Our Funds and Strategies in the Netherlands

FMO Privium Impact Fund

The FMO Privium Impact Fund (“FPIF’) co-invests in both existing and new loans (to be) provided by FMO to its clients. The Fund may invest in a diversified portfolio of new and existing loans alongside FMO. The loans contribute to the fight against climate change and support job creation in Developing and Emerging Economies while targeting a financial return. It may invest in loans to financial institutions, renewable energy projects and agribusiness companies who comply with FMO’s Corporate Governance Framework.

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Summary
The Fund’s objective is to achieve long term capital growth with impact. To this end the investment strategy of the Fund is to invest in a diversified portfolio of both existing and new loans alongside FMO. 

The Fund has making sustainable investments as its objective and aims to make socially and environmentally responsible investments. The Fund aims to provide investors with an attractive financial return while at the same time endeavoring to create impact in Developing and Emerging Economies. Impact will be measured according to the impact methodology as adopted by FMO. In the context of the Sustainable Finance Disclosure Regulation (“SFDR”), the Fund is classified as an Article 9 Fund. 

Impact achieved by the Fund is measured according to the impact methodology as adopted by FMO and reported through impact indicators on portfolio level and sector specific indicators. These are aligned with the UN Sustainable Development Goals (SDGs). The Fund aims to support the Sustainable Development Goals 8 (Decent Work and Economic Growth), 10 (Reduced Inequalities) and 13 (Climate Action).   

Investments are done alongside FMO. To this end, the Fund has developed an investment process and policies that incorporates FMO documentation and processes but operates separately, both in making the investment decision as well as in monitoring the reporting on impact and financial return. A key element of the process is the Corporate Governance screening where investment is only considered if the investee company passes FMO’s Corporate Governance review. of the rights & responsibilities of the investee’s shareholders, (supervisory) board of directors, and management. The Fund also requires the investee company to comply with all tax regulations in their home and host countries and show responsible tax behaviour in line with what is being aimed for with the OECD/BEPS action plan. 

In its investment process, as well as monitoring and reporting, the Fund considers Principle Adverse Impacts (“PAI”) as part of its investment decision even though all investments are based outside of the EU and therefore all counterparties are not subject to this disclosure. The Fund sees reporting on the PAI as an effective method to mitigate impacts of the investments by identifying adverse impacts and reporting on engagement. Any engagement will be done by Privium or FMO on behalf of the fund and will benefit from the extensive global network of the FMO organization. Data collection and data quality verification can be challenging. The Fund has overcome these challenges where possible by using an internationally developed Joint Impact Model and starts its data collection in the earliest stages of the due diligence process. Reporting to investors occurs on a monthly basis with regards to financial returns and on a quarterly basis with regards to the investment allocation towards the sustainable objective and the SDG indicators. 

No significant harm to the sustainable investment objective
The Fund considers Principal Adverse Impacts (PAI) of its investment decisions on sustainability factors as part of its investment due diligence process and procedures regarding the Fund. For sustainable investments this means ensuring that the investments do no significant harm to any environmental or social objective. By mapping the PAI framework to FMO’s extensive analysis of local and international environmental, social and human rights regulations, each investment is thoroughly screened on potential significant harm and excluded from FMO’s portfolio and therefore the Fund’s portfolio if the criteria are not met. 

The PAI the Fund takes into account are listed in the PAI statement. They consist of 14 mandatory PAI and 2 voluntary PAI. The PAI related to Sovereigns and Supranational or Real Estate are not applicable for the Fund as there are no investments in these assets. The PAI the Fund reports on are divided in sections: GHG Emissions, Biodiversity, Water, Waste and Social and Employee Matters. 

The Fund analyses individual PAI using FMO’s extensive analysis pre-investment and the PAI metrics to monitor harm over time. 

Please find more details in the PAI Report

Sustainable investment objective of the financial product
The Sustainable Development Goals (SDGs), were presented by the United Nations in 2015 as the global blueprint for eradicating hunger and poverty, protecting our planet and ensuring peace and freedom for all in the year 2030. This blueprint is divided into 17 goals, each with a specific focus.

Following FMO’s impact strategy, FPIF aims to support the Sustainable Development Goals 8 (Decent Work and Economic Growth), 10 (Reduced Inequalities) and 13 (Climate Action). It does so by investing in loans to banks, businesses, and projects in emerging and frontier economies in the selected geographies and sectors. Privium, on behalf of FPIF, follows FMO’s methodologies in how to evaluate and measure its contributions to the SDGs. 

Please find more details in the Pre-Contractual Disclosure Document (Annex III) 

Investment strategy
To achieve the return and impact objective the Fund will co-invest in both existing and new loans (to be) provided by FMO to its clients. The Fund may invest in a diversified portfolio of new and existing loans alongside FMO. The loans contribute to the fight against climate change and support job creation in Developing and Emerging Economies while targeting a financial return. It may invest in loans to financial institutions, renewable energy projects and agribusiness companies who comply with FMO’s Corporate Governance Framework. The targeted return net of fees is expected to be between 2 and 4 per cent per annum, over a multi-year cycle. 

Please find more details in the Pre-Contractual Disclosure Document (Annex III) 

Proportion of investments 
The Fund contributes to Sustainable Development Goals (SDG) as well as SFDR required sustainable objectives. The breakdown of the fund’s objectives are as follows: 

  1. 100% of the Fund’s Invested Capital contribute to SDG 8 (Decent Work and Economic Growth) and therefore the Fund’s social objective. 
  2. The Fund’s target for investments contributing to SDG 10 (Reduced Inequalities) is set at ≥30% of the Invested Capital of the Fund.    
  3. The Funds target for investments contributing to SDG 13 (Climate Action) and the Fund’s environmental objective is set at ≥30% of the Invested Capital of the Fund. 

