In 2018, the Arctic Aurora LifeScience team published their first report on sustainable investment with the title “Responsible Investments in Life Science”. In this first report, the team described their thoughts on sustainable investing, the integration of ESG information in the investment process and how, through investments, Arctic Aurora LifeScience contribute to the fulfillment of the UN’s SDGs. Now, the teams 2019 report has been published.
From the outset we have had a strong conviction that integrating ESG information in the investment process will lead to better risk adjusted return. Not managing ESG related factors is a risk and can lead to negative effects on a company’s operations, results and its stock price. Companies that manage their business with a holistic mindset not only narrowly focusing on measures captured by traditional accounting but thinking about all their stakeholders, are to our mind, more likely to be successful over time.
Investing sustainably is to us investing in companies that have an attractive business today, sound risk management of all risks and, not least important, a business that contribute to sustainable development long term. To measure this last factor, we use the UN’s Sustainable Development Goals (SDGs) as our guide. Given the focus of our fund, the SDG #3 – Good Health and Well-being and is most in focus, but we are mindful of that all the goals interact and that one goal cannot be allowed to be met at the expense of other goals.
Our portfolio is a mix of large companies with over 100.000 employees and billions of dollars in sales and small companies employing a smaller group of primarily scientists being years from having a product ready to hit the market. Given the difference in the nature of their businesses, some being producing companies, some mere research facilities, the materiality of something like waste water management or energy consumption can vary considerably. Naturally the size of a company also affects how much time and resources can be spent on compiling comprehensive reports on ESG policies and sustainability. With this background, we adapt our approach accordingly. In the case of large companies, we rely primarily on published reports available from the companies’ web sites or information providers, such as Bloomberg. In the case of smaller companies that do not currently publish the data we would like to see, we conduct our own ESG survey that we send out annually to those of our portfolio companies where we require additional information.
- Read the report in full - Arctic Aurora Sustainability Report 2019
- Artic Aurora LifeScience - Sustainability Investing
- Invest in Arctic Aurora LifeScience - Private Clients (Norwegian only)
- For institutional clients, please contact one of our product specialists
Arctic Aurora LifeScience is an equity fund investing in global biotechnology and pharmaceutical companies. The fund is run by former portfolio manager in the Swedish AP3 Fonder, Ulrica Bjerke, as well as Dr. Torbjørn Bjerke, both with 20 years of experience from the market. Arctic Aurora LifeScience was launched in May 2016 with both hedged and un-hedged share classes.
Past performance in Arctic Aurora LifeScience is no guarantee for future returns. Future returns depend on the market, fund manager skill, fund risk level, costs, among others. Performance in the fund may at times be negative and may for this fund vary considerably within periods.