At Nordea we do not see high ESG standards as an add-on, but as a precondition for creating growth and long-term results. Therefore, we have created a family of investment funds under the Stars brand.
In the Stars funds, we proactively select high-quality ESG companies rather than negatively screening out poor ESG industries. We do this through a combination of engagement, thematic research, field trips and ESG analysis – with each element serving its own specific purpose.
We believe that being aware of and adaptable to ESG challenges will be a key enabler for a company to survive the tremendous geopolitical challenges ahead.
In that sense, the Stars concept is all about finding tomorrow’s winners, which we believe will be companies with sustainable business models and the ability to conduct their business responsibly in relation to their stakeholders – employees, suppliers, customers, investors and society at large alike.
Our ambition is to create shareholder value by identifying companies that integrate environmental, social and governance metrics, as well as financial metrics, into their business model and strategic decisions. We are confident that responsible companies who proactively work with these metrics and have a clear and transparent process for dealing with them expose their business to less risk.
This will not only create a solid foundation for better long-term returns, but hopefully also make the world a little bit better.
4 Stars to choose from
Global Stars is the latest addition to the Stars family, and it invests in equities in 50-60 companies across the world. Global Stars only invests in companies rated B+ or better in our internal ESG rating. Emerging Stars invests solely in emerging market equities in countries such as Brazil, India and China. The fund typically comprises 40-60 companies. Nordic Stars consists of about 50 equities with the most sustainable business models in the Nordic countries. Swedish Stars was the first investment fund based on positive selection and was launched in the spring of 2011. The fund is a focused equity fund with 30-40 holdings.