Of its assets not needed for cash and portfolio management activities, the Fund’s investments are all used to meet the sustainable investment objective. Of the Fund’s total NAV, a minimum share of 75% may be expected to be allocated to sustainable investments, while the remainder will be used for cash and portfolio management activities. 

Specific impact targets have been defined per SDG and performance indicators have been attached in order to be able to measure and compare the defined targets.  

Please find more details in the Pre-Contractual Disclosure Document (Annex III) 

Monitoring of sustainable investment objective
The Fund monitors the attainment of the sustainable objective as follows: 

Quarterly reporting on the performance indicators to investors per SDG

  1. Monthly monitoring of investment allocation towards the Fund’s sustainable objective
  2. Monthly overview of the Fund’s exposure to ESG risks are reviewed and discussed in the monthly Investor Advisory Committee and Privium’s Investment Committee. 

Please find more details in the Pre-Contractual Disclosure Document (Annex III) 

Methodologies
Specific impact targets have been defined per SDG and performance indicators have been attached to be able to measure and compare the defined targets. 

The Fund uses the following methodologies to measure the attainment of sustainable objective: 

  1. For investments contributing to SDG 10 (Reduced Inequalities) the Fund has incorporated FMO’s Reduced Inequalities label which clarifies if an investment reduces inequalities between countries with poorer countries receiving sufficient funding and between businesses within a country, focusing on the most inclusive businesses.
  2. For investments contributing to SDG 13 (Climate Action) a 100% alignment with the 1.5֯ pathway of the Paris agreement to limit global warming is aimed for. For Climate Action (SDG 13) FMO developed a green label. The “Green methodology” document, which is available on FMO’s website, describes the Green criteria, eligible investments and the internal green labelling process.
  3. Joint Impact Model (JIM): with input data such as revenue and power production from investment portfolios, JIM enables users to estimate financial flows through the economy and its resulting economic (value added), social (employment) and environmental (greenhouse gas emissions) impact. 

The Fund uses the SDG performance indicators to compare the previous two quarters to the performance of each quarter to indicate how the Fund’s investments have contributed to the sustainable objectives of the Fund. 

Please find more details in the Pre-Contractual Disclosure Document (Annex III) 

Data sources and processing
The Fund uses data for the following purposes: 

  • Investment sourcing 
  • Report on attainment of the sustainable objective 
  • Report on PAI 

Data used and processed by the Fund to attain the sustainable investment objective and report on PAI are as follows: 

  1. Data sources: 
    – Start data for each loan is being collected during FMO’s due diligence and approval process, at the latest at contracting of the loan. 
    – Ongoing performance data on these indicators are collected annually. This annual collection process occurs throughout the year and starts in principle 12 months after contracting a loan.
    – Privium analysis in Privium’s Profile Note 
    – Joint Impact Model (JIM) outcomes: with input data such as revenue and power production from investment portfolios, JIM enables users to estimate financial flows through the economy and its resulting economic (value added), social (employment) and environmental (greenhouse gas emissions) impact. 
  2. Data quality: Privium, on behalf of FPIF, follows FMO’s policy regarding the Corporate Governance screening since FMO remains the lender of record. An underlying asset must pass the Corporate Governance screening before moving forward in the investment process. FMO’s Know Your Customer Policy explains in more detail how FMO has checks in place to validate if data sources are trustworthy. The investee is contractually obligated to respond to FMO’s requests for data in a complete and timely manner. 
  3. Data processing: FMO Investment Management (“FMO IM”) gathers all relevant data required from FMO. The Fund checks the received data from FMO IM and applies it toward investment decision making process, monitoring and reporting. 

Limitations to methodologies and data
The Funds expects limitations to occur with the current methodologies and data collection as all loans are provided in geographical areas where it can be challenging to receive the correct data from the investee. Additional data is expected to become available over time. FMO’s international collaboration with other DFI’s as well as the continued maturation of the financial services industry in these Economies should lead to improved availability of data.

Due diligence
As part of the robust investment process, the following due diligence is carried out internally and externally on the underlying assets: 

  1. FMO IM checks whether a loan complies with the Fund’s criteria and sustainable objective. Additionally, a loan needs to fit to the portfolio composition. All findings and analysis (including ESG analysis) are included in FMO’s investment advice which is set to a consistent template and supported with a fixed set of documents. 
  2. The Fund reviews FMO IM’s prepared investment advice during the monthly Investment Committee meeting.  
  3. The Fund Manager reviews FMO’s ESG policy and due diligence process regularly. 
  4. All investments and their contribution to the Fund’s sustainable objective are audited annually by an external third party. 

Please find more details in the Prospectus and the Pre-Contractual Disclosure Document (Annex III) 

Engagement policies
The Fund itself does not directly engage in any industry or public policy engagement. Engagements such as these are carried out by either Privium Fund Management or FMO (as representative of FMO Investment Management). 

However, if/when FMO engages with an investee on behalf of the Fund, the Fund benefits from the extensive network of the FMO organization engaging on a multinational and local level. Multinational via the FMO organization and locally with the FMO affiliates on the ground. Engagement centers around ESG performance per investee for which the FMO has developed several management tools. 

FMO also actively engages in its own industry to ensure DFI’s together create more harmonised ESG level-playing field. Furthermore FMO is a member or signatory of many industry initiatives or sector organisations for the same purpose: to enhance harmonization and find solutions for often challenging requirements for the markets in which it operates.  

Please find more details in the PAI Report 

Attainment of the sustainable investment objective
The Fund does not compare its impact performance to a benchmark or index but instead reports its contribution to the SDG’s both quantitatively and qualitatively.

