The fixed-income investments of the Pension Fund are generally managed through mutual funds.
Government bond investments finance state activities. The Pension Fund favours asset managers that evaluate ESG issues in target states. This is particularly crucial for asset managers investing in government bonds offered by developing countries. In such cases, the asset managers should consider the degree to which the countries in question comply with international agreements and recommendations relating to human rights, the environment and other sustainable development issues.
Corporate and convertible bonds
The Pension Fund selects asset managers that have proven their commitment to responsible investing by signing the Principles for Responsible Investment and by drafting its own responsible investment rules. Such asset managers consistently incorporate ESG issues into their investment analyses through different methods and discuss responsible practices with companies.
The Pension Fund requires that the depository bank acts responsibly and that the managers of the money-market funds consider ESG views in as far as the issuers are concerned.
The Pension Fund carries out a biannual, norm-based responsibility screening of all its government bond, corporate bond and money-market investments and participates in engagement activities.