VALUE FOR GENERATIONSSustainable investments in global equities

SUSTAINABLE INVESTMENTS IN

GLOBAL EQUITIES

SDG Invest is an investment fund offering you the possibility to obtain

attractive returns by investing in sustainable companies. The invest-

ment fund invests in top financial performing companies worldwide that

address the United Nations’ Sustainable Development Goals (SDGs).

SDG Invest’s guiding principle is that responsible and sustainable compa-

nies are both the future and the most economically advisable investments

you can make. We believe that we are all responsible for the future and

the planet we are leaving as a legacy for the next generations, and that

both people and institutional investors will increasingly seek investments

in companies who are run in a sustainable and visionary manner.

We will start from a position of significant impact by investing in

companies that operate sustainably.

WHAT IS SDG?

SDG is an acronym for Sustainable

Development Goals – a set of 17

goals developed by the United Nati-

ons (UN) for the purpose of securing

a sustainable future for our planet

and the generations to come.

With the UN as the driving force, the

17 goals were endorsed by all 193

UN member states in September

2015. The SDGs are supported by

targets and indicators for compa-

nies, institutions and states to use as

guidance in the quest for achieving a

sustainable world by 2030.

The SDGs are also important to

individuals, since it is expected that

consumer and investor behaviour

will develop towards favouring

companies with sustainable values

and responsible behaviour. Indivi-

duals will increasingly make active

investments and buy products from

sustainable companies, and demand

that pension and other savings are

invested and managed in a respon-

sible and sustainable manner.

It is with these considerations in

mind that we have founded SDG

Invest, as sustainable behaviour

and economic value generation can

easily be combined.

The 193 UN member states have developed 17 Sustainable development

goals for a sustainable future

SDG Invest was founded by Stockrate Asset Management and SDGlead, and is the first investment fund which actively assesses the ability of companies to combine financial performance and sustai-nable behaviour.

FINANCIAL SELECTIONFor many years, StockRate Asset Management has rated

global companies. From among more than 65,000 listed

companies in more than 150 countries, StockRate selects

the most financially viable companies, using a unique

investment philosophy. These are companies with a

strong earnings history, good financial strength and high

economic stability. At this stage, financial considerations

are the basis for the selection or elimination of companies.

THE SELECTION OF COMPANIES FOR SDG INVEST

65,000 globally listed companies

Screening and rating of financial performance

and sustainable behaviour

Portfolio of 50 – 100 companies

WE ARE AIMING FOR ATTRACTIVE RETURNS – BUT NOT AT ALL COSTS

At SDG Invest we strive to deliver attractive returns for our inve-stors in a responsible manner. Investments are only made in the World’s top financial performers who act responsibly, sustainably and lead in their industries. At SDG Invest we believe the combi-nation of financial and sustainable performance will deliver the best long-term return.

Our investment model is strengthened by the tendency of consu-mers and investors to seek out companies who have integrated sustainability into their business models.

Over the past 10 years, StockRate’s approach has created

attractive and stable returns above market level. This

model has a proven track record.

StockRate has a database of more than 65,000 com-

panies from around the World, containing data such as

historical accounting information for the last 25 years.

This historical data shows the company’s financial history,

which is the fundamental foundation for an assessment

of the company’s future earnings potential.

In order to be considered for selection, companies must

have a long-term strategy and not be focused solely on

short-term goals. This must be firmly rooted in the entire

management philosophy of the company. We do not

seek to achieve quick gains with short-term investments,

but rather focus on creating a good, stable, long-term

return while minimizing the risk.

ESG SCREENING The next step in the selection process is the selection

of sustainable companies. In this part of the process we

exclude companies who do not operate within sectors

we define as being long term responsible. We discard

companies who operate within sectors such as weapon

manufacturing and gambling. This part of the selection

process resembles a classic ESG (Environmental, Social,

Governance) screening and is based on the 10 principles

of the UN Global Compact.

SUSTAINABILITY SCORINGLastly, we select those companies which proactively

address global challenges or which have developed

a strategy for integrating the SDGs into their business

model. The selection is done with the application of the

Sustainability Scorecard, developed specifically for SDG

Invest.

The companies are scored on 48 parameters which

include sustainability considerations such as responsible

governance, sustainable innovation, and proactive long-

term business models that address global challenges

and the SDGs.

WHAT IS THE SUSTAINABILITY SCORECARD?The SDG Invest Sustainability Scorecard is an

in-depth analysis based on our knowledge of

long-term and sustainable business management.

The Scorecard rates companies’ performance

within leadership, sustainability and governance.

Most of the selected companies are traditional corpo-

rations that have understood the need to adapt their

business models and processes in a more sustainable

direction and become proactive contributors to the

urgent transformation of our World. Others are corpora-

tions who are uniquely addressing sustainability issues,

such as renewable energy, food shortage, water, educa-

tion, and sanitation.

The SDG Sustainability Scorecard is a comprehensive

analysis based on our in-depth expertise and knowledge

of long-term and sustainable business management. A

score is calculated based on each company’s perfor-

mance within the categories leadership, sustainability

and governance. It is a prospective model compared to

SUSTAINABILITY SCREENING

ESG screening

Exclusion of companies operating in certain industries

SUSTAINABILITY SCORING Sustainability Scorecard

Screening and analysis of companies’ approach to • Leadership• Sustainability • Governance

PORTFOLIO

Portfolio comprising 50-100

of the World’s strongest listed

companies, acting responsibly to address global challenges and/or having a strategy on how they will

contribute to achieving the SDGs.

THE SELECTION PROCESS

FINANCIAL SELECTION

The StockRate model

• Strong earnings history• High financial

strength• High economic stability

regular defensive ESG screening, as it considers how

companies work to generate value for future generations.

THE FINAL PORTFOLIOThe result of our 3-step selection process is a portfolio

comprising 50-100 of the World’s strongest listed com-

panies, acting responsibly to address global challenges

and/or having a strategy on how they will contribute to

achieving the SDGs.

SDG Invest is the first investment fund actively assessing

the potential of companies to deliver strong economic

performances while proactively working to address

global issues and thereby sustain an environment they

can continue to be profitable in.

FOOD SECURITY By 2050, our planet will need to feed

9 billion people. This will require

investments in innovative food

production and a decrease in global

food waste.

INCLUSIVE ECONOMIC GROWTH The rising inequality between and

within countries is increasingly

leading to social and political unrest

with the potential to destabilise the

global economy in the long run.

EMPLOYMENT By 2020 alone, there will be a need

to create 500 million new jobs

globally for people outside of the job

market. At the same time, compa-

nies find it increasingly difficult to

find employees with the right skill

sets.

CLIMATE CHANGE Investments and innovative solutions

are required to secure the 2-degree

Celsius target agreed upon in the

Paris Agreement.

A STABLE FINANCIAL SECTOR AND ACCESS TO CAPITAL It is predicted that by 2020, 2 billion

people will lack access to a bank

account, which is a critical issue in

tackling the fight against poverty.

TECHNOLOGICAL DEVELOPMENTS 43 % of the Earth’s population are

currently connected to the internet.

But how do we secure sustainable

technological innovations while

maintaining our right to privacy?

GENDER EQUALITY With the current pace of change, it

will take 118 years before the gender

pay gap between men and women is

resolved.

EXAMPLES OF GLOBAL CHALLENGES

GLOBAL TRADE Since the global financial crisis, we

have witnessed a move away from

multilateral trade agreements, and

towards more protectionist and bilat-

eral trade systems.

INVESTMENTS IN INFRA-STRUCTURE AND WELFARE There is currently a lack of long-term

investments to ensure infrastructure

and welfare systems are keeping

pace with other developments.

A SOUND GLOBAL HEALTH SYSTEMPopulation growth and new demo-

graphic developments (urbanisation

and aging populations) will put pres-

sure on the World’s current health

systems.

Source: World Economic Forum

Issues which the companies in SDG Invest actively address

THE SDGs ARE UNIVERSAL Consequently, they apply for both developing and industri-alised countries.

THE SDGs APPLY TO EVERYONE Governments, NGOs, com-panies and citizens are all responsible for achieving the 17 SDGs before 2030.

THE SDGs REQUIRE INVESTMENTS UN’s Conference on Trade and Development (UNCTAD) estimates that it will cost between 5-7 trillion USD annually to achieve the 17 SDGs by 2030.

THE SDGs ARE MEASURABLE The 17 SDGs are detailed in 169 targets and 232 indica-tors. These make it possible to measure how companies contribute.

WHO IS BEHIND SDG INVEST?

SDG Invest is founded by Stockrate Asset Management and SDGlead. The investment fund thereby draws on expertise and experience in selecting the strongest financial companies in the World as well as generating value through sustainable busi-ness innovations and responsi-ble business conduct.

The SDG Invest Sustainability Scorecard and associated pro-cesses are subject to an annual review by the accountancy firm PwC under the attestation stan-dard ISAE 3000.

Stockrate Asset Management is an independent Danish asset management company, which manages large portfolios and advises the investment fund StockRate Invest.

SDGlead advises companies on sustainability, business ethics and value creation through responsible and sustainable business practices.

Camilla BredholtFounder of Doctors Without Borders (Denmark)

BOARD OF DIRECTORS

INVESTMENT COMMITTEE

Karin VerlandChairmanSecretary General of DIGNITY

Christian SagildFormer CEO of Topdanmark

Kim HøibyeLawyer and Partner in Njord Law Firm

Barbara Scheel AgersnapCEO of Copenhagen Malmö Port

Kristian KjerHead of Asset Management and Partner, Stockrate Asset Management

Bjarne JensenCEO and Founder, Stockrate Asset Management

Anne-Louise Thon SchurPartner and Founder, SDGlead

CONSTRUCTIONSDG Invest is established as an investment fund cate-

gorized as an alternative investment fund (AIF), which is

regulated by the ”Alternative Investment Fund Managers

Directive”.

SDG Invest is administered by StockRate Forvaltning,

which is supervised by the Danish Financial Supervisory

Authority.

As an investor, you buy shares in the investment fund.

These are stored on deposit in your bank account and

are recorded in the VP Securities, like any other securities

investment.

The Scandinavian Enskilda Bank (SEB) is the depositary.

This means that the investment fund’s values are stored

in SEB. Also, SEB issues the investment fund’s shares.

VALUATIONOnce a day, the net asset value of the investment fund

is calculated, so that you always know the value of your

investment.

The net asset value is stated on the investment fund’s

website, www.sdginvest.dk.

LOW COSTSAs an investor, you pay no commission fee, and there are

no hidden costs or fees. The total cost is 1.35% per year.

HOW TO INVEST IN SDG INVESTYou can invest in SDG Invest by contacting StockRate

Asset Management, your own bank or your investment

broker.

You will find the subscription form on the investment

fund’s website, www.sdginvest.dk.

The shares are issued in increments of DKK 10,000.

INVESTING IN SDG INVEST

We predict that financially strong companies addressing the SDGs will be preferred by both customers and investors and will therefore

outperform comparable companies who do less or nothing.

Read more about SDG Invest at www.sdginvest.dk

Investment advisor

StockRate Asset Management A/S

Sdr. Jernbanevej 18D

DK 3400 Hillerød

Phone: +45 3833 7575

E-mail: info@stockrate.dk

www.stockrate.dk

SDG screening

SDGlead ApS

Hellerupvej 8, Gaardhuset

DK 2900 Hellerup

Phone: +45 5051 7630

E-mail: info@sdglead.com

www.sdglead.com

Administration

StockRate Forvaltning

Sdr. Jernbanevej 18D

DK 3400 Hillerød

Phone: +45 3833 7575

E-mail: info@stockrateforvaltning.dk

www.stockrate.dk/forvaltning

VALUE FOR GENERATIONSSustainable investments in global equities