Reporting

Prospectus

Forms

PSIF

Privium Sustainable Impact Fund

Privium Sustainable Impact Fund’s objective is to achieve impact and long-term capital growth by making sustainable impact investments. To achieve PSIF’s impact and long-term capital growth objective, the strategy of PSIF is to invest in a diversified portfolio of listed and unlisted Investment Funds, Investee Companies and fixed income instruments. PSIF invests in developed countries and emerging markets and shall be focused on sustainable impact investments.  

Summary
Privium Sustainable Impact Fund (“the Fund”) was created to meet ABN AMRO Private Bank’s needs for sustainable and impact investments within the alternatives asset class.  

The Fund has making sustainable investments as its objective and aims to make socially and environmentally responsible investment via its broad mandate and a diversified impact portfolio. To achieve the Fund’s objective, the strategy of the Fund is to invest in a diversified portfolio of listed and unlisted Investment Funds, Investee Companies and fixed income instruments. 

The Fund aims to invest 100% of invested capital in SFDR article 9 funds, and or non-EU funds that make 100% sustainable investments based on proprietary analysis, and companies and financial instruments deemed to be sustainable based on proprietary analysis. 

A minimum of 20% of the invested capital of the Fund will contribute to an environmental objective and a minimum of 20% of the invested capital of the Fund will contribute to a social objective. 100% of the Fund’s invested capital will be in sustainable investments. Any ‘other’ holdings in the fund are cash or money market instruments or instruments regarding foreign currency hedging and will make up no more of 25% of the Fund’s total Net Asset Value. Meaning that a minimum of 75% of the Fund’s Net Asset Value will be invested into sustainable investments. 

The Fund’s investments are divided into multiple themes and the associated UN Sustainable Development Goals (SDG’s). In its investment decision making, the Fund considers the Principal Adverse Impacts (“PAI”) on sustainability issues as outlined in the Sustainable Finance Disclosure Regulation (“SFDR”). 

The Fund has a multi-thematic approach, meaning an investment is categorized under a main ESG theme. The ESG themes currently being targeted include: 

  • Social Objectives  
    Financial Inclusion, Education and Social Impact 
  • Environmental Objectives 
    Renewable Energy and Natural Capital 

The themes may change or be expanded on as the investment universe broadens. Each theme aims to contribute to several UN Sustainable Development Goals (“SDG”). The impact of the Fund is measured on each SDG using impact key performance indicators.   

The fund of fund structure limits the Fund’s direct influence in the underlying investments. Therefore, the Fund has a sustainability due diligence process in place. In its investment decision making process, the Fund considers the PAI on sustainability issues as outlined in the SFDR to assess that (potential) investments do no significant harm while contributing to the sustainable investment objective. In addition to considering the PAI, the Fund investigates the governance quality of the companies, organizations, vehicles, and funds managing the ultimate investments. This good governance analysis is aligned with international standards. 

Monitoring the attainment of the sustainable objective is done in monthly, quarterly and annual reporting while the Fund’s measurement, avoidance, mitigation and improvement on principal adverse impact indicators is reported annually in a separate PAI report.   

No significant harm to the sustainable investment objective 
In its investment decision making process, the Fund takes into account the PAI on sustainability issues as outlined in the SFDR to assess that (potential) investment do not significantly harm the sustainable investment objective. 

As the Fund mainly invest in other funds, the Fund assesses if the target funds have: 

  • commitments, reporting, targets, policies and processes in place which take PAI into account where applicable 
  • assessment of underlying investments to confirm compliance with the Fund’s minimum criteria  

Hence, the Fund is addressing the PAIs as follows: 

  • negative screening/exclusions 
  • positive screening  
  • quality investigation (of the manager’s commitments, reporting, targets, policies.  

Depending on the underlying investment and ESG theme, different PAI are prioritised.   

As part of the investment process, the Fund performs a good governance analysis aligned with international standards. The Funds investigates the governance quality of the companies, organizations, vehicles, and funds managing the ultimate investments. This analysis is based on a combination of international standards from the UN Principles for Responsible investment (UNPRI), UN Global Compact, the OECD Guidelines for Multinational Enterprises the UN Guiding Principles on Business and Human Rights and the Sustainability Accounting Standards Board (SASB). Focus points for the analyses conducted include employee engagement, diversity & inclusion; business ethics; operational and manager quality. 

More details can be found in the Pre-Contractual Disclosure Document (Annex III)

Sustainable investment objective of the financial product
The objective of the Fund is to achieve impact and long term capital growth by making sustainable impact investments. The Fund invests in a diversified portfolio of listed and unlisted Investment Funds, Investee Companies and fixed income instruments with the intent to contribute to measurable positive social, economic and environmental impact alongside financial returns.  

The Fund has a multi-thematic approach, meaning an investment is categorized under a main ESG theme. The themes may change or be expanded on as the investment universe broadens. The ESG themes currently being targeted include:  

  • Social Objectives  
    Financial Inclusion, Education and Social Impact 
  • Environmental Objectives 
    Renewable Energy and Natural Capital  

Each ESG theme aims to contribute to several UN Sustainable Development Goals (SDGs). To identify how its investments are contributing to the SDGs, investments are divided into ESG themes based on their sustainable investment objectives (social or environmental) or economic activities. The impact of the Fund is measured on each SDG using specific key performance indicators per theme/SDG.  

