Corporate bonds

​AkademikerPension drops €269 million of fossil fuel corporate bonds | News

Denmark’s AkademikerPension has announced it is selling DKK 2 billion (€269 million) worth of oil and gas bonds issued by fossil fuel companies including Petroleos Mexicanos, Gazprom, Qatar Energy, Petrobras and SouthWestern Energy – after selling the shares of these companies.

The 20.1 billion euro pension fund, which mainly covers upper secondary teachers, said that since it started selling shares in fossil companies that extract oil, coal, oil sands and gas in 2018, there had been a desire from both its members and internally to also sell its oil and gas bonds.

“The divestment of upstream fossil fuel-related corporate bonds must be completed by December 31 of this year,” he said in a statement released today.

So far, AkademikerPension said, there had been yield-related issues surrounding a sale of the bonds, but this analytical work led by its chief investment officer Anders Schelde had shown that the divestment would not hurt its returns. wallet.

Janne Gleerup, chairman of AkademikerPension, said the board was “very proud” to be able to announce the divestment from oil and gas bonds.

“It’s something we’ve wanted for a long time, but it’s been difficult and we’ve had to consider many factors, including the potential impact on future investment returns,” she said.

“New solutions and market developments” have now changed the previous conclusion about the negative effect of such divestment, the pension fund said.

Schelde said, “We can see a trend that fossil fuel bonds, like fossil fuel stocks, are starting to price in the risks of locked-in assets even in the last year with performing energy assets, and we think that this could be the start of new headwinds for these links for years to come.

AkademikerPension said the divestment would contribute to a significant decrease in the carbon footprint of its portfolio.

The pension fund announced three days ago that it had excluded Hungarian airline Wizz Air from its investment universe, saying it had lost patience with a commitment process after the company refused to several times to recognize employees’ freedom of association and the right to conclude collective bargaining agreements in several countries.

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