Financial investment activities and investment strategy

An Investment Committee, appointed by the Hempel Foundation’s Board of Trustees, prepares decisions on the Foundation’s financial investments. Investments in bonds, shares and other financial instruments are managed by 4-5 professional external portfolio managers. This split is intended to increase the risk-adjusted net return of the total portfolio.

In order to better manage risk and generate sustainable medium-term returns, the Hempel Foundation has certain requirements for portfolio managers. They are expected to follow the UN’s Principles for Responsible Investment (UN PRI) or make investments according to corresponding principles taking into account other assessments regarding environmental, social and governance (ESG) factors. The Board has set down overall guidelines and policies for investing in different types of assets, such as different kinds of properties, bonds, shares and alternative investments.

A conservative financial investment strategy is adopted, and a robust portfolio is managed with a limited risk appetite. The majority of investments are in listed securities that can be redeemed within a few days, and the financial portfolio of the Foundation is considered part of the financial instruments for the Hempel Group.

The Investment Committee also advises Hempel Invest A/S on its investment activities including shareholdings, private equity and properties.