  • Financial Inclusion: contributes to SDG 5 (Gender Equality) 8 (Decent Worth and Economic Growth) and 10 (Reduced Inequalities)
  • Education: contributes to SDG 4 (Quality Education) and 10 (Reduced Inequalities)
  • Renewable Energy: contributes to SDG 7 (Affordable and Clean Energy), 9 (Industry, Innovation and Infrastructure) and 13 (Climate Action)
  • Natural Capital: contributes to SDG 6 (Clean Water and Sanitation), 13 (Climate Action) and 15 (Life on Land)
  • Social Impact: contributes to SDG 10 (Reduced Inequalities) and 11 (Sustainable Cities and Communities) 

The Fund selects all renewable energy and natural capital investments to be aligned with, and significantly contribute to climate change mitigation and alignment with theParis Agreement . This is measured through CO2 avoided (Renewable Energy) or CO2 sequestered (Natural Capital), or EU Taxonomy alignment  

More details can be found in the Pre-Contractual Disclosure Document (Annex III)

Investment Strategy 
The Fund’s objective is to achieve impact and long-term capital growth by making sustainable impact investments. To achieve the Fund’s impact and long-term capital growth objective, the strategy of the Fund is to invest in a diversified portfolio of listed and unlisted Investment Funds, Investee Companies and fixed income instruments. The Fund will have exposure in both developed countries and emerging markets and shall be focused on sustainable impact investments.  

The alignment with the impact investment objective of the Fund drives the initial screening of a potential investment. Investments that do not aim to significantly contribute to at least one SDG or cannot report on PSIFs required indicators to quantify their contribution, are excluded from the investable universe.  

Then, PSIF’s minimum criteria are applied: 

  1. For funds domiciled in the EU, funds must be classified as SFDR article 9. 
  2. Funds not falling under SFDR, such as funds domiciled outside the EU, can nevertheless have a clear sustainability objective. PSIF can invest in such funds if they 1) align with the sustainable investment objective, 2) match the definition of sustainable investment based on the Fund’s sustainability due diligence. 
  3. All funds that PSIF invests in must be signatories of, or conform with, UNPRI. This can be at fund company level or investment manager level. 
  4. All investee funds must comply with the exclusion list of PSIF. 
  5. All investee funds must be able to fulfil the reporting requirements of PSIF. 

The Fund investigates the governance quality of the companies, organizations, vehicles, and funds managing the ultimate investments. This analysis is based on a combination of international standards from the UN Principles for Responsible investment (UNPRI), UN Global Compact, the OECD Guidelines for Multinational Enterprises the UN Guiding Principles on Business and Human Rights and the Sustainability Accounting Standards Board (SASB). Focus points for the analyses conducted include employee engagement, diversity & inclusion; business ethics; operational and manager quality. 

More details can be found in the Pre-Contractual Disclosure Document (Annex III)

Proportion of investments
The Fund aims to invest 100% of invested capital in: 

  1. SFDR article 9 funds, and or 
  2. Non-EU funds that make 100% sustainable investments based on proprietary analysis, and
  3. companies and financial instruments deemed to be sustainable based on proprietary analysis. 

A minimum of 20% of the invested capital of the Fund will contribute to an environmental objective and a minimum of 20% of the invested capital of the Fund will contribute to a social objective. 

Here invested capital is defined as the investments in the above mentioned assets. While the Fund aims to select as much of its portfolio investments as possible to be aligned with its sustainable objective, this is not always possible. Fund assets that are not aligned with its sustainable objective are grouped in the category ‘other’. An asset may be marked as ‘other’ for the following reasons:  

  • Cash or money market instruments: the Fund may hold cash or money market instruments committed to a planned investment, cash freely available for investment or cash for portfolio management purposes. 
  • Foreign currency hedging: the Fund may hedge its foreign currency exposure for portfolio management purposes. The Fund does not apply hedging instruments or other derivatives for other purposes.  

It can be assumed that the category ‘other’ will make up no more than 25% of the Fund’s total Net Asset Value, meaning that a minimum of 75% of the Fund’s Net Asset Value will be invested into sustainable investments. 

An investment that is found to no longer fit with the Fund’s objective or does not meet the minimum criteria, will be divested. 

More details can be found in the Pre-Contractual Disclosure Document (Annex III)

Monitoring of the sustainable investment objective
The Fund monitors the attainment of the sustainable objective as follows: 

  1. Monthly monitoring of investment allocation towards the Fund’s sustainable objective
  2. Quarterly monitoring on Key Performance Indicators per ESG theme
  3. All investments are monitored on an ongoing basis from both financial and sustainability point of view. During this monitoring PSIF maintains close contact with the investee funds and engages with them if their actions appear to deviate from the Fund’s investment objective.  

The Fund reports on the attainment of the sustainable objective as follows: 

  • Monthly in the fund factsheet
  • Annually in the:
    • Annual Impact Report 
    • Principle Adverse Impact report  
    • (Interim) Financial Statements 

More details can be found in the Prospectus and Pre-Contractual Disclosure Document (Annex III)

Methodologies
The Fund uses the following methodology to measure the attainment of sustainable objective:

Financial Inclusion (covering investments with a social objective) 

SDG 

Target 

Key Performance Indicator (KPI)  

How is the impact being measured  

 5 (Gender Equality)

Increase gender equality and empower women and girls by facilitating access to finance for women 

The % loans to women (based on the Invested Capital of the Fund) 

The impact of the Fund is being measured based on the information being received from the underlying investments, including Annual Reports, Impact Reports or other periodic reporting information. Where the reporting date of an investment deviates, the most up-to-date data is used. 

  8 (Decent Work and Economic Growth)

Increase sustained, inclusive and sustainable economic growth, full and productive employment and decent work 

The impact is being measured by the increased number of jobs supported (based on the Invested Capital of the Fund). 

The impact of the Fund is being measured based on the information being received from the underlying investments, including Annual Reports, Impact Reports or other periodic reporting information. Where the reporting date of an investment deviates, the most up-to-date data is used. 

 10 (Reduced Inequalities)

Reduce the development gap between urban and rural communities in developing economies by increasing the number of loans to borrowers in rural areas 

The % loans to borrowers in rural areas (based on the Invested Capital of the Fund) 

The impact of the Fund is being measured based on the information being received from the underlying investments, including Annual Reports, Impact Reports or other periodic reporting information. Where the reporting date of an investment deviates, the most up-to-date data is used. 

