Öhman sustainability fund allowed to invest in derivatives

Jonathan Boyd
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Öhman sustainability fund allowed to invest in derivatives

Öhman Företagsobligation Hållbar, a Swedish corporate bond fund that invests in investment grade securities of companies that are judged to be pursuing long-term commitments in regards to economic, environmental and social developments, will be able to invest in derivatives, the PPM platform has announced.

This means that the portfolio manager will have more ability to reduce or increase risk in the fund, according to PPM, which is run by the Swedish Pensions Agency, and offers the broadest fund platform for the retail market in Sweden. In turn, this means that the value of fund shares may vary more or less compared to previous movement in valuations, depending on what the portfolio manager decides to do, and this in turn affects the portfolio’s ability to generate return for investors.

Morningstar Sweden notes that the fund does not invest in securities of companies involved in fossil fuels, arms, alcohol, tobacco, pornography, or gambling, or companies involved in breaking international conventions.