Södra Pension Foundation

The pension foundation has chosen not to adopt each of the six principles for shareholder engagement described in Section 10e of Tryggandelagen, nor to report on their application as outlined in Section 10f.

This decision is based on the fact that the foundation’s equity exposure primarily consists of investment funds, meaning that the fund managers (regulated under the Securities Market Act 2007:528) are responsible for the investments and for applying the principles of shareholder engagement. Furthermore, the foundation has no direct influence over the underlying companies.

The foundation does not report on voting activities but refers instead to the fund managers’ respective fund rules, where information can be obtained:

• Brock Milton Capital AB, BMC Global Select Fund
• Coeli AB, Coeli Nordic Corporate Bond
• Handelsbanken Fonder AB, SHB Global Small Cap Index Criteria
• Handelsbanken Fonder AB, SHB Global Index Criteria
• Handelsbanken Fonder AB, SHB Sweden Index Criteria
• Captor Fund Management AB, Captor Iris Bond
• Carnegie Fonder AB, Carnegie Corporate Bond
• ODIN Forvaltning AS, ODIN Small Cap
• CAAM Fund Services AB, Carnegie Private Equity Solution AB

Investment Guidelines of the Pension Foundation

The Board of the Pension Foundation has adopted investment guidelines aimed at achieving a strong expected return relative to a predefined risk profile. The foundation invests in various asset classes with diversified expected returns, associated risks, and correlation with other assets. By investing in equities and equity funds, the foundation aims to achieve a more efficient portfolio with higher risk-adjusted returns over the medium to long term.

The strategy is designed to safeguard pension commitments over the long term. The foundation invests in directly held equities and securities funds traded on regulated markets within the EEA. The medium- to long-term strategy is to maintain a balanced equity allocation in line with current risk and expected return.

Evaluation of each manager’s performance is conducted using a quantitative and qualitative model, taking actual compensation into account. This evaluation is updated continuously throughout the year.

No Consideration of Adverse Sustainability Impacts

The foundation does not consider the adverse impacts of investment decisions on sustainability factors as defined in Article 4.1(b) of the EU Sustainable Finance Disclosure Regulation (SFDR). The foundation deems such reporting to be disproportionately burdensome given its size, nature, scope, and complexity.

Nevertheless, the foundation seeks to minimize negative sustainability impacts through its commitment to responsible investment, as defined in its ethical guidelines.

The foundation’s remuneration policy does not include incentives that would counteract the integration of sustainability risks in investment activities.