B Corps making a splash at Slush

What an afternoon, and what an evening party! 

On Friday 22nd of November, we organized ‘To B or not to B’ seminar to promote B Corporation certification among visitors of Slush –  the leading tech and start-up gathering in the world. 

To B or not to B

We were happy to enlist support from Goodwings, Aliter Networks, Kraft, and Ramborn Cider sharing their B Corp stories. We met entrepreneurs and some larger companies in Finland interested in B Corp and trying out the B Corp impact self-assessment tool.

We became the first Finnish B Corp in 2017. B Corps are known for integrating a positive impact on customers, communities, workers, and the environment through good governance. They are for-profit but with a bigger purpose. The pioneers of B Corps are Ben & Jerry’s and Patagonia, but last month also Burton Snowboarding and the Guardian the media group joined the global movement of over 3,000 companies making a splash.

Now there are a dozen Finnish companies that we know are interested in becoming one. We welcome this because this is a network we trust. We use other B Corps’ products and services because we know the providers to be good. And this, surely the people who came to the after-party at our HQ can testify. 

The B Corp story in Finland has just begun. We want to support the growth of the B Corp community here by organizing monthly B Nights where anyone on their B journey can meet and chat with people with similar ambition. We open up our HQ at Kaapelitehdas as a venue. 

The first B night will be on Wednesday 11 December. We look forward to more B Corps in the Nordics. Who knows, your company may be the next  Patagonias or Ben & Jerry, promoting the idea of balancing purpose with profit.

Christian from Goodwings

Christian Møller-Horst from Goodwings explains how you can save in travel expenses while donating to charities.

Maxime from Lombard & Odier and Tommi from HCP

HCP’s Tommi Kemppainen pulled another B Corp asset manager Maxime Lingjaerde from Lombard & Odier on stage.

Adie from Ramborn Cider

Adie Kaye and Ramborn Cider are working for reviving the culture of cidermaking and replanting traditional meadow orchards throughout Luxemburg.

Steffen from B Corp

Steffen Kallehauge from B Corp walks the audience through B Impact Assesment.

Odette from Aliter

Aliter Networks’ goal is to have half a million IT products reused by 2025, explains Odette van Zijdveld.

Catherine from Kraft

Catherine Stenholm and Kraft Group are making a change in the professional Swedish skin- and haircare distribution segment.

 

HCP Focus är den mest topprankade aktie-hedgefonden i världen

Placeringsfonden HCP Focus har rankats som världens tredje bästa placeringsfond i sin kategori (long-only aktie hedgefonder) av konsultbolaget BarclayHedge.

Se: Barclay managed funds report 2Q 19, sidan 6

Barclay Managed Funds Report

Barclay Managed Funds Report (nedan: “Rapporten”) publiceras kvartalsvis av BarclayHedge, ett Amerikanskt konsultbolag som publicerar data om internationella hedge och CTA –fonder. (OBS. BarclayHedge är inte kopplat till Barclays bank.) Den färskaste Rapporten är för 2Q 2019, vilken publicerades 3.9.2019.

Rapporten innehåller ranking-listor på fonder i 21 olika kategorier. I listorna är de 10 bästa fonderna i respektive kategori rankade enligt 3 eller 5 års avkastning (beroende på kategorin).

Kvalificerade för upptagning i Rapporten är fonder som fyller minimikraven gällande avkastningshistoria (åtminstone 3 år) samt storlek (klientmedel (”AUM”) åtminstone 10 $M).

Totalt 4.710  fonder kvalificerade för upptagning i den färskaste Rapporten, vilket betyder att Rapporten täcker merparten av världens hedgefonder.

HCP Focus –fonden (nedan: ”Fonden”) är en global, long-only equity hedge-fond som förvaltas av det Finska fondbolaget Helsinki Capital Partners (nedan: “HCP”). Fonden är en Finsk specialplaceringsfond, vilka enligt internationell taxonomi kategoriseras som hedgefonder.

I Rapporten hittas HCP Focus under kategorin “Equity Long Only”. Denna kategori innehåller sammanlagt 363 fonder.