Education (covering investments with a social objective) 

SDG 

Target 

Key Performance Indicator (KPI)  

How is the impact being measured  

 4 (Quality Education)

 

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all by providing loans to underprivileged students with access to education.  

Due to the fact that the related investment structure will mature over time as the loans will be paid off, the number of loans will decrease. Any Increase will depend on development of new investment structures. 

The number of loans being provided to students (based on the Invested Capital of the Fund) 

The impact of the Fund is being measured based on the information being received from the underlying investments, including Annual Reports, Impact Reports or other periodic reporting information. Where the reporting date of an investment deviates, the most up-to-date data is used. 

 10 (Reduced Inequalities)

Reduce inequality within and among countries by increasing the number of students from developing economies that gaining access to education.  

Due to the fact that the related investment structure will mature over time as the loans will be paid off, the number of loans will decrease. Any Increase will depend on development of new investment structures. 

The % of loans being provided to students from non-high-income countries (based on the Invested Capital of the Fund) 

The impact of the Fund is being measured based on the information being received from the underlying investments, including Annual Reports, Impact Reports or other periodic reporting information. Where the reporting date of an investment deviates, the most up-to-date data is used. 

Renewable Energy (covering investments with an environmental objective) 

SDG 

Target 

Key Performance Indicator (KPI)  

How is the impact being measured  

7 (Alternative and Clean Energy) 

Ensure access to affordable, reliable, sustainable and modern energy by increasing the share of renewable energy in the global energy mix 

The number of MWh (megawatt -hour) generated (based on the Invested Capital of the Fund) 

The impact of the Fund is being measured based on the information being received from the underlying investments, including Annual Reports, Impact Reports or other periodic reporting information. Where the reporting date of an investment deviates, the most up-to-date data is used. 

9 (Industry, Innovation and Infrastructure) 

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation by increasing the construction of renewable energy capacity and related infrastructure 

The number of MW (megawatt) generation or storage capacity installed (based on the Invested Capital of the Fund) 

The impact of the Fund is being measured based on the information being received from the underlying investments, including Annual Reports, Impact Reports or other periodic reporting information. Where the reporting date of an investment deviates, the most up-to-date data is used. 

 13 (Climate Action)

Take urgent action to combat climate change and its impacts by avoiding CO² emissions from fossil fuel by investing in renewable energy and CO²-saving projects 

The number of tCO² emissions avoided (based on the Invested Capital of the Fund) 

The impact of the Fund is being measured based on the information being received from the underlying investments, including Annual Reports, Impact Reports or other periodic reporting information. Where the reporting date of an investment deviates, the most up-to-date data is used. 

Natural Capital (covering investments with an environmental objective) 

SDG 

Target 

Key Performance Indicator (KPI) 

How is the impact being measured 

 6 (Clean Water and Sanitation)

Ensure sustainable management of water and sanitation by responsibly managing waterways in invested natural capital projects 

Kilometres of sustainably managed watercourses. (based on the Invested Capital of the Fund) 

The impact of the Fund is being measured based on the information being received from the underlying investments, including Annual Reports, Impact Reports or other periodic reporting information. Where the reporting date of an investment deviates, the most up-to-date data is used. 

13 (Climate Actuon)

 

Take urgent action to combat climate change and its impacts by avoiding CO² emissions by investing in natural capital projects 

Portfolio sequestration of number of tonnes CO²e / annum. (based on the Invested Capital of the Fund) 

 

The impact of the Fund is being measured based on the information being received from the underlying investments, including Annual Reports, Impact Reports or other periodic reporting information. Where the reporting date of an investment deviates, the most up-to-date data is used. 

15 (Life on Land) 

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss by investing natural capital projects 

Number of hectares of sustainably managed land area (based on the Invested Capital of the Fund) 

The impact of the Fund is being measured based on the information being received from the underlying investments, including Annual Reports, Impact Reports or other periodic reporting information. Where the reporting date of an investment deviates, the most up-to-date data is used. 

Social Impact (covering investments with a social objective) 

SDG 

Target 

Key Performance Indicator (KPI) 

How is the impact being measured 

10 (Reduced Inequalities) 

 

Reduce inequalities on a local level by providing disadvantaged people with essential services  

Number of people provided with essential services (based on the Invested Capital of the Fund) 

The impact of the Fund is being measured based on the information being received from the underlying investments, including Annual Reports, Impact Reports or other periodic reporting information. Where the reporting date of an investment deviates, the most up-to-date data is used. 

11 (Sustainable Cities and Communities) 

 

Make cities and settlements inclusive, safe, resilient and sustainable by providing safe, affordable housing and basic services to disadvantaged people. 

Number of disadvantaged people provided with affordable, quality homes (based on the Invested Capital of the Fund) 

The impact of the Fund is being measured based on the information being received from the underlying investments, including Annual Reports, Impact Reports or other periodic reporting information. Where the reporting date of an investment deviates, the most up-to-date data is used. 

More details in the Pre-Contractual Disclosure Document (Annex III)

Data sources and processing
The Fund uses data for the following purposes: 

  • Investment sourcing 
  • Report on attainment of the sustainable objective
  • Report on PAI 

Data used and processed by the Fund to attain the sustainable investment objective and report on PAI are as follows: 

  1. Sourcing: In the sustainability assessment of (potential) investments quantitative data is used where possible and applicable. To record and report the principal adverse impact indicators as well as the sustainability risks the Fund Manager is using independent software for its data collection. The Fund Manager decided to use external software given the complexity and the need of standardization of data collection. In the Treety platform, the identified and reported PAIs are collected, and progress is monitored.
  2. Data processing: the Fund processes data from investee via a thirds party software provider, checks the received data and does not process data beyond preparing investor communications with data received at 1.

