Our funds

• Investment process

  We use a mix of top-down and bottom-up approaches in our investment process. This means that macroeconomics, market trends and industry choices are seen in the context of price, liquidity and a thorough company analysis.

  This provides a basis for the return and risk assessment that we arrive at.

  We use our own models to assess the range of outcomes a given security may have. This is based on internal and external valuations and the managers’ assessment of risk. We thus have disciplined follow-up of all positions in the respective fund.

  It is the manager’s subjective assessment that is decisive for all investment decisions.

  Fondsfinansformula – How do we evaluate companies?

  • We follow developments in the world economy closely and describe our view monthly in the market report.
  • We are committed to long-term trends such as the technological, demographic and the green shift
  • We like industries with extraordinary opportunities for returns. We exclude industries that are not socially beneficial.
  • We want flexible portfolios, and prefer that investments are made in companies with good liquidity
  • We generally avoid high-risk companies, particularly those with binary outcomes in technology or regulation
  • We want to know the companies we invest in. Meaning that we want to meet the management, know the ownership structure, understanding the business, value chain and value drivers.
  • We always consider the price carefully and naturally prefer undervalued securities.
• Investment philosophy

  We have a simple and well-established investment philosophy for all of our funds.

  • We assess the sectors from a macroeconomic perspective and combine this with a thorough fundamental analysis of the companies before investing. We invest in companies that are well positioned for long-term trends (such as the technological, demographic and green shift), preferring companies we can own over time.
  • We manage concentrated portfolios characterised by a high active share and normally an overweight in medium-sized companies. These companies are often not sufficiently analysed, so it is easier to misjudge their future earnings opportunities. Today’s medium-sized companies will often be the winners of the future. This creates scope for those of us who are active managers to find attractive candidates.
  • A conscious attitude towards risk is a key element of our investment strategy. Considerable weight is attached to risk both when investing in individual companies and in the composition of the portfolio. In the event of a positive outlook, the portfolio’s overall risk will be higher than the negative outlook. We seek to avoid companies with binary outcome spaces. Typical examples of this can be small companies that bet everything on the development of one product.

  For many years, we have invested according to the same investment philosophy that has resulted in good returns for our funds. In the future, we believe this approach will continue to generate solid results for our unitholders. In Fondsfinans, we have shown through several occasions that we are patient and have the courage to sit through periods when price developments have moved against investments. During such periods, we naturally assess whether the analyses are still robust. We know from experience that it can take time for the market to change the pricing of a company. In the long-term picture, daily exchange rate changes are often just noise.

• Best execution

  Best Execution Policy

  Background

  Fondsfinans Kapitalforvaltning (FFKF) is a mutual fund management company that manages Fondsfinans funds. This means that FFKF makes investment decisions and implements these on behalf of the mutual funds. These guidelines provide an overview of how and where investment decisions are to be made in order to achieve the best possible results for unitholders.

  Assessment of the best result when making investment decisions

  FFKF will take all reasonable steps to achieve the best possible result for the mutual funds in terms of price, costs, speed, probability of execution and settlement, size, nature and other relevant factors. To determine the relative weight of these factors, the following criteria will be considered:

  • the fund’s objectives, investment policy and risks as set out in the prospectus and, if applicable, articles of association
  • the nature of the order
  • characteristics of the financial instruments included in the order
  • characteristics of the trading systems in which the order can be placed

  In general, FFKF will place the most emphasis on:

  Price
  All FFKF mutual funds aim to achieve the best possible risk-adjusted return for unitholders. The price achieved when trading in financial instruments is therefore essential when assessing best workmanship.

  Costs
  The transaction costs of trading in financial instruments affect the fund’s return and will be given weight when assessing best performance.

  Speed
  When selling larger items, it may in some cases be in the interests of unitholders to accept a higher cost or worse price in order to complete the transaction within a reasonable time.

  Characteristics of the financial instruments included in the order
  In some less liquid securities, FFKF may choose a more expensive form of transaction in order to achieve the best execution.

  Assessment of the best result when placing orders

  Once FFKF has made an investment decision, trading in securities must always be carried out by a broker who is on the list of approved broker connections. The brokers on the list are selected, among other things, on the basis of:
  • History
  • Solidity
  • Ethical conduct
  • Transaction costs

  The list of approved broker connections is approved annually by the Board of Directors of FFKF.

  The CEO is responsible for ensuring that spot checks are carried out to ensure that the best results have been achieved for trades that have been completed. The results of the surveys are reported to Compliance, which logs the results.

  Remuneration schemes in Fondsfinans Kapitalforvaltning AS

  The Board of Directors of Fondsfinans Kapitalforvaltning AS (“Fondsfinans”) has adopted a remuneration scheme for the company’s employees and employee representatives. The remuneration scheme is in accordance with Regulation No. 1467 of 21 December 2011 to the Securities Trading Act and will be reviewed by the Board of Directors at least once a year. The remuneration system is designed to take sustainability risk into account and that risk-taking that is incompatible with the risk profile, articles of association or other memorandum of association for funds under management is not encouraged.

  Fondsfinans aims to have competitive pay and employment conditions, without being a wage leader. Fixed salaries for senior executives, employees with tasks of significant importance for the risk exposure of the management company or funds under management, as well as employees with control tasks, shall be sufficiently high for the enterprise to fail to pay the variable remuneration.

  Variable remuneration is based on a combination of the assessment of the person concerned and the performance of the relevant business unit, funds under management and the management company as a whole, over a period of at least two years. At least 40% of variable remuneration shall consist of shares in funds managed by Fondsfinans Kapitalforvaltning AS.

  For employees in Fondsfinans Kapitalforvaltning, at least 40% of the variable remuneration is paid evenly over a period of at least three years. As a general rule, the total variable remuneration shall be substantially reduced or eliminated if the financial performance of the management company or fund is weak or negative.

  Board members only receive fixed remuneration.

  For 2021, employees of Fondsfinans Kapitalforvaltning AS received a total of NOK 29,064,110 in remuneration divided among a total of 18 employees.