No Significant harm to the Sustainable investment objective:
Captor invests responsibly by ensuring that the portfolio does not cause significant harm. This means that companies breaching international norms and conventions, or with material exposure to excluded sectors, cannot be included in the fund. If indications of such issues arise, Captor initiates dialogue to assess the situation, but if shortcomings are not addressed, the holding is sold.
Investment strategy:
The investment strategy is built on three core principles: selecting in, excluding, and engagement. The fund selects sustainable investments by investing only in bonds that meet sustainability classification requirements, such as green, social, sustainability, or sustainability-linked bonds. Transition companies and sectors important for the climate transition are also included.
The fund excludes companies with exposure to controversial weapons and nuclear weapons (0%), as well as companies active in alcohol, tobacco, pornography, commercial gambling, weapons and defence, and fossil fuels — all limited to a maximum of 5% of revenues. Companies breaching international norms or located in countries on UN or EU sanctions lists are also excluded.
In addition, Captor works actively with engagement. Companies are contacted both reactively when risks are identified and proactively on relevant ESG matters, to increase transparency, understand how companies manage sustainability risks, and strengthen our investment decision-making. Dialogues help ensure responsible investment practices, but when breaches of principles or exclusion criteria persist, the holding is sold.
Proportions of investments:
At least 85% of the fund’s investment will be in sustainable investment. The fund aims to have 100% sustainable investment, but by temporarily investing in covered bonds during significant inflows in the fund, they can avoid purchasing expensive sustainable bonds at the moment or those that do not align with their management strategies.
Monitoring of environmental or social characteristics:
Different holdings in our investments are exposed to sustainability risks to varying degrees, which can also vary over time. Therefore, it is important to continuously monitor the holdings in case the portfolio manager needs to make a new assessment of sustainability risks in any of the portfolio companies.
Methodologies:
The company continuously monitors the holdings in the fund to ensure that the fund's sustainability criteria are met, and sustainability risks are reduced. A more detailed description of the methodologies is provided in the Due Diligence section.
Data sources and processing:
Captor primarily uses Sustainalytics and Bloomberg to obtain ESG data. Some data is obtained directly from portfolio companies. In addition, Captor analyzes the companies themselves.
Limitations to methodologies and data:
Over time, Captor controls data quality by collecting, comparing, and, in cases of uncertainty, contacting companies directly. Some of the data that Captor collects will be estimates, and these estimates are not always entirely accurate. However, we consider them a good guideline until better data becomes available.
Due Diligence:
Captor has procedures in place for due diligence to ensure that each fund's sustainability criteria are met, and sustainability risks are reduced. Captor sees the following methods as fundamental in this work: examination and exclusion, assessment, monitoring, documentation, as well as follow-up and evaluation.
Engagement policies:
Captor works actively with engagement. Companies are contacted both reactively when risks are identified and proactively on relevant ESG matters, to increase transparency, understand how companies manage sustainability risks, and strengthen our investment decision-making. Dialogues help ensure responsible investment practices, but when breaches of principles or exclusion criteria persist, the holding is sold.
Attainment of the sustainable investment objective:
The fund uses Bloomberg MSCI Euro Corp Green Bond hedged SEK as a benchmark index. However, the index is not used to assess how well the fund meets its sustainable investment objective.
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