Limitation to methodologies and data
The Fund expect limitations to occur with the current methodologies and data collection as all investees are transitioning to new reporting methods required under the Sustainable Finance Disclosure Regulation (“SFDR”). As the financial services industry matures, the availability of data related to the Fund’s SDG KPI’s, methodology and PAI indicators expected to evolve.

Due diligence

The fund of fund structure limits the Fund’s direct influence in the underlying investments. Therefore, PSIF has a sustainability due diligence process in place to assess the sustainability and impact of the fund strategy and its underlying assets. 

  1. Investment Advice: In the investment advice ABN AMRO Investment Services (“AAIS”) will present their advice on the investments being recommended. The Investment Advice is set according to a consistent template (including dedicated ESG paragraph) and supported by a fixed set of ESG documentation. The Investment Advice contains the investment allocation to an ESG theme and therefor the contribution to the Fund’s sustainable investment objective.
  2. The Fund reviews AAIS’s prepared investment advice during the monthly Investment Committee meeting. Key elements to review are, where relevant:
    – Sustainability policies at the level of the manager
    – Policies and sustainable investment guidelines for the fund
    – ESG integration in the investment process
    – ESG resources and capacity
    – Do no significant harm and good governance assessment
    – Contribution to impact target of underlying assets, including alignment with EU Taxonomy where relevant
    – Sensitivity to material ESG risk events
  3. The Fund Manager reviews AAIS’s ESG policy and due diligence process regularly.
  4. All investments and their contribution to the Fund’s sustainable objective are audited annually by an external third party. 

More details can be found in the Prospectus and Pre-Contractual Disclosure Document (Annex III)

Engagement

The Fund upholds the following approaches with regards to engagement with its investees: 

  1. Engagement with fund manager: The Fund engages with underlying fund managers, where relevant. Engagement can be done by Privium, ABN AMO Investment Services or both. Engagement topics are based on the sustainability assessment made on the fund. As the managers of the Fund’s investments are working to collect the PAI’s from their investments and projects, completeness and comparability of data is expected to deviate initially. Where data is found to be missing or insufficient in the underlying fund’s PAI reporting, the Fund will engage with the fund manager to remedy this. The Fund prioritizes the engagement topics by considering the applicability of the PAIs on the various impact themes in the portfolio.
  2. Voting: As a result of its investment, the Fund has gained voting rights for many of its holdings. The Fund Manager, on behalf of the Fund, fulfils its voting responsibility mostly by using the option to vote by proxy during annual general meetings and interim or special meetings called by its investments. Voting preparation (advice) and voting execution may in certain cases be outsourced to an external party. In principle, voting will occur in line with the Dutch corporate governance code and relevant international corporate governance codes. Proposed changes to an investment’s mandate, activities or targeted geographies are investigated with particular scrutiny as alignment with PSIF’s minimum criteria needs to be considered.
  3. Ongoing monitoring and divestment: All investments are monitored on an ongoing basis from both financial and sustainability point of view. During this monitoring PSIF could find that an investee has invested in assets which PSIF deems to have a negative contribution to the sustainable investment objective, no longer passes the do no significant harm screening or no longer displays good governance. This could happen for instance as a fund broadens its investment mandate or acquires an asset with intention to strip out the non-sustainable assets in due course. When a sustainability issue is detected, PSIF engages with the investment manager or issuer to a) understand the reason for deterioration of the sustainability profile and decide if this is expected to stay, increase or decrease over time, b) investigate what actions are planned/can be taken to improve, c) give input where relevant to help improve. If the sustainability profile is not expected to improve within a set timeframe, PSIF will divest the position.   

More details can be found in the PAI Report 

Attainment of the sustainable investment objective
The Fund does not compare its impact performance to a benchmark or index but instead reports its contribution to the SDG’s both quantitatively and qualitatively. 

 

Aescap Life Sciences

Aescap Life Sciences aims to gain value by investing in publicly traded shares of biopharmaceutical and life sciences companies and potentially also diagnostics and/or medical device companies. The Fund’s objective is to make an average minimum annual net return (after deduction of costs) of 20%+ over the mid-term (4-5 years). It will typically invest in companies with the potential to (more than) double their share price over a period of maximum 4-5 years. Given the particular innovation power in biotech in Western Europe and North America most investments will be made in these geographical areas. The Fund has a focused portfolio, investing in approximately 20 companies. Within this focus it will ensure that the portfolio is diversified over different diseases, development phases and geographical areas.  

 Aescap Life Sciences leverages its highly specialized team of analysts and its position as a long-standing and concentrated investor in the biotechnology sector to deeply understand its potential investee companies from both a financial and ESG perspective.  

Summary
Aescap Life Sciences (“The Fund”) aims to gain value by investing in publicly traded shares of biopharmaceutical companies and potentially also diagnostics and/or medical device companies. The Fund’s objective is to make an average minimum annual net return (after deduction of costs) of 20%+ over the mid-term. It will typically invest in companies with the potential to (more than) double their share price over a period of maximum 4-5 years. 

Next to the goal of creating a financial return for investors, the Fund also promotes a social characteristic. The main focus of the Fund’s investments is in researching, developing, or producing treatment/solutions for diseases with a high unmet medical need. A high unmet medical need has been defined as diseases that are characterized by an (inadequacy of) available treatments, which severely impact the patient and the healthcare system, prevalent in the geographies the company currently markets or plans to market or distribute its current or future product(s). 

The Fund aims to construct a portfolio of approximately 20 investee companies that contribute to the social characteristic, and of which a minimum proportion of 30% (of the invested capital of the Fund) are considered sustainable investment. Invested capital is the Fund Assets, excluding cash. 

