The financial crisis turned 2008 into an interesting year as far as Mistra´s asset management is concerned. The evaluation of asset managers shows that the situation is stable. The trustees have kept to the established strategy to set sustainability criteria even during difficult economic times.“It is extremely important to us to have a vivid dialogue with our asset managers, both to keep track of how our sustainability requirements have affected the makeup of the portfolio and to what extent it has contributed to the yield, but also because we learn from each other," says Eva Thörnelöf .
ESG
The sustainability criteria, ESG (Environment, Social, Governance), had either a positive or no affect on the yield compared to the benchmark index.
But the evaluators also emphasize the ESG information as something to keep an eye on when it became apparent that several of Mistra managers used the same source for the ESG information.
In the evaluation, one of the largest managers was downgraded from integrating the ESG criteria “partially" to using these criteria “minimally" in making investment decisions.
“It is still difficult to integrate sustainability criteria in interest rate management. They are lagging behind in the methodology," says Eva Thörnelöf.
The value fell
The financial crisis has made a sizeable impact on the value of Mistra's capital. The value of the portfolio fell 19.1 percent in 2008 with the benchmark index standing at 14.4 percent. At the end of the year Mistra's capital was 2.7 billion SEK.
“We missed our benchmark index due to some of our interest-bearing securities being valued very low," says Eva Thörnelöf.
One of Mistra's largest equity managers, Generation Investment Management, was however, a subject of joy—and it is not the first time they were a stand out. According to Martha Josefsson, President of the Mistra´s asset management committee, they integrate sustainability considerations in investment analysis more than other managers.
UNPRI
In December 2008. Mistra also signed UNPRI, the United Nations Principles for Responsible Investment. There is a list of a number of principles to guide responsible investment. Corporate or institutional owners can agree to respect the principles by signing the list agreement.
For 83 percent of Mistra's capital, the managers chose to sign-on to UNPRI's principles and others are planning to join them soon.
