We believe strong performance over time depends on investing responsibly. Companies with a strong and/or improving record on the environment, corporate governance and social responsibility are, in our view, more likely to provide excess returns to investors over time. We thus examine issues surrounding the environment, corporate governance and social responsibility. Furthermore, analyzing a company’s ESG factors is a central part of our risk analysis.
Arctic Fund Management is a fundamentally oriented asset manager. The main target is to maximize long term returns to investors. We do negative screening through the exclusion list of Norwegian Government Pension Fund Global (NBIM). Securities excluded by NBIM are excluded from our investment universe. The portfolio managers integrate ESG issues in their fundamental, bottom-up investment process, through a company scorecard. This ensures that strong governance, a favorable environmental profile, and social responsibility are rewarded in our investment decisions, and vice versa.
Arctic Fund Management is a Signatory of the UN PRI, the UN Principles for Responsible Investments. The six principles commit us to include ESG in our investment analysis, be active owners, seek ESG disclosures, promote acceptance of the UN Principles, work to enhance our effectiveness in implementation, and report on our activities.
Arctic Fund Management has an internal company guideline for the exercise of external governance and use of voting rights in customer portfolios and funds, developed in line with the European Fund and Asset Management Association code for external governance and the UN PRI.
Companies should follow what we consider principles of good corporate governance. In Norway, these have been organized in guidelines from the Norwegian Corporate Governance Board (NCGB/NUES). Governance is included in our internal ESG score.
Read more about the various initiatives on their respective websites: