PFA Optional

PFA Optional is for those you of you want PFA to invest on your behalf but want to specify the overall risk of the investments yourself and who do not want an automatic gradual reduction of risk. You do not need to learn about shares, bonds, the real estate market, interest rates or alternative investments. Our specialists manage your money in the best possible way, based on the risk you are willing to take in relation to your return expectations.

PFA Optional 

With PFA Optional, you can freely select the distribution between PFA’s four risk funds: The Low-risk fund, the High-risk fund, PFA Climate Plus Low-risk fund and the PFA Climate Plus High-risk fund. Depending on your desired distribution between the Low- and High-risk funds and the proportion allocated to Climate Plus, the sustainability risks can vary.

The Low-risk fund and the High-risk fund

The Low-risk fund and the High-risk fund are savings products that, among other things, promote environmental and social characteristics. 

This is in part achieved by continually monitoring whether the companies in the products comply with international norms or conventions for areas such as environmental protection, labour rights and human rights and exercising active ownership via voting and corporate dialogues and by excluding specific companies and countries.

The Low-risk fund contributes to the EU’s climate targets by, among other things, investing in green bonds and properties that are built/renovated based on sustainable standards and by making direct investments in renewable energy infrastructure. 

The High-risk fund contributes to the EU’s climate targets by, among other things, investing in companies that supply solutions that stabilise and reduce greenhouse gas emissions and/or reduce or prevent negative impacts from current or expected climate changes.

 
 

Environmentally sustainable investments
The proportion of the Low-risk fund’s and High-risk fund’s environmental sustainability is assessed based on whether the investments’ economic activity contribute to one or more of the EU’s climate targets, whether they do not have a significantly negative impact on the EU’s climate targets and whether they operate in accordance with the OECD’s guidelines for multinational companies and the UN’s guiding principles for the private sector and human rights. 

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The calculation of the product’s proportion of environmentally sustainable investments pursuant to the EU taxonomy regulation is presented in the table below. There is only very limited data available on the parameter of environmental sustainability, as companies have only been obliged to report on this, pursuant to the EU’s taxonomy regulation, from 1 January 2023. The proportion of environmental sustainability is therefore based on estimates. The estimates are based on assessments and data from external data suppliers and consultants and will gradually be phased out once reports from the companies are available. The below statement of the proportion of environmentally sustainable investments is therefore not considering the EU’s technical screening criteria as companies are not at present reporting how they are complying with this.

The Low-risk fund and High-risk fund’s share of investments aligned with the EU’s environmental taxonomy
  Estimated for the EU’s environmental targets 1-6
Low-risk fund 1.7 %
High-risk fund 4.2 %
Note: The figures were calculated on 31/12/21.
Note: The taxonomy regulation defines six climate and environmental targets that economic activities can significantly contribute to in order to be classified as climate and environmentally sustainable. 1. Climate change mitigation 2. Climate change adaptation 3. Sustainable use and protection of water and marine resources 4. Transition to a circular economy 5. Pollution prevention and control 6. Protection and restoration of biodiversity and ecosystems.

Source: 
MSCI and analyses made by PFA and/or external consultants.

The “do no significant harm” principle applies only to those investments underlying the financial product that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of this financial product do not take into account the EU criteria for environmentally sustainable economic activities.

For example, this means that the High-risk fund, which has a 4,2 % proportion of sustainable investments, pursuant to the EU’s taxonomy regulation, may well have a larger proportion of sustainable investments, but the remaining investments do not meet all of the criteria for being included in the statement of environmentally sustainable investments under the EU’s environmental taxonomy regulation.
 

    

Categorisation according to the EU’s Sustainable Finance Disclosure Regulation (SFDR) 
The Low-risk fund and High-risk fund are both categorised pursuant to Article 8 as partially sustainable products in terms of the EU regulation on sustainability‐related disclosures in the financial services sector (SFDR).

The Climate Plus Low-risk fund and Climate Plus High-risk fund

PFA Climate Plus Low-risk fund and Climate Plus High-risk fund are savings options in PFA Optional for customers who want to focus more on climate-focused investments.