Avkastning och ranking

Under treårsperioden 1.7.2016 – 30.6.2019 avkastade Fonden i genomsnitt 22,79 % per annum. Detta motsvarar en totalavkastning på 85 %.

Fonden är rankad till nummer 3 av totalt 363 fonder, vilket betyder att den avkastat bättre än 99 % av alla konkurrenter.

Jämn toppavakastning

HCP Focus –fonden grundades 30.11.2012. Fonden har således varit kvalificerad för listning sedan 1Q 2016 -rapporten. Den senast publicerade Rapporten är 2Q 2019. Fonden har således varit kvalificerad för listning hittills sammanlagt 14 gånger.

Under perioden 1.1.2016 – 30.6.2019 lyckades HCP Focus nå Top-10 enligt följande:

  • 1Q 2016 – rankad: 8
  • 2Q 2016 – rankad: 4
  • 3Q 2016 – rankad: 5
  • 4Q 2016 – (inte bland Top-10)
  • 1Q 2017 – rankad: 7
  • 2Q 2017 – rankad: 5
  • 3Q 2017 – rankad: 7
  • 4Q 2017 – rankad: 8
  • 1Q 2018 – (inte bland Top-10)
  • 2Q 2018 – rankad: 5
  • 3Q 2018 – rankad: 3
  • 4Q 2018 – (inte bland Top-10)
  • 1Q 2019 – rankad: 1
  • 2Q 2019 – rankad: 3

Under denna period bestående av 14 kvartal lyckades HCP Focus nå Top-10 sammanlagt 11 gånger. Ingen annan fond lyckades nå Top-10 -listan lika många gånger!

HCP Focus vs konkurrenter

Annan intressant statistik ur BarclayHedge “Equity Long Only” Top-10 –listan.

Under perioden 1.1.2016 – 30.6.2019:

  • totalt 59 fonder lyckades nå Top-10 –listan åtminstone en gång.
  • mindre än hälften (28/59 fonder, eller 47 %) av dessa fonder lyckades med det mera än en gång.
  • mindre än en av fyra (14/59 fonder, eller 24 %) lyckades med det mera än två gånger.
  • cirka en av tio (7/59 fonder, eller 12 %) lyckades med det mera än 5 gånger.
  • bara en enda fond – HCP Focus – lyckades nå Top-10 -listan mera än 8 gånger!

(Denna statistik finns visualiserad i det bifogade dokumentet: “HCP Focus rankings Barclay managed funds report 2Q 19”.)

Alla tidigare Rapporter kan laddas här: https://www.barclayhedge.com/rankings-awards/barclay-managed-funds-report/

(Tjänsten är gratis, men förutsätter registrering)

För mera info vänligen kontakta Jo Iwasaki

Fonden är öppen för teckningar fyra gånger per år. Nästa teckningsdag är 30.9.19. Fondteckningar: https://www.hcp.fi/sv/fondteckning/

Ett urval färska artiklar om Fonden:

https://www.bloomberg.com/news/articles/2018-10-16/one-of-world-s-top-15-fund-managers-reveals-his-next-top-picks

https://hedgenordic.com/2019/04/unorthodox-value-approach-from-hcp-focus/

 

Using business to fix our future

We attended the fourth European B Corp Summit – the gathering of purpose-driven businesses – on the 23rd and 24th of September. Almost 700 people from 23 countries attended two days of inspiring panel discussions, workshops and networking opportunities in Amsterdam. The event was organized by the non-profit B Lab Europe which helped HCP get certified in 2017.This was the third time we took part since becoming a B Corp. We could see that the B Corp network is becoming bigger and their message of balancing purpose and profit louder.

#LeadtheBeat

Businesses have a responsibility to work together to build a more inclusive economy and B Corps are at the forefront of this movement.  We are proud to be a part of this movement as the first B certified company in Finland.

Messages from the B Lab and other B Corps

Jay Coen Gilbert, co-founder of B Lab and the B Corp movement declared: “We don’t have much time left to make sure we can preserve our home not just for us but for future generations. […] Incremental change is insufficient, individual change is insufficient. We need systemic change”.

