In active management, the manager aims to achieve a return that exceeds the average return on the markets in which the funds are invested, i.e. higher than the fund’s benchmark index.¹ Most of our actively managed equity funds are based on fundamental management, but we also have a few funds that have a quantitative management method where the selection is rule-based and systematic.

Basic management

• The investment manager makes decisions to buy, sell or keep a security depending on factors such as economic conditions, market developments or perceptions of future opportunities and developments.
• The investment horizon is long-term and the managers select the companies they consider to be attractively valued in relation to their view of the company’s future profit potential.
• The focus is on company selection, but sector, region and theme analysis are also important parts of the strategy.
• The managers integrate sustainability as a natural part of the funds’ investment processes and strive to select companies that perform well in terms of sustainability, considering the risks in the industry to which the company belongs.
• As a major owner in many companies, it also gives us the opportunity to influence companies to become more sustainable. Several of the funds also use thematic investments with a focus on sustainability.

Quantitative management

• Investments are selected based on mathematical models and statistical correlations.²
• The models will analyse the market to find different trends that can be used to create excess returns in the funds.
• Computers are used here to efficiently analyse a large amount of data. The computers can be programmed to look for precisely those factors that we have seen yield greater than the historical average.
• The managers then select securities with characteristics that are expected to contribute positively to the portfolio’s long-term returns. For example, equities that are low-valued, have stable earnings, good cash flows and show a positive price and earnings trend.
• Other types of quantitative strategies, such as foreign exchange and derivative transactions, can also be used to create long-term good value growth.
• The managers integrate sustainability as a natural part of the funds’ investment processes and strive to select companies that perform well in the area of sustainability.

An example of a fund that has a quantitative management method is Global Impact, where the fund manager selects companies based on a systematic selection method that are assessed to contribute to meeting the UN’s 17 global sustainability goals.

Global impact

¹ Active management is no guarantee that the Fund will outperform the Fund’s benchmark index or generate higher returns than the corresponding index fund. The Fund’s performance may be both better or worse than the performance of the Fund’s benchmark index.

² The active risk level measured as Tracking Error in these funds generally lies somewhere between traditional active management and index-based management.

Our index-linked funds are known as Access and Access Edge. The aim of our index-linked funds is to create a portfolio with a high sustainability profile while replicating the characteristics of its benchmark index as far as possible. The funds are managed on the basis of a quantitative management method.

Quantitative management

• The funds use a rule-based and systematic selection methodology in which investments are selected based on mathematical models and statistical correlations.
  Computers are used here to efficiently analyse a large amount of data.
• The fact that the funds are close to the index means that no positions are taken with the aim of creating an excess return compared to the index.
• There may be differences in returns between the funds and the index due to the funds’ sustainability criteria. For example, stocks included in the Index may be excluded due to non-compliance with sustainability criteria and rewarding companies with good sustainability performance in the portfolio.
• All our index-linked funds are managed with sustainability optimisation. The manager integrates sustainability into the funds by adapting the selection process and steering the funds towards sustainability-related key figures.
• The cost of an index-linked fund is normally lower than that of a corresponding actively managed fund. This is because less resources are required for time-consuming analysis work, company meetings, etc.

The Access Edge funds have an even higher degree of sustainability optimisation and a greater focus on climate. The funds select companies with a low carbon footprint and invest up to 10 per cent of the fund assets in companies that, through their activities, contribute in various ways to the transition to renewable energy and energy efficiency, the UN’s global climate goals.

Swedbank Robur Access

Swedbank Robur Access Edge

Our fixed income funds have an active investment strategy based on the manager’s forecast of interest rate developments in relation to market pricing. Our corporate bond funds have an active investment strategy that focuses on company selection, but sector, region and theme analysis is also important.

Short and long-term fixed income funds

Short-term fixed-income funds have the lowest risk of all types of fixed-income funds and invest in interest-bearing securities with an average maturity of up to one year. Long-term fixed-income funds, also known as bond funds, have a higher risk than short-term fixed-income funds, but they can also provide a higher return.

• Our fixed income funds have an active investment strategy based on the manager’s forecast of interest rate developments in relation to market pricing.
• The funds base their strategy on analyses of the macroeconomic situation, assessment of credit risks and liquidity requirements, among other things.
• The strategy includes, among other things, selecting the average fixed interest period and selecting securities within the various segments and geographical areas of the fixed income market that are deemed to have a good valuation.
• The investment manager also exploits the difference in interest rates between different types of fixed income securities.
• Most funds invest in Swedish government, municipalities and regions as well as secured mortgage bonds.
• All our fixed income funds follow Swedbank Robur’s Responsible Investment Policy.

Corporate bond funds

Corporate bond funds invest in bonds issued by companies. The funds may have different focus and the differences in risk and return may be large depending on whether the fund invests in bonds issued by large stable companies or small and uncertain companies.

• Our corporate bond funds have an active investment strategy where the selection of individual securities focuses on company selection, and where sector, region and theme analysis are also important parts of the strategy.
• When selecting individual securities, the assessment of the value compared to similar bonds and the difference in pricing over different maturities are important elements of the analysis.
• There is a wide range of companies to invest in, and there are good opportunities to exclude companies that have weak sustainability efforts.
• The corporate bond funds prioritise investments that, based on the framework for the UN’s global goals, have an impact on the climate transition in the right direction.
• By investing in sustainable financial instruments such as green bonds, the funds contribute to financing projects that promote environmental or social aspects.

Corporate bond funds

Most of our mixed funds are actively managed and invest in both equities and interest rates, either directly in securities or in other funds. In addition to investments in equities and interest rates, there are opportunities for investments in corporate bonds, alternative interest rate and equity investments as well as derivatives and external funds.

• The mixed funds have an investment strategy where allocation between assets together with sustainability, sector and regional analysis are important elements.
  Several of the funds also apply thematic investments based on the megatrends we believe in. Examples of themes include urbanisation, demographic change, digitalisation and technology, as well as environmental improvements and climate-smart innovations.
• The objective of the funds is to outperform their respective benchmarks. Additional returns are generated by making short-term deviations from the index through over/underweighting between different asset classes based on an analysis of their return potential in relation to its risks.
• The risk level in each fund is largely maintained even when the funds are adjusted to the market situation.
• Sustainability is an important part of investment selection. Through an active dialogue with external fund management companies, we can influence and communicate our positions related to sustainability and climate. That the fund management company in question has signed the Principles for Responsible Investments (PRI) is a fundamental requirement for investment.

Foundations

Selection funds

Our actively managed Generation Funds, Transfer, are managed on the basis of a quantitative management method where the selection is rule-based and systematic and investments are selected based on mathematical models and statistical relationships.

Quantitative management

• The models will analyse the market to find different trends that can be used to create excess returns in the funds.
• Computers are used to efficiently analyse a large amount of data. The computers can be programmed to look for precisely those factors that have historically yielded a higher than average return.
• The managers then select securities with characteristics that are expected to contribute positively to the portfolio’s long-term returns.
• As with individual equities, the selection of asset classes and markets is based on mathematical models where valuation for different markets is central.
• Other types of quantitative strategies, such as foreign exchange transactions and derivative transactions, can also be used to create good long-term value growth.
• The transfer funds comply with our Responsible Investment Policy. In addition to the policy, the funds also exclude alcohol, weapons and war material as well as commercial gambling activities and do not invest in companies that are involved in violations of international norms and conventions on the environment, human rights, working conditions and business ethics.

Generation fund transfer