Your choice of funds is very important. By choosing funds managed by active owners (those who influence their portfolio companies), it is shown that you have a higher probability of making a long-term profit, but most importantly - you ensure that your investment is in a portfolio managed by a fund company that exercises active ownership. Active ownership is considered to be one of the most effective mechanisms to:
🌿 Have a positive impact on society and the environment
↗️ Maximize profit
✅ Reduce risks
Many fund companies have the ambition to deliver returns with responsibility, thus they create funds with a variety of sustainability focuses. They exclude companies which they believe lack a sustainable focus, and they include companies that are at the forefront of green innovations, gender equality, human rights, etc. Fund companies work to influence the companies in their portfolio to take sustainable actions and is a core activity to drive sustainable investments. Through active ownership, investors interact with their portfolio companies to encourage these portfolio companies in a sustainable direction.
To conclude, if you are investing in funds, make sure the fund has an active owner. Information on how they work as active owners can be found on their website and/or in their annual reports on active ownership and sustainability. This is how shareholders, fund companies and their portfolio companies together make a contribution to sustainable development.