ESG and Sustainability
INTEGRATION OF SUSTAINABILITY RISKS (ARTICLE 3, SFDR)
“Sustainability Risks” are defined under SFDR as environmental, social, or governance (ESG) events or conditions that, if they occur, could cause an actual or a potential material negative impact on the value of an investment. Multi Family Wealth (“MFW”) is committed to incorporating ESG factors and considerations into its investment, asset management and reporting activities, including pre-investment, during screening and due diligence, and post-investment in MFW’s asset management initiatives.
MFW’s investment philosophy comprises the identification of “global winners” from developed countries that are well positioned in terms of ESG criteria. The strategy has a bias towards large capitalisation stocks, which are highly transparent and followed by a wide range of investment professionals. We focus on integrating ESG criteria into the portfolio stock picking process, by assessing the evolution of each issuer with well-known ESG data providers such as S&P Global and MSCI and defining quantitative ESG targets that must be attained at a portfolio level.
Information about ESG criteria for the companies in the watch list and from the main equity indices is gathered from Bloomberg and other publicly available information sources and the companies are evaluated on a regular basis. Management follows closely news items, sudden movements and revisions of ESG criteria for each of the issuers it follows. Compliance with the ESG established criteria is revised at least quarterly during the investment committees.
No consideration of adverse impacts of investment decisions on sustainability factors (Article 4, SFDR)
This present statement is being made pursuant to Article 4 of the Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (the "SFDR") and applies to Multi Family Wealth Limited.
Article 4 of the SFDR requires certain investment firms to publish on their websites a 'comply or explain' statement on whether they consider "principal adverse impacts" of investment decisions on sustainability factors, taking into account the firm’s size, nature, scale of activities and the types of financial products they make available. Firms with fewer than 500 employees (such as MFW) may either consider principal adverse impacts or explain why they do not consider the adverse impacts of their investment decisions on sustainability factors.
The SFDR defines "sustainability factors" in Article 2(24) of the SFDR as "environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters".
Whilst MFW considers sustainability risks as part of its investment management processes as outlined in its disclosure pursuant to Article 3 (above) of the SFDR, at present, MFW does not consider the principal adverse impacts of its investment decisions on sustainability factors at the entity level primarily due to the scale of its operations. It therefore believes that its existing ESG policies are appropriate, proportional and tailored towards its investment strategies.
REMUNERATION POLICY (ARTICLE 5, SFDR)
MFW has an incentive program designed to reward performance that contributes to the success and profitability of MFW and funds managed by MFW. MFW believes that responsible corporate behaviour, including the incorporation of ESG factors into the investment process, will have a positive influence on the long-term financial performance of the firm, thus aligning responsible behaviour with remuneration.
Disclosure in relation to funds that are subject to SFDR (Article 10, SFDR)
MFW does not currently manage any funds in scope of Article 8 or Article 9 of the SFDR. Should this change, the relevant data will be maintained and published via the fund’s website.