Lynx Asset Management AB has a commitment towards its clients, employees and the society as a whole to act as a responsible investor. We aim to be transparent regarding the opportunities and challenges that an implementation of responsible investing has for our strategies given our investment approach. Lynx Asset Management has adopted a policy that outlines how we apply sustainability principles at a firm level and in our investment process. In our opinion, a responsible investor supports the development of sustainable financial markets and long-term market stability in general. A responsible investor understands the importance of continuous learning and development when it comes to sustainability and responsible investments.
Lynx manages quantitative strategies using a fully systematic investment process. Investments are made in futures contracts on equity indices, fixed income, currencies and commodities, and in currency forwards. Lynx attempts to contribute to the sustainability of financial markets by limiting our impact on market prices. We choose to trade in only the most liquid markets and try to ensure that our positions and trade volumes are small in relation to the daily volumes in those respective markets. We do not trade in markets with insufficient liquidity so as not to materially affect the prices of the underlying assets.
Lynx’s Execution Research team is responsible for the algorithms used in our trading process. One of the main objectives of these algorithms is to avoid impacting market prices when we trade. Execution Research gathers data on each order, focusing on market liquidity and trade volumes, and reports to the Investment Committee with their findings.
Lynx´s funds trade futures and forwards contracts, and since there are no direct holdings in single stocks, corporate bonds, etc., no screening is performed based on environmental, social and governance (ESG) factors. Further, the instruments traded do not entitle Lynx to be an active owner nor influence any company or other entity in any way (for example, by exercising voting rights.)
Lynx Asset Management AB is a member of the Standards Board for Alternative Investments (SBAI, formerly HFSB). SBAI develops standards for best practice for the alternatives industry in relation to e.g. governance, transparency, valuation and risk management. SBAI has defined a “comply or explain regime”, and Lynx Asset Management AB reports to SBAI annually on how the company complies with its standards.
Lynx Asset Management AB is also a signatory of UN PRI’s (United Nations Principles for Responsible Investment) six principles for responsible investment. We report annually to UN PRI on how our work with responsible investments is proceeding.
Hållbarhetsprofilen (see tab under Sustainability) is a standardized report designed by the Swedish fund industry to comply with the Swedish regulator´s demand for reporting on sustainability.