Next to establishing which sustainability risks are considered material for each investee company based on the Sustainability Accounting Standards Board (“SASB”), the Fund also analyses the investee companies’ preparedness to these sustainability risks as part of the due diligence process. The Fund takes the Principe Adverse Impact (“PAI”) indicators into account to determine if an investment can be considered sustainable. It investigates the processes and policies of any potential investment on environmental and social risks in the biotechnology sector as defined by the SASB and by the PAI indicators. 

Monitoring of investee companies regarding their Environmental, Social and Governance (“ESG”) performance happens monthly based on sustainability risks, investment allocation towards to the social characteristic and the proportion of the investments determined as sustainable. 

The Fund engages with investee companies to improve their, ESG performance through engagement. Engagement can consist of meetings with management, data requests to investor relations to improve the policies and practices or formal voting of the investee companies when considered necessary. 

Reporting happens on a monthly and quarterly occasion with updates on the financial returns. The Fund publishes an annual engagement report highlighting the engagement activities of the Portfolio Manager as well as any changes in policies and practices of the investee companies. 

No sustainable investment objective 
This financial product promotes a social characteristic, but does not have as its objective sustainable investment. The Fund aims to have a minimum proportion of 30%  of sustainable investments that contribute to the social characteristic.

  1. The Fund will, in determining the 30% proportion of sustainable investments, take the PAI indicators into account. It investigates the processes and policies of any potential investment on  environmental and social issues in the biotechnology sector as defined by the SASB and by the PAI indicators.   
    Which risks are material to the Fund and its investments is outlined in detail on the Fund’s website (Link to aescap.com/). In addition, the Fund excludes potential investments with a history of poor performance on sector best practice that have insufficient policies or that has insufficient plans to improve in their social and environmental impact.  
    The fund has prioritized he PAI indicators into “very important” and “important”, respectively based on their relevancy to the biotechnology sector and the specific areas where a company is most likely to do significant harm. Two of the mandatory PAI indicators are not deemed relevant for the companies within the scope of investment of the fund. The Fund’s PAI statement, available on its website, contains a detailed explanation of the PAIs considered. If the fund deems an investment is at risk of having a negative impact/doing significant harm on more than 1 of the very important indicators or on 5 or more of the important indicators, then the investment cannot be classified as sustainable. It may still contribute to the fund’s social characteristic, however.
  2. Each analysis includes a scan for violations of the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights for processes and compliance mechanisms that each investment needs to have.  

Please find more details in the Pre-Contractual Disclosure Document (Annex II)

Environmental or social characteristics of the financial product
In addition to the Fund’s financial aim to gain value by investing in publicly traded shares of biopharmaceutical, diagnostics and/or medical device companies, it also promotes a social characteristic. The Fund’s main focus of the investments are in researching, developing, or producing treatment/solutions for diseases with a high unmet medical need. 

The Aescap investment team considered the heterogeneity behind this notion and defined that these types of diseases (for example Alzheimer’s Disease, Arthrosis, Diabetes, Multiple Sclerosis, Obesity, Cancer, Parkinson’s Disease) are characterized by:  

  • the inadequacy of available treatments
  • aseverity of impact on the patient
  • and on the healthcare system in the geographies the company currently markets or plans to market or distribute its current or future product(s). 

The Fund believes the inadequacy in these three items encompass what an unmet medical need is in the biopharmaceutical industry.  

Please find more details in the Pre-Contractual Disclosure Document (Annex II)

Investment strategy
The Fund aims to gain value by investing in publicly traded shares of biopharmaceutical and life sciences companies and potentially also diagnostics and/or medical device companies. The Fund’s objective is to make an average minimum annual net return (after deduction of costs) of 20%+ over the mid-term (4-5 years). It will typically invest in companies with the potential to (more than) double their share price over a period of maximum 4-5 years. Given the particular innovation power in biotech in Western Europe and North America most investments will be made in these geographical areas. The Fund has a focused portfolio, investing in approximately 20 companies. Within this focus it will ensure that the portfolio is diversified over different diseases, development phases and geographical areas.  

The Fund’s investment team has a deep knowledge of the biotechnology sector and the ability to understand investee companies from both a financial and ESG perspective. 

 The ESG evaluation includes a Good Governance analysis, determining the intended investment’s preparedness to deal with material governance risks identified by SASB. If an intended investment is found to have a low average preparedness on any of the material governance risks investigated, the Fund may include the investment in its portfolio and start an engagement project to improve its preparedness.  

More details can be found in the Prospectus

Proportion of investments
The Fund aims to select as much of its portfolio as possible to be aligned with its social characteristic, and targets a minimum of 30% of the Fund’s invested capital. This consists of: 

  • listed shares of biopharmaceutical companies and potentially also diagnostics and/or medical device companies.  
  • warrants of such companies. Often these warrants are received as part of an equity issue by a company. 

 Other fund holdings may be: 

  • Cash: the Fund may hold cash freely available for investment or cash for portfolio management purposes.  
  • Borrowings: the Fund may temporarily borrow (no longer than one month) up to 10% of its NAV for portfolio management purposes or to benefit from an investment opportunity.   
  • Non-aligned assets: holdings whose activities do not contribute to the social characteristic of the fund. For non-aligned assets, at minimum a material ESG risk analysis based on the standards of the SASB is performed. 

More details can be found in the Prospectus

Monitoring of environmental or social characteristics
The Fund has determined that an investment that contributes to the Fund’s promotion of social characteristic needs to be an investment that is researching, developing, or producing treatment diseases with a high unmet medical need. The Fund will analyse per investee company what percentage of their activities is related to developing drugs for diseases with high unmet medical need. 

The Fund monitors the attainment of the social characteristic: 

  • Monthly monitoring of investment allocation towards the Fund’s social characteristic with the percentage of investee companies researching, developing or producing treatment for diseases with a high unmet medical need 
  • Monthly overview of the Fund’s exposure to sustainability risks are reviewed and discussed in the monthly meetings. 
  • Progress on ESG best-practice engagement following a sustainable investment strategy 

The Fund reports the attainment of the social characteristic it promotes: 

  • annually on the percentage of investee companies researching, developing, or producing treatment for diseases with a high unmet medical need 
  • annually on the engagement priorities with investee companies using the findings from the ESG material risk analysis and Do No Significant Harm analysis. 

