Sustainability risks


Hypoteket Fondförvaltning AB is an AIF-manager under the supervision of Finansinspektionen. As such, according to the Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector (Text with EEA relevance) and additional regulations and directives such as Commission Delegated Regulation (EU) 2021/1255 of 21 April 2021 amending Delegated Regulation (EU) No 231/2013 regarding sustainability risks and sustainability factors to be taken into account by Alternative Investment Fund Managers, we have an obligation to inform investors on potential sustainability related risks in the funds.

Hypoteket Fondförvaltning AB has adopted a sustainability risk policy, describing how Hypoteket Fondförvaltning AB as an AIF-manager integrates sustainability risks in the asset selection process of the various funds the manager oversees. 

Sustainability risks - identification and integration

Sustainability risks will vary from fund manager to fund manager, based on the nature of the funds. Hypoteket Fondförvaltning AB is a highly niched manager, with the only asset being Residential Mortgages originated by our sister company Hypoteket Bolån AB. We have identified the below set of environmental risks for Swedish Residential Mortgages:

There are also a number of potential social and societal risks that could have a negative impact on housing and the housing market:

Investment decision process (Due Diligence)

Hypoteket Fondförvaltning AB requires that Hypoteket Bolån AB considers all of the above factors in its credit approval processes as far as possible. For a selection of the sustainability risks such as flooding and energy efficiency, there will be specific guidelines in place as these are deemed to have potentially adverse impact on the investment over time if left unattended.  Neglecting climate related risks could lead to negative consequences as the concentration of high risk property may rise gradually over time, creating increased risk in the asset portfolio. Similarly, neglecting greenhouse gas emissions relating to the housing sector will lower the chance of meeting the net zero targets, while also creating additional risk for both the lender and the borrower as energy efficiency becomes increasingly important for the housing sector.

Further, Hypoteket Fondförvaltning AB requires full and total transparency from Hypoteket Bolån AB in sustainability related areas and that documentation can be provided upon request.