Investment in equity
Only invest money that you can do without for at least three years
Equity is considered to be the best investment over time. As we have just seen during the outbreak of COVID19, stock markets can dive from one day to the next, and then it becomes crucial that you as the investor is not pressured to sell at a bad time because you need the cash. Our rule of thumb is that you should only invest money that you do not need in the next three years. With that time horizon, you will be equipped to get through fluctuations in the market - and you will probably also have benefited from your investments. But of course, there are no guarantees for that.See how we invest
Ongoing screening of investments
We continuously screen the companies we invest in for climate impact, respect for human rights, respect for workers’ rights, environmental impact and for ethical corporate governance. The screening is carried out in collaboration with Refinitiv, which is one of the world’s largest independent providers of ESG screening.Take a closer look at Refinitiv's website
Higher requirements for ethics and responsible business operations
Your money is invested with the greatest possible consideration for human rights and responsible business operations.
More renewable energy and new technology
More investments in companies that produce green energy, reduce waste production and produce medicines and healthcare equipment.
No weapons or tobacco
Zero investment in companies that manufacture or distribute weapons or military equipment. No tobacco-related products either.
In average each share accounts for only 0.5% percent of the portfolio, which provides you with a very diversified portfolio. Thus, one does not have a high concentration in any single stocks, as one sees in many other funds and indices that are market-weighted. For example, Amazon, Microsoft and Apple together make up over 30% of the Nasdaq 100 index. In contrast, the 3 largest stocks in the ANNOX fund typically make up no more than 4%.
Our equity portfolio is global consisting of more than 200 international equities from different regions. The main regions we work with are the Nordics, European, North American and Australian Asia - ie. all the regions known as being developed countries. Together these regions make up 90% of the global stock market.
At ANNOX we believe that an equity portfolio is an important part of any investor portfolio.
That’s why we’ve created our own equity fund, which is diversified, un-leveraged with exposure to more than 200 different stocks – selected from a universe of thousands of stocks worldwide.See our results
Basically, the fund’s equities are selected on sound financial figures and attractive stock price patterns. We thus choose the stocks that provide the best combination of recognized academic risk premiums and market abnormalities to create excess returns.
We use a systematic data-driven approach to find and utilize these risk premiums, but also to optimize and diversify our equity portfolio in the best possible way. We use fixed rules, models and algorithms developed internally in Annox to determine the selection of stocks.
Factor investing - also known as a fund's investment style, can be understood as how a portfolio is designed differently from the market. For example, a portfolio manager who invests in “small cap” is known for investing in stocks that have less market value than the market average. In the academic environment, the fund is thus considered to be“tilted” or “loaded up on the size factor”. The factors are also often referred to as risk premiums, and became known when the American professors Eugene Fama and Kenneth French in 1993 published a series of groundbreaking articles that showed great evidence that the factors existed - and could be used to explain the returns of many funds. In the academic environment, these have since been further investigated, and to this day they are still researched.
Annox has developed its own equity model, based on historical and current share prices and accounts, in order to make the best possible use of these risk premiums and create excess returns.