Stockholm (HedgeNordic) – Since its inception in mid-2009, the Rhenman healthcare fund has focused on investing in healthcare companies, which contribute to at least one of the UN Sustainable Development Goals following their official adoption early 2016. These companies provide products and services that promote growth in healthcare provision, drive advancements in medical treatments, and improve healthcare standards. Over the past year, the team at Rhenman & Partners has taken significant steps in formalizing and implementing its own ESG framework, tools, and processes. As a result, upon marking its 15th anniversary this May, the Rhenman healthcare fund has transitioned to become an Article 8 fund under the Sustainable Finance Disclosure Regulation (SFDR).
“Rhenman & Partners has – since the start – worked to invest in a long-term sustainable and responsible manner,” says Karin Hjertén (pictured), who now serves as the Head of Sustainability at Rhenman & Partners alongside her role as Head of Communications. “Transitioning to Article 8 under SFDR does not imply a change in the overall investment strategy or investment philosophy,” she stresses. “It is rather the result of our work over the past year to leverage the portfolio managers’ deep sector and sub-sector knowledge and expertise to formalize and implement our own ESG framework, tools, and processes to support the investment team in executing the strategy.”
“Rhenman & Partners has – since the start – worked to invest in a long-term sustainable and responsible manner. Transitioning to Article 8 under SFDR does not imply a change in the overall investment strategy or investment philosophy.”
Karin Hjertén, Head of Communications and Head of Sustainability at Rhenman & Partners.
Moreover, this transition to Article 8 “also means that we will become even more transparent about our ESG work and how we promote positive social characteristics,” adds Hjertén. The Rhenman healthcare fund runs a long/short thematic equity hedge fund strategy exclusively focusing on the healthcare sector. While the long-biased equity hedge fund promotes social attributes, sustainable investments are not its primary focus, hence its classification as an Article 8 fund rather than an Article 9 fund. Under SFDR regulations, EU-marketed funds fall into one of three categories: “dark green” Article 9 funds, which prioritize sustainability or decarbonization; “light green” Article 8 funds, which advance one or more environmental, social, and governance objectives; and Article 6 funds, which lack specific ESG-related objectives.
“The companies in the portfolio either offer products or services or significantly invest in R&D that we believe contribute to achieving SDG 3: Good health and well-being.”
Hugo Schmidt, Portfolio Manager at Rhenman & Partners.
With 15 years of experience investing in the global healthcare industry, “the Rhenman healthcare fund’s sole focus is to invest in companies whose technology, research, services, etc., lay the foundation for the next generation of healthcare,” explains Hugo Schmidt, one of the three portfolio managers supporting founder and CIO Henrik Rhenman in managing the portfolio. “The companies in the portfolio either offer products or services or significantly invest in R&D that we believe contribute to achieving SDG 3: Good health and well-being,” emphasizes Schmidt. The fund’s focus, therefore, directly aligns with Sustainable Development Goal 3 (SDG 3), which aims to ensure healthy lives and promote well-being for all.
