Sustainability

As a responsible asset manager, our main task is to generate performance for our clients. At the same time, we are aware of the environmental and social challenges. In our investment activities, we specifically consider sustainability factors as part of our risk assessment. It is also essential for us that our portfolio companies comply with international standards and agreements at all times. As a member of the UN-supported Principles for Responsible Investment (PRI), we are also committed to the PRI's six principles. These guiding principles specify responsible conduct and promote investment strategies that take environmental, social, and governance aspects into account. As a member of PRI, we underline our goal to contribute to a responsible and sustainable future.

Information on ESG and sustainability implementation in our funds is available on the respective fund site in the section "Funds". The abbreviation ESG stands for "Environment", "Social" and "Governance". Our investment funds are divided into three categories by the SFDR (Sustainable Finance Disclosure Regulation): Article 6, Article 8, and Article 9. The majority of our funds classify themselves as so-called Article 8 or Article 9 funds in accordance with Regulation (EU) 2019/2088 (Disclosure Regulation).

Our Article 8 funds take ESG aspects into account in their investment decisions and apply a combination of exclusion criteria and ESG integration approaches in the investment process. Our Article 9 funds are characterized by the fact that they also pursue explicit sustainability goals, namely decarbonization or the reduction of CO2 emissions. In doing so, they are guided by the provisions of the Paris Climate Agreement.

What is our motivation for using ESG?

We are convinced that companies with a high ESG rating perform better in the long term than companies with a low ESG rating, because:

• High ESG scores are a good indicator of excellent management,
• They attract significant institutional capital flows and
• They help to reduce investment and reputational risks.

What makes our ESG approach in the ARTICO Sustainable Equity funds so unique?

"Best-in-class ESG strategies often invest with a sole focus on ESG. This can lead to undesirable sector- and country-specific biases, including the purchase of overvalued stocks. We create portfolios with superior fundamental characteristics and very high ESG scores while maintaining a very low carbon footprint.

How does ESG affect performance?

Our analysis suggests that our proprietary Artico ESG factor is an indicator of better performance.

Serafin Asset Management AG is a signatory to the UN PRI. The Artico Equity Team follows the commitment and exclusion list of the SVVK (Swiss Association for Responsible Investment), fully supports the PARIS agreement on climate change, and is also a supporter of the TCFD (Task Force on Climate-Related Financial Disclosures).