A systemic change may be hard, but we have seen some promising initiatives lately. In September, the Financial Times declared it’s time to reset capitalism. They are examining a model of free enterprise capitalism that does not focus on maximizing shareholder value under the heading of the ‘New Agenda.’  

The Business Roundtable, an association of CEOs of leading US companies including Apple and JP Morgan Chase, announced in the New York Times that they are committed to lead for the benefit of all stakeholders.

This is also our mission and the mission of the B Corp movement. But what we need now is action beyond nice words. We need to walk the walk – as it appeared in the response by a group of B Corps to the above NYT piece.

B Corp letter to the Business Roundtable

Some of our B Corp friends like Patagonia and Ben & Jerry’s have hit the streets to support climate strikes. “We need to stand out because with more heads, it will become easier to build a more sustainable future. This is the power of the B Corp community,” stated Anuradha Chugh, Managing Director at Ben & Jerry’s.

Some other B Corps work within their line of business.

What is the role of finance?

In the summit, we were happy to see many other financial service providers that have joined the B Corp movement. Some are seeking to build a better future by directly financing companies and innovative solutions for a more sustainable tomorrow.

We were especially pleased to meet people from a Swiss private bank, Lombard Odier, that got B certified earlier this year. They have been in business for more than 200 years, and surely know something about sustainability in finance.

Their Head of Corporate Sustainability, Ebba Lepage stated that: “We see our role as a thought leader, leading the change. […] We invest in sustainable business models because we believe they do good for the world and have good business models that will last.”

At HCP, we want to be a part of a more sustainable future by leading the change we want to see within the financial service industry.

“We believe HCP’s way of operating as a business can demonstrate how an asset manager can be responsible. It is not just about launching green bonds and ESG funds. We emphasize having a high standard on governance and we disclose what we do – from how much tax contribution we make to the company’s pay structure. If we cannot be a responsible business ourselves, how could we preach others to be one,”  stated Jo Iwasaki from HCP. 

We would like to believe that we demonstrate to the world that the financial service industry can be a force for good.

Leading the beat of purpose-driven business 

We believe that the B Corp movement is one of those initiatives that carries a promise of a more sustainable tomorrow. We wish to encourage more business leaders to think about their mission and contribution to the wellbeing of the world by promoting the idea of B Corporation at Slush, that is, the leading tech start-up event in the Nordics.

We host an afternoon event on 22 November at Mesukeskus, attached to Slush but not within the main area, so you don’t need a Slush ticket to join us. At this event, we will have a presentation by B Lab, a couple of B Corps to share their experience of getting certified and what it brought to them, followed by a self-assessment session.

If you wish to know more or attend, email our investor relations at ir@hcp.fi.

We will follow this by a networking event (’HCP lounge & sauna’) back at the HCP office at Kaapelitehdas/Cable Factory, where we can continue discussions on the topic.

Telling HCP’s B Corp Story

B Corp Summit attendees taking a break in between workshops

At B Corp Summit in Amsterdam, I was asked what problems I face when telling my company’s story. In my work at Helsinki Capital Partners (HCP), I try to tell people that the way their financial service provider does business really matters. And most of the time nobody cares.

The financial sector has a bad reputation for a reason. It is known for incentives encouraging short-term thinking, irresponsible processes, and hierarchical management. In addition, financial products and services are often very complex, they carry hidden costs and they might not even be in the clients best interest.

This is a problem within the industry. How you treat your clients, workforce, and how you give back to the society are questions that have to be answered within any given company.

We have thought of these questions carefully, and our answer is not to be a prick.

Not being a prick in our line of business includes committing to transparency. It is self-evident for us that clients are told how much they pay both directly and indirectly to us for our service. We focus on the best interest of our client, which is why we have eliminated all short-term incentives, such as staff bonuses, from our company.

The #BCorp certification makes our business even more transparent. Moreover, it encourages us to consider our impact on all of our stakeholders.

We operate as a limited liability partnership, where all the permanent employees own a share of the company. They will prosper if the company will. On the other hand, if the company would go bust they would lose their money. This is the healthiest incentive for employers long-term thinking we can imagine.

