Sustainability-related disclosure

Integration of ESG factors into investment decisions

Arca Fondi SGR, the Investment Manager of Sidera Funds Sicav, has integrated ESG (Environmental, Social and Governance) indicators into its investment process.

 

In the following table, the “Sustainability-related disclosures” of Sidera Funds SICAV's sub-funds are summarized. They include (i) the SFDR pre-contractual disclosures (as set out in the prospectus of Sidera Funds SICAV) and (ii) complementary sustainability-related information.

 

SubfoundsCategoryArt. 6Art. 8Art. 9Disclosure on SustainabilityPRE-CONTRACTUAL DISCLOSURE
Christian EquityEquity--DownloadDownload
Digital WorldsEquity--DownloadDownload
Euro Esg CreditBond--DownloadDownload
Global Esg OpportunitiesBond--DownloadDownload
Balanced GrowthFlexible--- -
Equity Europe Active SelectionEquity--- -
Financial BondBond--- -
Global Conservative IncomeBalanced--- -
Global High YieldBond--- -
Income PlusFlexible--- -

 

Arca Fondi SGR's model, based on data provided by MSCI, allows an ESG rating to be assigned to almost all of the financial instruments invested in.

 

 

 

ENVIRONMENTAL::

  • Climate Change
  • Resource depletion
  • Waste and pollution
  • Deforestation

SOCIAL:

  • Gender policies
  • Respect for Human Rights
  • Health and Safety
  • Worker conditions

GOVERNANCE:

  • Corporate governance practices
  • Control Procedures
  • Behavior of top management in compliance with laws and professional ethics
 

 

 

Arca Fondi SGR's model, based on data provided by MSCI, allows an ESG rating to be assigned to almost all of the financial instruments invested in.

 

The ratings provided by the model are between CCC and AAA with a gradation that assumes the same granularity as that provided for credit ratings (e.g. the A rating is divided into A-, A and A+). Equity and Bond instruments, both Corporate and Government, are assigned a rating on the basis of data provided by MSCI and supplemented with additional ratings, prepared on the basis of questionnaires produced by Arca Fondi SGR (mainly for small and medium-sized enterprises on the Italian market).

 

Composite financial instruments (derivatives-futures, UCITS units, etc.) are assigned a score on the basis of their respective compositions. Each financial instrument is also associated with a flag provided by MSCI that indicates whether the issuer is involved in a dispute related to its operations and/or products. Depending on the severity of any dispute, the score attributed to the instrument is reduced to levels consistent with a BB rating.

 

Issuers belonging to specific sub-sectors (Aerospace & Defence, Casino & Gaming) are penalized with an algorithm that assigns a minimum score.

 

Is in place a so-called 'Black List' that includes the set of government issuers and corporate subsectors that cannot be included in the portfolios because they are considered not in line with environmental, social and governance sustainability issues. Sectors and companies that have a proven negative impact on society and the environment, such as producers of controversial weapons, such as anti-personnel mines, cluster bombs as well as chemical or biological weapons and a list of countries considered controversial are excluded from all our investments.

 

The Sub-funds and the benchmarks are assigned a rating calculated as a weighted average of the ratings of the financial instruments held. This methodology calculates ESG ratings by overweighting environmental factors against social and governance factors. In addition, Sub-Funds that promote environmental and/or social characteristics, classified as Art. 8 Sub-Funds under the SFDR, must comply with the best sustainability standards and must have a portfolio ESG rating at least aligned with that of the reference benchmark (for flexible Sub-Funds, aligned with that of the reference markets).

 

The Management Company in collaboration with the Investment Manager does not consider the negative impacts of the Funds' investment decisions on the Sustainability Factors due to the current focus of the investment objective. In addition, there is insufficient data available to adequately assess the potential negative or adverse impact of the Funds' investment decisions on Sustainability Factors.

For further details on the integration of sustainability factors in the remuneration policies, please refer to the detailed document.

The United Nation Principles for Responsible Investment provide for

• integrate ESG issues into investment analysis and decision-making processes;

• be active shareholders and incorporate ESG issues into investment policies;

• ask the companies in which we invest to communicate ESG concerns appropriately;

• promote the acceptance and implementation of ESG principles within our sector;

• collaborate to improve the effectiveness in applying the principles;

• communicate activities and progress made in applying the principles