a goal of contributing to lower CO2 emissions.
This summer, we aligned six of our index funds in Denmark and they became funds with a sustainable investment objective. The sustainable investment objective of the index funds is to contribute to lower carbon emissions by tracking an EU Climate Transition Benchmark. The EU Climate Transition Benchmarks have lower emissions than the broad indices.
You can find our funds with sustainable investment objectives in our list of funds. Look for the green leaf symbolising a fund with a sustainable investment objective.
Several funds will also be re-categorised as ESG funds. Across all markets, more than 130 funds may be termed ESG funds by the end of the year. ESG funds are characterised by promoting environmental and social aspects through the selection of investments, by influencing the companies invested in and by deselecting companies that underperform in terms of ESG criteria.
You can find our ESG funds in our list of funds. Look for the green globe symbolising an ESG fund.
EU wants to promote sustainable investmentsOn 10 March this year, the EU introduced new sustainability-related disclosures for the financial sector, the so-called Sustainable Finance Disclosure Regulation (SFDR). Among other things, the SFDR provides the sector with a general framework for the disclosures required to be given to customers on the sustainability-related characteristics of investment products. The aim is to provide more detailed disclosures on the sustainability-related aspects of investment products to enhance transparency to investors and enable cross-product comparisons.
As a result of the new EU rules, Danske Invest categorised a large number of funds as ‘ESG funds’, corresponding to the Article 8 category of the SFDR, already back in March. In June 2021, Danske Invest took another step by aligning six index funds to the Article 9 category of the SFDR. Now, Danske Invest is prepared to further expand the range of ESG funds.
The SFDR is part of the EU Action Plan on Sustainable Finance, which aims to promote investment that supports sustainable development. Over the coming years, the EU will introduce further regulatory measures that will, in the long term, support sustainable development and make it more transparent and attractive for you as an investor to invest with a sustainable focus.
What does this mean for you as an investor?If you have already invested in one of the funds that are being re-categorised, you do not need to do anything. The changes mainly mean that Danske Invest investors will have more insight into how we work with responsibility in the individual funds.
This publication has been prepared as marketing communication and does not constitute investment advice. Please note that historical return and forecasts on future developments are not an indication of future return, which can be negative.
Always consult with professional advisors on legal, tax, financial and other matters that may be relevant for assessing the suitability and appropriateness of an investment.
Please refer to the prospectus and the key investor information before making any final investment decision. The prospectus, the key investor information of the fund and information regarding complaints handling (investor rights) can be obtained in English at danskeinvest.lu by clicking on "our funds" -> choose the relevant fund overview -> press relevant fund -> press "documents".
If the fact sheet relates to an ESG-fund or a fund with a sustainable investment objective, you can find more information about the sustainability aspects of the fund at danskeinvest.lu by clicking on "our funds" -> choose the relevant fund overview -> press relevant fund -> press "documents".
The decision to invest in an ESG-fund or a fund with a sustainable investment objective should take into account all the environmental and/or social characteristics of the fund, or sustainable investment objective as described in the prospectus.
Danske Invest Management A/S may decide to terminate the arrangements made for the marketing of its funds.