Sustainable Finance Disclosure Regulation (“SFDR”)
SFDR, which is part of a broader legislative package under the European Commission’s Sustainable Action Plan, came into effect on 10 March 2021. The SFDR places disclosure requirements on Firms in EEA/EU member states. Whilst Ethical Capital Opportunity Advisors (“ECO Advisors”) is authorised and regulated by the United Kingdom’s Financial Conduct Authority (FCA), i.e. in a ‘third country’, ECO Advisors, as the delegated investment manager of an EU based Fund (the Protea UCITS II – ECO Advisors ESG Absolute Return Fund), has voluntarily chosen to comply with the SFDR.
The Fund Management Company (Pictet Fund Partner Solutions SA) identifies and analyses Sustainability Risks as part of it’s risk management process. ECO Advisors as the Investment Manager believe that the integration of this risk analysis could help to enhance long-term risk adjusted returns for Investors, in accordance with the investment objectives and policies of the Funds compartments. Where Sustainability Risks occur for assets of a specific compartment, there will be a negative impact on the specific compartment that may result in a negative impact on the returns of the investors.. On that basis, the Management Company therefore requires the Investment Managers of their Funds to integrate Sustainability Risks into their individual investment processes.
SFDR – Protea UCITS II – ECO Advisors ESG Absolute Return Fund
ECO Advisors integrates Sustainability Risks and opportunities into its research, analysis and investment decision-making processes. The Fund it manages does so in a way to promote, among other characteristics, a combination of environmental and social characteristics (as provided under article 8 of the SFDR).
Full details regarding the Investment Manager’s approach to integrating sustainability in the investment process can be found in the Fund prospectus available in the Investor Portal area of this website and in the SFDR disclosure area on the website of the UCITS Management Company, Pictet Fund Partner Solutions, SA.
Ethical Capital Opportunity Advisors Ltd, a UK authorised MiFID Investment Manager and BIPRU Firm (FRN: 812525) manages the Protea UCITS II – ECO Advisors ESG Absolute Return Fund (a UCITS SICAV Fund based in Luxembourg) on a delegated basis. Pictet Fund Partner Solutions is the EU based UCITS ManCo and is therefore responsible overall for compliance with the SFDR.
Sustainable Remuneration Policy
We are fully committed to the integration of sustainability risks in our investment decisions and our pay strategy is designed to reflect this. Our strategy is structured to optimise financial results and promote sustainable behaviour without generating risk that may compromise investors’ long-term interests.
The commitment we have to ESG goals is, therefore, linked to our financial performance and long-term sustainability.
Our ESG Remuneration Strategy comprises the following 3 pillars:
Board oversight is key to ensuring ESG topics are embedded across the firm’s broader strategy. Our Board regularly discusses and monitors our ESG goals, including their metrics and achievements, and how they are linked to pay.
Our risk management processes ensure ESG factors are considered in such assessments. Our compensation policies incentivise ESG outcomes through discouraging risks that undermine such goals and, in particular, their link to pay, including bonuses.
The above are reviewed and assessed periodically. We ensure our metrics are relevant, up-to-date and accurate, and our ESG Remuneration Strategy is integrated into annual financial statements.