Swedish insurer replaces natural resource funds BlackRock with Pictet Timber

Swedish insurance and pensions giant Länsförsäkringar ditched two BlackRock natural resource funds over sustainability concerns and replaced them with the Pictet Timber fund.

Länsförsäkringar Fondliv, a subsidiary of Länsförsäkringar that offers a selection of funds for personal retirement savers, removed BlackRock World Mining and BlackRock Natural Resources from its fund platform in February.

A spokesperson said Citywire Selector the funds were removed because their holdings exceeded Länsförsäkringar’s fossil fuel limits and violated its standards and both funds contained several holdings that Länsförsäkringar classified as controversial.

A spokesperson said the Pictet Timber fund was added as a more sustainable natural resource-based fund compared to its BlackRock predecessors. Its carbon footprint is about 50% lower than that of BlackRock World Mining and Natural Resources funds, according to the product manager of Länsförsäkringar Fondliv.

Länsförsäkringar Fondliv is the first supplier in Sweden to offer the sustainable wood strategy.

Launched in 2008 and managed by Christoph Butz, rated plus by Citywire, and his colleagues Mikael Jafs and Gabriel Micheli, the Pictet Timber fund has generated a return of 51.8% over a three-year period ending in March 2022 and has remained close to the average for the Citywire Basic Industries sector. , which returned 55.5% over the same period.

The fund’s investment universe encompasses the entire wood value chain, from raw materials to finished products such as paper and packaging, as well as investment in forestry innovation. The fund is classified Article 9 under SFDR.

“The inclusion of a fund with a high level of sustainability that invests primarily in timber is very much in line with our long-term investment philosophy of ensuring that our clients receive a pension that is as large and as sustainable as possible,” said Jim Rotsman, product manager. at Länsförsakringar Fondliv.

A spokesperson said that Länsförsäkringar Fondliv is constantly evaluating the sustainability of its fund offering and will be making several similar changes in the future.

Länsförsäkringar is a group of 23 customer-owned regional insurance companies. Combined assets under management amount to 711.5 billion SEK (68.8 billion euros) at the end of 2021.

Länsförsäkringar Fondliv is a fund platform for personal pension savers that offers fund management, collateral management and risk insurance.

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