The Climate Plus Low-risk fund and the Climate Plus High-risk fund are savings products that, among other things, promote environmental and social characteristics. 

Among other things, this is done by the products having a strong focus on climate issues. PFA continually monitors whether the companies in the products comply with international norms or conventions for areas such as environmental protection, labour rights and human rights and exercising active ownership via voting and corporate dialogues and by excluding specific companies and countries. In the PFA Climate Plus funds, the energy sector is also excluded to not invest in the extraction of fossil fuels.
The Climate Plus Low-risk fund contributes to the EU’s climate targets by, among other things, investing in green bonds and properties that are built/renovated based on sustainable standards and by making direct investments in renewable energy infrastructure. 


 
The Climate Plus High-risk fund contributes to the EU’s climate targets by, among other things, investing in companies that supply solutions that stabilise and reduce greenhouse gas emissions and/or reduce or prevent negative impacts from current or expected climate changes. In addition, investment is also made in leading companies working with the green transition and companies that are focused on having a carbon footprint (including targets) that is compatible with keeping global temperature increases below a maximum of 2 degrees. 

 

Environmentally sustainable investments
The proportion of the Climate Plus Low-risk fund’s and Climate Plus High-risk fund’s environmental sustainability is assessed based on whether the investments’ economic activity contribute to one or more of the EU’s climate targets, whether they do not have a significantly negative impact on the EU’s climate targets and whether they operate in accordance with the OECD’s guidelines for multinational companies and the UN’s guiding principles for the private sector and human rights. 

Read more

The calculation of the product’s proportion of environmentally sustainable investments pursuant to the EU taxonomy regulation is presented in the table below. There is only very limited data available on the parameter of environmental sustainability, as companies have only been obliged to report on this, pursuant to the EU’s taxonomy regulation, from 1 January 2023. The proportion of environmental sustainability is therefore based on estimates. The estimates are based on assessments and data from external data suppliers and consultants and will gradually be phased out once reports from the companies are available. The below statement of the proportion of environmentally sustainable investments is therefore not considering the EU’s technical screening criteria as companies are not at present reporting how they are complying with this.

The Climate Plus Low-risk fund and Climate Plus High-risk fund’s proportion of investments aligned with the EU’s environmental taxonomy.
  Estimated for the EU’s environmental targets 1-6
Climate Plus Low-risk fund 4.1 %
Climate Plus High-risk fund 8.6 %
Note: The figures were calculated on 31/12/21.
Note: The taxonomy regulation defines six climate and environmental targets that economic activities can significantly contribute to in order to be classified as climate and environmentally sustainable. 1. Climate change mitigation 2. Climate change adaptation 3. Sustainable use and protection of water and marine resources 4. Transition to a circular economy 5. Pollution prevention and control 6. Protection and restoration of biodiversity and ecosystems.
Source: MSCI and analyses made by PFA and/or external consultants.
 
In the Climate Plus Low-risk fund, investment is also made in green bonds, but these have not yet been included in the proportion of environmentally sustainable investments. The work on achieving this continues. The proportion of green bonds as at 29/10/21 amount to 38 % in the Climate Plus Low-risk fund.

The “do no significant harm” principle applies only to those investments underlying the financial product that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of this financial product do not take into account the EU criteria for environmentally sustainable economic activities.

For example, this means that the Climate Plus High-risk fund, which has an 8,6 % proportion of sustainable investments, pursuant to the EU’s taxonomy regulation, may well have a larger proportion of sustainable investments, but the remaining investments do not meet all of the criteria for being included in the statement of environmentally sustainable investments under the EU’s environmental taxonomy regulation.

    

Categorisation according to the EU’s Sustainable Finance Disclosure Regulation (SFDR)
The Climate Plus Low-risk fund and the Climate Plus High-risk fund are both categorised pursuant to Article 8 as partially sustainable products in terms of the EU regulation on sustainability‐related disclosures in the financial services sector (SFDR).