The SPP Sverige Plus, a fossil-free fund from the Swedish manager, which is part of the Norwegian Storebrand group, has received a five-star rating from Morningstar.
This, plus a three-year history will lower hurdles to investing in the strategy, said Åsa Wallenberg, CEO of SPP Funds.
The strategy does not invest in companies extracting or distributing fossil fuels, or companies with large fossil reserves. It prioritises companies with high sustainability ratings and seeks to optimise its carbon footprint by selecting companies with low carbon footprints. It also invests in 'solutions companies', which are defined as those contributing solutions to future climate challenges.
Andreas Poole, fund manager, said: "It is important that we not rely solely on renewable energy. Rather, we must find a broad, diversified solution portfolio that can have an impact in multiple ways. Part of our indexical thinking is to diversify ourselves in terms of risk, to not be overly exposed in one area, for example wind power, and that this approach will be the solution to the energy needs of the future. Taking climate and sustainability into account is not an obstacle to generating investment returns. On the contrary, it has been very beneficial and has contributed to the fund being awarded a five-star rating."