Fixed-income investments

The fixed-income investments of the Pension Fund are generally managed through mutual funds.

Government bonds

The Pension Fund favours asset managers that evaluate ESG issues in target states. Asset managers investing in emerging market sovereign debt should take into account these countries' compliance with international human rights, environmental and other sustainable development agreements and recommendations. For sovereign debt in emerging countries, asset managers continuously monitor the development of these countries from an environmental, social and governance perspective and engage in active dialogue with the countries’ decision-makers on these issues. Asset managers also typically maintain their own rating system for eligible countries, in which ESG factors play an important role.

Corporate bonds

The Pension Fund selects asset managers that have proven their commitment to responsible investing by signing the Principles for Responsible Investment (PRI) and by drafting its own responsible investment policies. Such asset managers consistently incorporate ESG issues into their investment analyses through different methods and discuss responsible practices with companies. The Pension Fund favours, and monitors, funds that allocate share of their capital to green and sustainability linked bonds in the corporate loan portfolio.

The Pension Fund carries out a biannual, norm-based screening of all its equity and fixed income investments and participates in engagement activities.