The shareholders are important for a company. However, they are only one stakeholder group to take into account. This is as obvious to our company as it is to all of us as individuals. A life where you only value a high salary and fat dividends is a poor one. We want more!

Meeting people from other mission-driven companies is always inspiring. They are ready to #leadthebeat of human-faced capitalism, where businesses balance purpose and profit.

They care.

Thank you all who made it to #BCorpsummit2019! It was great to hear your stories and share ours.

 

Best for the World: Workers – HCP honored by B Lab

The asset management company Helsinki Capital Partners (HCP) has been honored by B Lab for its way of working, which takes into account unusually widely employees’ interests.

HCP is praised for its unusually small pay gaps between employees and for having all permanent employees own part of the company.

Communications and customer experience manager Miika Koskela bought a partnership stake in the company in spring after working at HCP for two and a half years.

”I invested in the opportunity to eat the fruits of my labor. Now that I own HCP shares, I am even more interested in the sustainability of the business and the value it creates for owners, employees, clients, and the society around us.”

CXM Miika Koskela

HCP is also honored for its low hierarchy and openness in the work community. All projects that go on in the company are logged into its intranet, which all employees have access to. Anybody in the company can start a project whose cost is less than 10,000 euros without a supervisor’s approval.

Employees are encouraged to manage themselves. Nobody’s working hours are supervised and remote work is always allowed

Pasi Havia, an HCP portfolio manager with a background in the IT sector has made use of remote working by having his office first in Spain and now in Estonia. He considers free working hours self-evident.

”If I dug ditches for a living, keeping track of working hours might make sense – in the IT sector, not so much. Bad code does not become better by throwing more hours at it. This applies to all knowledge work.”

Pasi Havia

Fund Manager Pasi Havia

In 2017, HCP was the first company in Finland to receive B Lab’s B Corporation corporate responsibility certificate. B Corporation companies are profit-seeking firms with a mission. They seek to take into account all stakeholder groups – not just the company’s owners.

”You might compare a company to an individual person. If the entire purpose of your existence is to make profits, your life is rather poor,” comments HCP’s CEO Tommi Kemppainen.

Tommi Kemppainen

CEO Tommi Kemppainen

B Lab, B Corp, and Best for Workers

The non-profit B Lab grants the B Corporation certificate to companies who meet extremely stringent environmental, societal, and governance criteria. The world has 3,000 B Corporations in 64 different countries and in 150 different branches of industry.

B Lab honors 10% of certified companies who take into account their employees and other stakeholder groups particularly well. HCP has already been named two years in a row as best for workers.

”Best for Workers honourees have an exceptional corporate culture, work environment, worker health and safety practices, ownership and compensation policies, and other employee-centric practices. Companies like HCP represent the kinds of impact-driven business strategies that are inclusive, regenerative, and delivers value to all stakeholders, not just shareholders,” comments Anthea Kelsick from B Lab.

The list of all honored companies: bcorporation.net/2019-best-for-the-world/

We Are Proud to Have Reached €100 Million in Assets Under Management in Our Own Unique Way

Here we are – we’ve just reached our first €100 million in assets under management (AUM). We aren’t the first firm to achieve this. But we are unique for having done it fairly and transparently to all our stakeholders.

Fairness to our clients

We have reached the €100 million AUM threshold with a transparent fee structure applicable to everyone. We have also returned all thinkable and unthinkable kickbacks to our clients (e.g. trailer fees, sales charges, and structuring fees). We have done it before Mifid II came into effect – since our inception in 2007, instead (read: HCP Initiative). We respect our clients and demonstrate it in the way we operate. We are grateful for your trust, now and ever.

The way we work

We are also transparent in our salary structure. The lowest salary of a permanent employee – excluding new partners – is only 35% lower than the one paid the most. We pay no bonuses.

We reward everyone committed to the company by making them an owner. Staff who have joined after the company was founded collectively own 38% of the company (if we include current employees who have been here since the day one, this goes up to 57%).

