Investors' needs are constantly changing across the Nordic Region. This also applies viewpoints on tobacco, as it is becoming increasingly common for both institutional and private customers to not want it among their investments. This has been made clear according to ongoing dialogue and surveys with customers in the Nordic countries.
Having reservations about tobacco is an attitude in line with the feedback that has come from a number of Danske Invest's institutional customers. That is why Danske Invest now chooses not to invest in tobacco across all the institution's funds. This applies to both actively and passively managed funds.
Tobacco is added to three other restrictions
The tobacco restriction includes both equity and bond investments for all Danske Invest funds and will be implemented in the period after 19 November 2019. The restriction on tobacco is added to Danske Invest's current investment restrictions applied to companies that derive most of their sales from thermal coal, tar sands and controversial weapons.
“As an investment institution, it is central for us to listen to the investors and their expectations. At the same time, the exclusion will not undermine our ambition and opportunity to deliver attractive, risk-adjusted returns”, said Danske Invest CEO Robert Mikkelstrup.
Definition: Tobacco products are products made wholly or partially of leaf tobacco. Tobacco products include electronic cigarettes and other "next generation" tobacco products.
Criterion: No investment will be made in companies with more than 5% turnover from tobacco products.
Excluded companies: based on the tobacco definition as well as the criterion, 66 companies will be excluded.