The award is organised by the magazine *Nordic Fund Selection Journal*, which gives professional asset managers the opportunity to nominate and present awards to investment teams that have achieved exceptional results. It was professionals with expertise in equity management who singled out the investment team in LD Pensions. A key factor in the decision was LD Pensions’ requirement that active ownership is a cornerstone of sustainable investing.
The award follows a process in which, back in November 2019, LD Pensions selected Nordea Investment Management as the new portfolio manager for an equity portfolio of sustainable investments. In spring 2020, Nordea took over the investments in the LD Miljø & Klima mandate fund and currently manages DKK 1.3 billion on behalf of LD Pensions.
For more than 10 years, Nordea has been working on investments with a focus on sustainability and, in recent years, on supporting the UN’s Sustainable Development Goals relating to the environment and climate. Along the way, the concept has been expanded to include active ownership, and it is constantly being developed.
Investment strategy with new fund managers
The selection of new portfolio advisers is a key step in the implementation of a new equity strategy focused on portfolio quality in terms of Return and risk, as well as the integration of ESG. And it is not only in the selection of portfolio advisers that LD Pensions distinguishes itself in relation to a sustainable agenda. Sustainable development is part of LD Pensions' investment strategy, which is why LD Pensions also collaborates with the non-profit organisation Future-Fit.
The partnership with Future-Fit provides both companies and LD Pensions with transparent and reliable indicators of sustainable development, and this helps to encourage companies to change their behaviour.
LD Pensions’ new equity fund managers
November 2019: Nordea Investment Management is appointed as portfolio manager for global sustainable equities.
January 2020: MP Investment Management was selected as the manager of the Danish equity portfolio. In making the selection, particular emphasis was placed on the manager’s efforts to strengthen active ownership in Danish companies.
March 2020: Goldman Sachs Asset Management is appointed as portfolio manager for global equity investments using a smart beta equity strategy. In selecting Goldman Sachs, particular emphasis was placed on the fact that they deliver a proven and academically underpinned strategy based on well-defined factors.
July 2020: Acadian Asset Management was appointed as portfolio manager for an equity portfolio employing quantitative stock selection across global equity markets. In selecting Acadian, particular emphasis was placed on the fact that its strategy and methods complement more traditional equity selection.
August 2020: GuardCap Asset Management is appointed as manager of a global equity portfolio focused on selecting high-quality shares with high growth and high earnings. In making this selection, particular emphasis was placed on the strategy adding further quality to the overall equity portfolio; furthermore, it was crucial that the strategy integrates sustainability and active ownership into the investment process.
February 2021: Federated Hermes International was appointed as the manager of the equity investments in the global emerging markets. The decision was based on Federated Hermes International’s ability to deliver a long-term perspective, independent risk monitoring, thorough equity analysis and a strong focus on ESG. By selecting Federated Hermes International, LD Pensions further strengthens the integration of ESG across its overall portfolio.
