Länsförsäkringar AB, which is the market leader in non-life insurance and the fifth largest retail bank in the Swedish market has launched a new fund. The fund is called FossilSmart and basically avoids producers in the energy sector with relations to coal, gas and oil.
- It's not just because carbon dioxid causes climate change and extreme weather situations but also because it quite simply is a bad investment case to invest in companies that are more limited through legislation than others. Therefore the FossilSmart fund avoids this part of the energy sector," Eva Gottfridsdotter-Nilsson, CEO of the fund company says in a press release.
The fund, which is noted in Sweden in Swedish kronar, will put emphasis on companies with a lower carbon dioxid emission and on companies that follow the principles for responsibles investments applied by Länsförsäkringar. Länsförsäkringar has a total AUM of 140 billion Swedish kronar (14 billion Euro).
The fund will be managed by Black Rock and the management fee will be at 0,70 percent. The fund is expected to outperform MSCI World after costs.
Länsförsäkringar AB is a Swedish federation of 23 Swedish mutual insurance companies.
The Länsförsäkringar Group had a total of approximately 3.7 million customers in 2016 and 6,200 employees, most of them in Sweden.