Investments in Government Bonds

Government bonds are one of the potential investments that PFA uses when we work towards creating returns for our customers’ pension savings. The investments comply with international conventions.

The framework is international conventions

As a responsible investor, we do not want to finance countries whose actions violate international conventions, and we are complying with the general and internationally recognised standards for responsible investments.

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The international conventions do not cover all countries where, for example, democratic institutions are weak and there is a high risk of corruption taking place. Therefore, we have guidelines for this area and we screen the countries we invest in on an ongoing basis, among other things looking at human rights and the degree of democracy, corruption, press freedom, etc.

How we study countries

We have developed a method that allows us to screen potential countries that can be invested in, which amounts to approximately two thirds of the countries in the world. The final third are not possible to invest in, for instance because they do not issue government bonds.

Our screening consists of three steps that deal with a number of indicators and specific information relevant to assess the country, its situation and the needs of its people.

Based on this screening, PFA’s Responsible Investment Board will determine whether the country is appropriate to invest in and if there might be countries that should be studied further or excluded from our investments.

Here you can see an overview of the countries we are currently excluding

Learn more about our approach to investing in government bonds