We own this company together. We have said that we respect everyone, and this extends to employees. This is important for us, because we want to create long-term value.

Best for the world

We want to show a positive example for how to operate in the financial services sector. We are one of the very few B Corp asset managers globally. If you are interested in how we have qualified for this prestigious certification, you can check out our B Corp profile.

This year the B Corp community saw another – and very significant – example. Lombard Odier, a long-established, and highly respected Swiss banking group, also received B Corp Certification. We are delighted that they have become part of our B Corp family – with its CHF 259 billion in AUM.

We might need the next 20 years before we reach our first €1 billion in assets under management at the current pace, and we are prepared for this long-term journey. We anticipate a possible recession, and for years already, we have accumulated a safety buffer. This is to make sure that we can ride out the waves even in the period of economic downturns.

We do our best to continue growing and to be part of this industry. This is important for the society around us and for our stakeholders engaged with us via our #HCPSPIRIT activity.

Let’s imagine what we do could together with €1 billion  under management. We’re already working to make this a reality.

Read more in our Sustainability Report 2018.

Our first ever company community meeting

”Everyone shades on!”

Limited liability companies are sophisticated platforms for different people and resources to work together for a shared goal. They have their roots for soon 700 years.
 
In addition to general meetings for shareholders (yhtiökokous) there is a need to also meet with all the people we work alongside. Therefore, last Thursday 6th of June we organised our first ever ”company community meeting” (or yhtiön yhteisökokous) to meet with all stakeholder groups as they are all important as are the shareholders!
 
This is us. Our identity is shaped by our clients, collaborators, and friends – past, present, and future. Huge thank you to all of you who made it!
 
This is #HCPSPIRIT
 
No one knows how a meeting like this should be structured. What we know is that it must have of all the stakeholder groups and it can not be a closed meeting between top executives and shareholders.
 
”We encourage all companies to find the courage to organize their first company community meeting that has people from all stakeholder groups!”
– CEO Tommi Kemppainen
 

#HCPSPIRIT artist Kuuhullu performs unplugged

CEO Tommi Kemppainen welcomes all HCP community members to his home

Campfire after the sunset

BarclayHedge: HCP Focus är världens bästa aktie-hedgefond

HCP Focus har rankats som världens bästa long-only aktie hedgefond av BarclayHedge

Se: Barclay managed funds report 1Q 19, sidan 6.

Rapporten

Barclay Managed Funds Report (nedan: “Rapporten”) publiceras kvartalsvis av BarclayHedge, ett Amerikanskt konsultbolag som publicerar data om internationella hedge och CTA –fonder. (OBS. BarclayHedge är inte kopplat till Barclays bank.)

Rapporten innehåller ranking-listor på fonder i 21 olika kategorier. I listorna är de 10 bästa fonderna i respektive kategori rankade enligt 3 års avkastning.

Kvalificerade för upptagning i Rapporten är fonder som fyller minimikraven gällande avkastningshistoria (åtminstone 3 år) samt storlek (klientmedel (”AUM”) åtminstone 10 $M).

Totalt 4.634  fonder kvalificerade för upptagning i den senast publicerade Rapporten, vilket betyder att Rapporten täcker merparten av världens hedgefonder.

HCP Focus –fonden (nedan: ”Fonden”) är en global, long-only equity hedge-fond som förvaltas av det Finska fondbolaget Helsinki Capital Partners (nedan: “HCP”). Fonden är en Finsk specialplaceringsfond, vilka enligt internationell taxonomi kategoriseras som hedgefonder.

I Rapporten hittas HCP Focus under kategorin “Equity Long Only”. Enligt den senast publicerade Rapporten (1Q 2019) innehåller denna kategori sammanlagt 338 fonder.

Jämn toppavakastning

HCP Focus –fonden grundades 30.11.2012. Fonden har således varit kvalificerad för listning sedan 1Q 2016 -rapporten. Den senast publicerade Rapporten är 1Q 2019. Fonden har således varit kvalificerad för listning hittills sammanlagt 13 gånger.

