Stockholm (HedgeNordic) – Danish fixed-income fund boutique CABA Capital has become a signatory of the UN Principles for Responsible Investment (PRI), thereby affirming its commitment to promoting environmental, social and governance (ESG) factors in its investment activities. CABA Capital currently runs two hedge fund vehicles with a little over DKK 1 billion in assets under management.
“As we progress on our sustainability journey, we are delighted to share that CABA Capital has officially become a signatory of the UN Principles for Responsible Investment (PRI),” announces Mette Østerbye Vejen (pictured right), CEO and co-founder of CABA Capital. “The PRI is globally recognized as the primary advocate for responsible investment, and as CABA Capital continues to grow, we are thrilled to affirm our commitment to these principles.”
“As we progress on our sustainability journey, we are delighted to share that CABA Capital has officially become a signatory of the UN Principles for Responsible Investment (PRI).”
As lenders of capital through corporate and government bonds, fixed-income investors can incorporate ESG factors into their strategies by selecting between or combining integration, screening and thematic approaches. “At CABA Capital, we share the belief that an economically efficient and sustainable financial system is necessity for long-term value creation and that such a system will reward long-term, responsible investment and benefit the environment and society as a whole,” says Mette Østerbye Vejen. “The Principles will give us valuable tools to further integrate responsibility and sustainability in our company.”
When organizations become PRI signatories, they agree to follow the United Nations-backed six principles for responsible investment, as well as agree to mandatory reporting on their responsible investment activities. CABA Capital currently manages two hedge fund vehicles, its flagship fund CABA Hedge launched in mid-2017 and the younger CABA Flex, which seeks to capitalize on elevated spreads between Scandinavian mortgage bonds and government bonds. Structured in a three-year wrapper, CABA Flex is designed to be liquidated at the end of 2025 after realizing the returns from its portfolio of non-callable Scandinavian bonds.
