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If, Mandatum Life excluding Wealth Management, and Sampo plc
The parent company Sampo plc and its two wholly owned insurance subsidiaries, If and Mandatum Life, have a common group-wide infrastructure for investment management, as well as for performance and risk reporting, which facilitates simultaneous company and group-level reporting. These create cost efficiencies in investment activities and also enable group-wide monitoring of portfolios.
Sampo Group's Chief Investment Officer is responsible for managing investments according to the investment policies prepared by If and Mandatum Life and approved by the companies' Boards of Directors. This excludes Mandatum Life's investments covering unit-linked policies, which are presented in the section Mandatum Life Wealth Management. Sampo prefers simple matured instruments and transparency. Hence, most of the investments are in fixed income securities and listed equities, which are tradable and subject to daily mark-to-market valuation.
Sampo's investment philosophy is to invest directly in individual companies' shares and debt instruments. These companies are carefully studied before any investments are made, and hence environmental, social, and governance issues are considered in parallel with other factors affecting the risk/return ratio of separate investments. At the moment, Sampo plc, If, and Mandatum Life do not have an ESG strategy or ESG investment guidelines that would, for example, exclude some business areas or companies outside the scope of investment opportunities, or earmark funds for sustainable investments, like green bonds.
Sampo believes that ESG issues have an impact on the long-term performance, risks, and value of all companies. Hence, taking these issues into consideration in the investment process is an important instrument to improve the risk-return profile of investments, and it is a critical success factor of investment activities, especially in the long-run. During 2018, Sampo will develop reports classifying assets by their ESG scores (or ratings) to enhance the internal monitoring of ESG issues and make external reporting more transparent from an ESG perspective.
Sampo's activity regarding its ownership is reflected through actions. If Sampo's positive view about a company that Sampo has invested in changes, Sampo does not make new investments in the company and investments already in the portfolio may be sold over time.
Further information on Sampo Group's investment management can be found in the Sampo Group Annual Report 2017 (Risk Management).