Storebrand Global ESG Plus

– The Core Equity Holding for Climate Aware Investors


The Storebrand ESG Plus Strategy

First, fossil fuel companies are excluded (defined as those whose revenues from fossil-related activities exceed 5% of total revenue). Furthermore, the fund takes steps to ensure it is consistent with a fossil-free philosophy, which includes removing companies with large fossil reserves, and companies which have a large exposure to the value-chain of fossil fuel producers.

Next, in addition to the Storebrand Standard group-wide exclusion policy, extra exclusion removes companies involved in alcohol, gambling, weapons or pornography from the investment universe. Investments are then tilted towards high ESG and low carbon footprint scoring companies.

Finally, 5-10% of the portfolio is invested in solution stocks from a positive ‘white-list’ of around 100 companies which provide products and services that facilitate the transition to a low carbon economy (e.g. renewables, energy efficiency, low emissions transport and recycling).

The portfolio is constructed using the MSCI Barra risk model to minimise tracking error towards the market cap benchmark, MSCI World, subject to a list of climate-motivated constraints: Not investing in fossil fuel companies; investing significantly more than the benchmark in climate solutions companies; having a high ESG rating and a low carbon footprint. The strategy results in a broadly diversified, highly liquid and climate-aware portfolio with low tracking error.

Related Content


Webinar by Henrik Wold Nilsen

The Storebrand Standard

Extra Criteria beyond The Storebrand Standard

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– Aims to create a broadly diversified, low tracking error fund which is pre-positioned for the implementation of the Paris Agreement. This is achieved using a multi-pronged approach.


A short film introducing Storebrand Global ESG Plus



Henrik Wold Nilsen

Senior Portfolio Manager

  • Joined Storebrand Asset Management in 2010
  • Masters in theoretical high energy physics (University of Bergen, 2005)
  • Doctorate in experimental high energy physics (University of Freiburg, Germany, 2009)
  • Post-doctoral position in Freiburg in connection with research lab CERN, Geneva (2009-2010)


Why Invest in Storebrand Global ESG Plus?

Low cost-solution meant to substitute normal index funds in the portfolios of climate-aware investors

  • Core-holding strategy with broad and consistent climate adjustments
  • Reduces climate risk by not investing in the fossil fuel value chain
  • Increases exposure to climate solutions via 10% dedicated allocation
  • Low carbon footprint
  • High ESG score
  • Systematic, risk-minimising portfolio construction, expected tracking error below 1%

ESG_Puzzle


Fund Facts

  • Domicile: Luxembourg
  • Regulatory Regime: UCITS
  • Legal Structure: SICAV
  • Management Fee: 0.30 %
  • Investment Universe: Global Developed Markets
  • Fund Benchmark: MSCI World Net
  • Inception Date: Strategy launched on 18 April 2016 (SPP Global Plus). Lux version of strategy launched 24 June 2019

Class
A | EUR
B | EUR
B | GBP
H | GBP
ISIN LU1932669598 LU1932670927 LU1932671149 LU1932672030
Bloomberg Ticker STGEAAE LX 
Launched 24 Jun 2019 4 Dec 2019 4 Dec 2019 10 Jan 2020
Fund page To fund page To fund page To fund page To fund page



Investment Strategy

Storebrand Global ESG Plus is a unique fossil-free global equity strategy which aims to provide long-term capital growth through a model-based portfolio of developed market equities. The fund is managed systematically and seeks to reproduce the risk and return profile of the MSCI World Index whilst excluding companies within fossil fuel related industries and with additional ESG criteria and sustainability focus.

The strategy seeks to provide a low cost investment solution for the global climate emergency by using five key components:

Engagement

We are active owners and engage on behalf of all assets we manage, both individually and via collective forums such as Climate Action 100+.

Divestment

We exclude fossil fuels (>5% of sales) and companies with climate negative exposures (e.g. plastics and meat).

Green Solutions

We allocate <10% of the portfolio to climate solutions companies, such as renewable energy, green transport, recycling, water and energy efficiency.

Low Carbon Footprint

We optimise the portfolio, using full lifecycle emissions where possible, to minimise carbon exposure.

ESG Score

We have developed a proprietary ESG rating system to analyse over 4,000 companies, using qualitative and quantitative assessment of sustainability risks and opportunities.

Since inception over three years ago, the strategy has provided index relative returns of +1.1% with low tracking error, low carbon risk, low stranded asset risk, high exposure to green revenues and a stronger ESG score*.

*Based on SPP Global Plus track record, inception April 2016, gross of fees and in GBP. Other metrics based on Morningstar and internal analysis of Storebrand Global ESG Plus Fund vs. competitors and low carbon index strategies.







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Global Equity Investment at Storebrand Asset Management

Key points

Quantitative asset management
  • Integrated with Storebrand’s principles for responsible investment
Expertise and experience
  • Specialist team with 34 years combined experience of quantitative investing
Economies of scale benefits
  • €23.3bn under management
Areas of product focus
  • Index-tracking strategies
  • ESG-enhanced index strategies
  • Factor strategies
Strong performance across market cycles
  • Index-tracking funds consistently low tracking error



Meet the team

Bård Bringedal

Head of equities and Senior Portfolio Manager
  • Joined Storebrand Asset Management in 2006
  • Previously worked for Bekk Management Consulting (1 year)
  • Holds an MSc (NTNU, 2003), Masters in Business Administration (NHH, 2005), CFA (2010)

Andreas Poole

Senior Portfolio Manager
  • Joined Storebrand Asset Management in 2008
  • Previously worked for Data Nova (3 years) and TietoEnator (1 year)
  • Holds an MSc (NTNU, 2003), Masters in Business Administration (NHH, 2008), courses on statistics and data analysis (University of Oslo)

Henrik W. Nilsen

Senior Portfolio Manager
  • Joined Storebrand Asset Management in 2010
  • Holds a Masters in theoretical high energy physics (University of Bergen, 2005), a doctorate in experimental high energy physics (University of Freiburg, Germany 2009), followed by a post-doctoral position in Freiburg in connection with research lab CERN, Geneva (2009-2010)

Lars Q. Sørensen

Portfolio Manager
  • Joined Storebrand Asset Management in 2016
  • Previously worked for Storebrand Life Insurance (strategic asset allocation, defined benefit scheme), MSCI, RiskMetrics and NBIM
  • Holds a PhD in Finance (NHH, 2010) Masters in Financial Engineering (Columbia University, 2004) and Business and Economics (NHH, 1999)

Geir Magne Bøe

Portfolio Manager
  • Joined Storebrand Asset Management in 2018
  • Previously worked for Storebrand Life Insurance from 2007 to 2009 and from 2014 to 2018 with strategic asset allocation and risk management
  • Holds a Masters in Economics and Business Administration with specialism in Finance (NHH, 2003)