Under perioden 1.1.2016 – 31.3.2019 lyckades HCP Focus nå Top-10 enligt följande:

  • 1Q 2016 – rankad: 8
  • 2Q 2016 – rankad: 4
  • 3Q 2016 – rankad: 5
  • 4Q 2016 – (inte bland Top-10)
  • 1Q 2017 – rankad: 7
  • 2Q 2017 – rankad: 5
  • 3Q 2017 – rankad: 7
  • 4Q 2017 – rankad: 8
  • 1Q 2018 – (inte bland Top-10)
  • 2Q 2018 – rankad: 5
  • 3Q 2018 – rankad: 3
  • 4Q 2018 – (inte bland Top-10)
  • 1Q 2019 – rankad: 1

Under denna period bestående av 13 kvartal lyckades HCP Focus nå Top-10 sammanlagt 10 gånger. Ingen annan fond lyckades nå Top-10 -listan lika många gånger!

HCP Focus vs konkurrenter

Annan intressant statistik ur BarclayHedge “Equity Long Only” Top-10 –listan.

Under perioden 1.1.2016 – 31.3.2019:

  • totalt 55 fonder lyckades nå Top-10 –listan åtminstone en gång.
  • under hälften (26/55 fonder, eller 47 %) av dessa fonder lyckades med det mera än en gång.
  • cirka en fjärdedel (14/55 fonder, eller 25,5 %) lyckades med det mera än två gånger.
  • cirka en tiondel (6/55 fonder, eller 10,9 %) lyckades med det mera än 6 gånger.
  • bara en enda fond – HCP Focus – lyckades nå Top-10 -listan mera än 7 gånger!

(Denna statistik finns visualiserad i det bifogade dokumentet: “HCP Focus rankings Barclay managed funds report 1Q 19”.)

Alla Rapporter kan laddas här: https://www.barclayhedge.com/rankings-awards/barclay-managed-funds-report/

(Tjänsten är gratis, men förutsätter registrering)

Fondens hemsida: https://www.hcp.fi/sv/hcp-focus/

Ett urval färska artiklar om Fonden:

https://hedgenordic.com/2019/08/bet-on-online-dating-pays-off-for-hcp-focus/ (lagt till 17.9.2019)

https://www.bloomberg.com/news/articles/2019-08-18/dating-desire-delivers-22-return-for-top-equity-hedge-fund (lagt till 17.9.2019)

https://www.bloomberg.com/news/articles/2018-10-16/one-of-world-s-top-15-fund-managers-reveals-his-next-top-picks

https://hedgenordic.com/2019/04/unorthodox-value-approach-from-hcp-focus/

https://www.arvopaperi.fi/uutiset/ap/384167df-59d2-4daa-93cb-35064ab1ed46?fbclid=IwAR03NZGeoBz9eD7S_l-XSb2iLKjNnMwb7Mj0KuqMP-VYq6Rc5jipfJBGeMw

https://hedgenordic.com/2019/06/hcp-focus-crowned-as-best-long-only-equity-hf

We analysed Facebook’s sustainability shortcomings and decided to keep investing

WE HAVE invested in Facebook through HCP Focus portfolio since May 2016. In March last year, the ESG rating of Facebook was downgraded from BBB to BB in MSCI ESG database.

ESG ratings evaluate the sustainability of companies based on environmental, social and governance factors. At HCP, the Head of Risk Management screens the ESG scores of the companies included in the HCP Focus portfolio annually and informs the portfolio manager on companies with low ratings. The portfolio manager then analyses the red flagged companies case by case.

After a thorough analysis, the HCP Focus portfolio manager Ernst Grönblom has decided to keep investing in Facebook.

“Social media is still an industry in its infancy and it is still too early to say where it is headed. I decided to keep Facebook in the portfolio because I believe that despite all its serious problems, the net effect of social media is still positive”, Grönblom says.

Grönblom also points out that social media is such a new phenomenon, that investors can still influence the development of the sector through active engagement.

ACCORDING to Grönblom’s analysis, the most severe of the current controversies regarding Facebook is the Cambridge Analytica (CA) data breach. You can read the Facebook ESG analysis here.

