Pre-contractual disclosures pursuant to Art. 6 (1), 7 (2) and 8 (1) of Regulation (EU) 2019/2088 (“SFDR”)
Disclosure on sustainability risks (Art. 6 (1) SFDR)
Yabeo Advisors GmbH (the “Manager”) addresses sustainability risks in its investment decision-making process insofar as relevant. ‘Sustainability risk’ means an environmental, social, or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment. When identifying a sustainability risk during the due diligence on potential investments, the Manager decides in light of the specific situation taking due account of the proportionality principle whether it gives up on the investment or proceeds with the investment alongside appropriate measures to mitigate the relevant sustainability risk. The Manager regularly reviews its policies to ensure that they address new and emerging risks as well as investors’ concerns. Currently, the manager does not expect sustainability risks to have a negative impact on the fund’s returns.
Disclosure on adverse impacts (Art. 7 (2) SFDR)
The Manager does not consider principal adverse impacts of investment decisions on sustainability factors. ‘Sustainability factors’ mean environmental, social, and employee matters, respect for human rights, anti‐corruption, and anti‐bribery matters. The Manager does not use sustainability indicators. Considering the numerous legal uncertainties currently related to the application of the provisions of the SFDR and the Regulatory Technical Standards (“RTS”) – in particular with respect to the consideration of adverse impacts – and the administrative burden resulting from such uncertainties, the Manager is not in a position to commit to such standard in light of its fiduciary duty to the fund and its investors. The Manager will constantly monitor and review the evolution around such regulations and standards and intends to change its position on adverse impacts once (i) a best practice has evolved among market participants, (ii) there is clear guidance by the administrations on the application of such regulations and (iii) the consequences of a commitment towards the consideration of principal adverse impacts are reasonably clear to the Manager.
Disclosure for financial products referred to in Article 8(1) of Regulation (EU) 2019/2088
Environment and/or social characteristics
☒ Promotes environmental or social characteristics, but does not have as its objective a sustainable investment
☐ It does not invest in sustainable investments
☒ It invests partially in sustainable investments
☐ Has sustainable investment as its objective. Sustainable investment means an investment in an economic activity that contributes to an environmental or social objective, provided that the investment does not significantly harm any environmental or social objective and that the investee companies follow good governance practices.
Has a reference benchmark been designated for the purpose of attaining the environmental or social characteristics promoted by the financial product?
☐ Yes ☒ No
I. What environmental and/or social characteristics are promoted by this financial product?
The governing documentation underlying this product (in particular, the investment guide-lines of the product) provides for investment restrictions relating to environmental and/or social characteristics, i.e., the fund may only invest in the fields of Climate-Tech & CleanTech, AgricultureTech & FoodTech, EducationTech and Inclusion – and other potentially related fields, specifically also HealthTech and FinTech as outlined in the product's investment guidelines (“Anlagebedingungen”).
What sustainability indicators are used to measure the attainment of the environmental or social characteristics promoted by this financial product?
No sustainability indicators are used as currently, no appropriate measuring of the attainment of such characteristics is currently possible.
II. What investment strategy does this financial product follow?
The product is a venture capital fund aiming at investments in technology companies with a positive social or environmental impact.
What are the binding elements of the investment strategy used to select the investments to attain each of the environmental or social characteristics promoted by this financial product?
The product may not deviate from its investment guidelines unless the governing documentation has been revised by resolution of the board of directors with the consent of the supervisory board and only if permissible under the fund’s articles of association. Therefore, no investments outside the sectors provided for by the investment guidelines will be conducted.
How is that strategy implemented in the investment process on a continuous basis?
As part of the due diligence and ongoing investment management, the investment team for the product will initially and continuously monitor whether the sector exclusions are abided by and
whether the investment falls within the investment guidelines.
What is the policy to assess good governance practices of the investee companies?
Governance documentations are reviewed as part of the due diligence and ongoing investment management, the investment team will review whether a potential investee company has good governance practices in place.
Where can I find further details on the investment strategy?
The investment strategy is set out in the product’s investment guidelines.
III. What is the asset allocation planned for this financial product?
What investments are not in line with the environmental or social characteristics promoted by this product, what is their purpose, and are there any minimum environmental or social safeguards?
See above. The product is bound by its investment guidelines set out in the governing documents and may not deviate from it. Therefore, all investments will be made in line with the environmental or social characteristics promoted by this product.
IV. Does this financial product take into account principal adverse impacts on sustainability factors?
☐ Yes ☒ No
V. Can I find I find more product-specific information online?
More product-specific information can be found on the website: www.yabeo.de.