General Terms aval wealth management ltd

GENERAL TERMS

Please contact Anders af Hällström for further information.

SFDR disclosure

 

Sustainability risk refers to an event or situation related to environment, social or governance (ESG) issues that may cause a material negative effect on the value of an investment. Aval Wealth Management Ltd recognizes that sustainability risks may be associated with its investment activities and investment services offered by it, and they may affect the return of the investments should they materialize.

We believe that companies acting responsibly will in the long term outperform. Therefore, we consider that sustainability issues are important when we are picking investments for our asset management clients or advising our clients on choosing investment targets. We integrate sustainability risks to our regular due diligence process according to the following principles and methods:

As we analyze the company specific risks, we include sustainability risks as an integrated part of the analysis and monitor sustainability factors together with financial analysis and figures. Sustainability factors affect the growth potential, costs and public image of the companies and are therefore material for expected return and risk of investments. We consider environmental, social and governance issues. Our sustainability analysis is based on publicly available information, such as sustainability reports published by companies and third-party sustainability assessments. Sustainability risks of the investments are monitored continuously as the news flow of the companies is followed daily.

Minimum requirement is that in addition to following laws, the invested companies comply with international norms and treaties on human rights, labor, anti-corruption and sustainability. In case a company is suspected to be in non-compliance, an attempt is made to investigate how the company is planning to rectify the issue and progress to implement the plan is monitored. In case a company is breaching these norms repeatedly it may be excluded from allowed investments.

We require our co-operation partners to consider sustainability regarding investments in all asset classes. In selection of third-party funds and asset managers the sustainability analysis is focused on investment process and re-porting. We welcome a commitment by asset managers to UNPRI or a corresponding initiative of particular asset class.

Disclosure according to the Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial service sector (“SFDR”), Article 4, paragraph 1, subparagraph b.

Aval Wealth Management Ltd (”AVAL”) does not for the time being consider the EU criteria for environmentally sustainable economic activities to be able to disclose principle adverse impacts on sustainability factors of its investments in accordance with the Article 4 of the SFDR or information listed in paragraph 2 of the Article 4.
AVAL has made this decision on the basis that in the context of the investment strategies it is not possible to conduct detailed diligence on at least some of the investment targets on the principal adverse impacts on sustainability factors required in SFDR Article 4, paragraph 1, subparagraph a. In addition, the European Supervisory Authorities (ESAs) are currently only preparing the technical standards to define the content, presentation method and methodology of the disclosures required in the SFDR. AVAL will reassess the matter when the above mentioned final technical standards and the timetable of their implementation are known.

 

Directive on the exercise of certain rights of shareholders in listed companies (EU) 2017/828

Aval WM pursues to participate in the general meetings of companies, where the interest of the investors needs to be protected. Aval WM may use proxy voting, when necessary.

Aval WM regards matters concerning investor interests particularly important. Such matters include e.g.

  • capital structure
  • remuneration policy
  • appointment and structure of the board of directors
  • ESG issues
  • transparent influencing possibilities and nomination processes

 

If the governance is deemed to not reach the required level, Aval WM tries to influence the company and / or its management to attain changes. In such cases this may be done in co-operation with other shareholders. Company may also determine that investor interests are better served by disposing of the holding than keeping it.

Aval RTS 28 – reporting