Storebrand ESG Plus 

Storebrand ESG Plus aims to be a broadly diversified, low-tracking error strategy pre-positioned for implementing the Paris Agreement. We achieve this using a multi-pronged approach. This makes Storebrand ESG Plus the core equity holding for climate aware investors.

The 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 strategy takes steps to ensure it is consistent with a fossil-free philosophy, which includes removing companies with large fossil reserves, and companies with significant exposure to the value chain of fossil fuel producers.

Next, in addition to Storebrand's Exclusion policy, additional 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.

Introducing Storebrand Global ESG Plus

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 strategy 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

To minimise carbon exposure, we optimise the portfolio, using full lifecycle emissions where possible. 

ESG score

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

Since its 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.

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%

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)
  • 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)
  • 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
  • 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)

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
  • PhD in Finance (NHH, 2010)
  • Masters in Financial Engineering (Columbia University, 2004)
  • 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
  • Masters in Economics and Business Administration specialising in Finance (NHH, 2003)

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Historical returns are no guarantee of future returns. Future returns will depend, among other things, on market developments, the manager's skills, the fund's risk profile and management fees. The returns can be negative as a result of price losses. There is risk associated with investments in the fund due to market movements, developments in currency, interest rates, economic conditions, industry- and company-specific conditions. Before investing, customers are advised to familiarize themselves with the fund's key information and prospectus, which contains further information about the fund's characteristics and costs.