Storebrand launches “equal opportunities” fund

Storebrand has just launched Storebrand Equal Opportunities, a fund investing in companies well-positioned to solve pressing social needs, such as women’s health, as identified in the UN Sustainable Development Goals (SDGs).

Steered by portfolio manager Ellen Andersen, the new fund is part of Storebrand’s series of SDG-themed Solutions funds. Storebrand Equal Opportunities will be classified within the scope of Article 9 of the European Sustainable Finance Disclosure Regulation (SFDR). At launch, the fund is initially available in Norway and Sweden.

- Historically, when talking about sustainable investing or ESG (Environmental, Social and Governance) investing, the "E" in ESG has gotten a lot of attention. Over the past couple of years, we have seen an increased interest in the "S", but there is still a lack of funding for the social needs defined in the SDGs, says portfolio manager Ellen Andersen.

- But now, alongside the existing opportunities, we see rising awareness about the funding gap, and policy frameworks falling into place. So, we believe the timing is ideal for a fund focused on this aspect of social needs. 

Third fund in Storebrand’s SDG-oriented “Solutions” portfolio
Storebrand Equal Opportunities arrives as the third in Storebrand’s Solutions family of SDG-themed funds. The other Solutions funds that Storebrand has previously launched, address the themes of renewable energy, and smart cities. Each of the funds seeks investment opportunities guided by themes taken from the United Nations Sustainable Development Goals (SDGs). The United Nations 2030 Agenda for Sustainable Development, a set of 17 Sustainable Development Goals (SDGs), creates opportunities for investors to allocate capital to help accelerate sustainable development. Within the SDGs are outlined a series of social goals that the world needs to resolve by 2030.

Recently, the EU has published a draft proposal for a social taxonomy, which in turn influences the investment outlook for various projects and the companies that are involved in them. If this taxonomy is enacted, the new regulation could set in motion a rising - and much-needed - focus on the social objectives of ESG investing and of the UN SDGs.

Global scope
The investment universe for the fund is global, providing coverage of both developed markets and emerging markets. Storebrand aims for this fund to help fulfil a core principle underlying the SDGs: creating equal access to opportunities for the world’s entire population.

The research underlying the United Nation’s SDGs indicates that many societies have huge unmet needs in essential services, such as the 1.7 billion people who lack access to banking or financial systems, and 3.8 billion people who remains offline. Alongside this are many other fundamental challenges, such as gender gaps in wealth, pay, education and business participation. Healthcare is another area in which many people lack access to services, an issue that has been more evident than ever since the global COVID-19 pandemic began.

Initial focus on essential services
While the SDG’s span the full range of ESG issues, Storebrand Equal Opportunities will initially focus on companies that are making essential digital, financial, and health-related services available to more people worldwide. The new fund targets companies across sectors such as women’s health, digital health, microfinance, and internet access, among others.

Storebrand sees significant opportunities in areas such as women’s health. Historically, research on women's health have been lacking, which has led to many female-related diseases being missed. However, over the past decade, femtech companies have emerged to help solve this issue, the development is driven by digitalization and personalized healthcare. One example of a company in the fund’s portfolio is Hologic, a global company that develops and manufactures women's health products.

- There are still billions of people who do not have access to essential services that most of us depend on. We believe the companies that help solve problems like these – some of the most important problems faced by people around the world - will perform well in the future, says Andersen.

The fund is currently available in Sweden and Norway

Disclaimer
A fund having performed well in the past is no guarantee for future returns. Other factors with an impact on how a fund may perform in the future include market developments, the fund manager's performance, the fund's risk profile, and management fees. When the shares a fund is invested in decline in value, it may lead to negative returns.