In March 2018, New York Times and the Observer revealed Cambridge Analytica had obtained private information of more than 50 million Facebook users without their consent. Allegedly, CA had used this information for ads-targeting, and eventually political campaign micro-targeting during the 2016 U.S. elections.

Although the CA data breach brought attention to serious shortcomings in user privacy, transparency, and self-regulation of Facebook, according to Grönblom, the company has addressed many of the systemic weaknesses swiftly and decisively.

”They have removed several million fake accounts, suspended more than 400 policy violating applications, increased the head-count of employees specializing in safety to over 30 000 people, so the probability of similar scandals happening in the future has significantly reduced.”

For now, it seems like Facebook is taking real action to do better in terms of social sustainability and governance. Professional investors, however, need to watch where the digital network giant is headed.

“It is very important that investors speak openly and take a public stance against the misuse of social media – for example, for propaganda purposes,” HCP’s CEO Tommi Kemppainen emphasizes.

WE PUBLISH our ESG analysis on Facebook not only to show that we are taking controversies regarding Facebook seriously but also to contribute to the debate on ESG standards.

”Professional investors should speak openly about their concerns and publish their conclusions. ESG standards are still developing so the more organizations contribute to the debate, the stronger new standards come out of the process, Kemppainen notes.

We continue screening the ESG ratings of our investments and analysing each low rated companies individually. We also take part in the debate on sustainable investment and revise our stance if needed. You can follow on our findings by reading our blog. You can read Ernst Grönblom’s Facebook ESG analysis here.

HCP Focus Annual Review

HCP Focus ended last year as the best Finnish actively managed stock fund.

As you know, the year 2018 was challenging for all investors. Almost all asset classes including stocks, bonds, real estate, and commodities made losses.

Finnish stocks (the OMX Helsinki Cap return index) returned -4.3% on average. Global stocks (the MSCI ACWI IMI index) returned -5.8% on average.

Out of all 500+ stock funds marketed in Finland only 34 managed to end the year with a positive return. I can to my great delight inform you that HCP Focus was one them. In 2018, the fund returned +1.7%.

Removed from context, the return percentage is naturally not flattering, but considering the circumstances and compared with competitors, the result was at least satisfactory. Additionally, many investors have told me that just avoiding losses feels like a relief.

The Return in the Long Term

HCP Focus has gained well in the long term as well. Over five years, HCP Focus returned slightly less than 14% annually on average, which makes the entire period’s total return approximately 90%. Let it be mentioned for the sake of comparison that in the same period Finnish stocks (the OMX Helsinki Cap return index) returned only about 57%.

If you are interested to find out how Focus has performed in comparison with its competitors, see the attached ranking.

In this list, you can find all stock funds marketed in Finland with at least a five-year track record. The list ranks funds by performance over five years (1.1.2014 – 31.12.2018.)

The list has a total of 461 funds. HCP Focus made it to 9th place. This means that HCP Focus has outperformed 98% of its competitors.

Do you want to buy Finnish?

Another interesting detail: measured by its 5-year return, HCP Focus is the best Finnish active stock fund!

At least in the case that a Finnish stock fund meets both of these criteria:

(1) the fund is owned by a Finnish fund company; and

(2) the fund’s portfolio manager is a Finnish citizen living in Finland

Background: only eight funds have a better five-year return than Focus. Out of these only two were owned by a Finnish fund company (”Danske Invest Rahastoyhtiö Oy”), but one of the funds (”Danske Invest Teknologia Indeksi K”) is a passive fund and another (”Danske Invest Kestävä Arvo Osake K”) is managed by a foreign portfolio-management team.

So if you value active portfolio management and the opportunity to meet your portfolio manager face to face, and if you also want to buy Finnish, you know where to begin!

Best regards,

Your portfolio manager Ernst

Do not hesitate to contact me, if You have questions or comments.

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If you would like to study the theme further, I am attaching the following link (in Finnish) for the fund report archive of Suomen Sijoitustutkimus Oy. The December’s report has all the same information as the Excel table I’ve attached to this text (and much else.)

(This text is a translation of the Finnish-language HCP Focus Annual Review.)