Sustainability Information
Sustainability regulations require companies to be transparent about their environmental and social impact. This helps investors make informed decisions and promotes responsible investment choices. At Mpartners, we report under the SFDR; you can read more about this below.
Sustainable Finance Disclosure Regulation (SFDR)
Since March 2021, new European regulations for sustainable investing, the SFDR, have come into effect. These regulations ensure that investors are better informed about how sustainable an investment portfolio truly is.
As a long-term investor, Mpartners always incorporates sustainability criteria into the investment process. Each of the ESG (Environment, Social, Governance) factors is carefully measured because we believe these factors are important for determining a company's long-term success.
The portfolios of Mpartners fall under Article 8 of the SFDR regulations. This means that our portfolios promote ecological or social characteristics but do not have a sustainable investment objective as defined in the SFDR. To measure and monitor the sustainability characteristics of the portfolio, we use external data providers, similar to the research providers we use for financial and macro analysis. The goal is a formal integration of ESG metrics into the investment process and to report this data transparently on an annual basis in order to promote environmental and social characteristics.
How we integrate sustainability risks into our policy
As an asset manager, we incorporate sustainability risks into our investment process. According to the SFDR, a sustainability risk is "an event or circumstance in the environmental, social, or governance field that, if it occurs, could cause a significant negative effect on the value of the investment".
We integrate sustainability risks into our decision-making process regarding investment decisions by:
Implementing a due diligence policy that considers material negative impacts on sustainability factors;
Selecting companies that perform well on sustainability factors compared to the industry in which they operate;
Excluding high-risk companies and sectors from our investments.
By weighing sustainability risks in our investment policy and processes, we aim to optimize the risk-return profile of our portfolios and create long-term value for our clients.
Sustainability risks are considered both at the entity level and per portfolio separately. For instance, Mpartners does not invest in companies that are directly involved in the production of tobacco, pornography, and controversial weapons, nor in the direct provision of gambling services. Additionally, some portfolios have exclusions for companies that are directly involved in the extraction and production of fossil fuels. Within certain portfolios, we invest not only in companies but also in green bonds. This helps mitigate sustainability risks, as the proceeds from green bonds are specifically used for sustainable projects.
For more information, see the documents below.
Pre-contractual information for our financial products:
Periodic information for our financial products:
How we integrate sustainability risks into our remuneration policy
Mpartners also integrates sustainability factors into its remuneration policy. You can read more about this in our Remuneration Policy.
How we deal with adverse effects on sustainability
At Mpartners, we consider the adverse effects of our investments on people and the planet. With our focus on the long term, we map the negative effects of our investments on sustainability factors. In accordance with the SFDR regulations, we take ecological, social, and governance factors into account in our investment decisions.
For more information, you can find our Statement on the principal adverse effects of investment decisions on sustainability factors (SFDR Annex I - PAI).
