ESG / Sustainability risks

In addition to the investment focus and the investment objectives and strategies mentioned in the prospectus, the subfund takes social, environmental and governance-related (ESG) factors into consideration while implementing the aforementioned investment objectives.

For example, the securities selection process includes a non-financial analysis based on ESG exclusion criteria and other factors.  Companies that are implicated in serious environmental, human rights and business ethics issues will be excluded without exception. Such conduct is defined by the principles and standards enshrined in the UN Global Compact Compliance, Human Rights Compliance and Labor Compliance of the ILO. Investments will also not be made in companies that are implicated in controversial weapons.

Furthermore, within the scope of the ESG integration process, environmental, social and governance factors are integrated into the fundamental research process and the associated financial risks or opportunities are analyzed with respect to future investment performance. ESG ratings compiled by the world's leading ESG research providers are part of this analysis, yet interpreted with caution and questioned with a critical eye in some cases. Most ESG rating methodologies are based on a predefined systematic approach which, however, does not always result in an objective or “fair” assessment of risk.

In accordance with the Paris Climate Agreement of December 2015, Bellevue Asset Management Ltd is committed to the climate goals and supports measures to reduce global warming. BAM attaches great importance to climate-friendly or CO2-efficient portfolios that contribute to achieving the goals of the Paris Climate Agreement. The CO2 intensity is regularly measured at portfolio level and assessed against the relevant investment universe or fund benchmark.

Eventually, portfolio managers and analysts conduct an active and constructive dialogue with the management or other relevant stakeholders of the invested companies regarding environmental, social and governance aspects (Engagement). Our voting rights are actively exercised at the AGM’s through proxy voting.

The sub-fund is an ESG sub-fund as defined under article 8 SFDR 2019/2088.