The companies the Fund invests in should not only have strong financials, good management and comply with the regulations, but they should also continue to improve their ESG performance wherever possible. The Portfolio Manager has a long history of investing in- and engaging with biotech companies. Engagement with small-cap companies can be very effective and can have a concrete and direct impact on their policies and practices.  

Please find more details in the Pre-Contractual Disclosure Document (Annex II)

Methodologies for environmental or social characteristics 
The Fund uses the following methodologies to measure how investments contribute to the social characteristic of the fund: 

  1. The Fund applies the Materiality Map of the SASB to determine which sustainability risks are material to consider in the investment decision-making process. SASB has identified more than 25 sustainability risks divided across the E, S, and G topics. Dependent on the economic sector the investment is active in, these risks are marked either 1) not material, 2) not likely material, 3) likely material. For a risk to be classified as likely material, SASB has found that for over 50% of the companies active in that sector, the risk has a significant impact on the financial position or operational activities. The Fund will provide an analysis based on policies, practices, and incidents to determine if the investee company has a low, average or high estimated sensitivity of the value of the investment to material sustainability risks. 
  2. The Fund determines if a company qualifies to contribute to the attainment of the Fund’s social characteristic if: 
    1. For a company with product(s) on the market that has been profitable in the past 3 years: 
      ≥ 50% of the products it markets are aimed at treating diseases with a high unmet medical need
    2. For an unprofitable company with product(s) on the market or for a company without product(s) on the market: 
      ≥ 50% of its pipeline programs and products on the market are aimed at treating diseases with a high unmet medical need 

If a company qualifies, then the actual percentage of pipeline programs and/or products on the market addressing a high unmet medical need will be used in the calculation of how much of fund’s assets under management (“AUM”) is contributing to this characteristic, proportionate to that company’s weight in the portfolio. If a company does not qualify, then it counts for 0% to the fund’s calculation of AUM contribution to the high unmet need goal. 

Please find more details in the Pre-Contractual Disclosure Document (Annex II)

Data sources and processing 
The Fund uses data for the following purposes: 

  • Sourcing of the investee companies 
  • Monitoring the sustainability risks 
  • Reporting on PAI indicators and engagement activities 

Data used and processed by the Fund to attain the social characteristic and report on PAI indicators are as follows: 

  1. Sources: Publicly available investee company data financials, company policies, annual reports and ESG ratings from external entities. PAI indicators data requested by the Fund to the investee company
  2. Data quality:  
    An investment candidate needs to be willing to communicate and/or share information regarding the relevant topics and risk factors for the fund ESG policy (e.g. SASB, PAI). The investee company cannot be responsible for inadequate disclosure of defects of safety issues relating to one or more of its products.
  3. Data processing: the Fund processes data from investee companies via a software provider, checks the received data and does not process data beyond preparing investor communications with data received at a. 

Limitations to methodologies and data
The Fund expects limitations to occur with the current methodologies and data collection as all small cap investee companies are transitioning to new reporting methods required under the Sustainable Finance Disclosure Regulation (SFDR). As the financial services industry matures, the availability of data related to sustainability, the Fund’s methodology and data sources is expected to evolve

Due diligence
The Fund follows the below investment processes, including due diligence: 

  1. Sector coverage: all securities in the biotechnology sector reviewed annually with research, screening, data analysis, information gathered in the field. 
  2. Identification of Edge vs market: Using proprietary financial models as the basis of the Fund’s expectation for a company the teams review companies in the pipeline quarterly against market expectation.
  3. Investment thesis construction: Securities reviewed monthly to map to which extent they fit into the Fund’s portfolio. A review regarding the contribution to the Fund’s social characteristic is part of this analysis.
  4. Constant monitoring: after the team has reached their conviction regarding a security an investment decision is made by the Portfolio Manager. Findings from the ESG material risk analysis and Do No Significant Harm analysis are combined to inform the engagement priorities for a portfolio company.
  5. All investments and their contribution to the Fund’s social characteristic are audited annually by an external third party.  

Please read more details in the Prospectus

Engagement policies 
The Fund upholds the following approaches with regards to engagement with its investee companies: 

  1. Indicator to monitor if an investee company contributes to the social characteristic: the investee company the Fund invests in should not only have strong financials, good management but they should also continue to improve their ESG performance wherever possible. On an ongoing basis, the sustainability risk analyses for the investments of the Fund are reviewed and updated if and when applicable. Material changes to the individual sustainability risks of an investment are not expected to occur often. In addition, the Fund excludes potential investments with a history of poor performance on sector best practice that have insufficient policies or that has insufficient plans to improve in their social and environmental impact.
  2. Voting: As an active investor, the Fund regularly engages with companies on a wide range of topics, including ESG and other factors related to investment fundamentals. Through its regular monitoring and screening activities engagement is initiated when the Fund identifies a concern. The Fund engages with an investee company through meetings/calls with the company’s management or Chairperson, email communications with investor relations or company representatives on specific matters, company site visits, interactions with external industry experts or other industry participants and action through formal voting when we deem it necessary.  

Progress on the portfolio’s ESG performance and the Fund’s engagement activities is reported on in the Fund’s annual engagement report.  

Please read more details in the PAI Statement

Designated reference benchmark 
The Funddoes not compare its ESG performance to abenchmarkor index.

Reporting

Prospectus

Key Information Document

Forms

Aescap Genetics​

Aescap Genetics invests in the shares of publicly listed genetics biotech / life sciences companies. It invests in highly innovative companies that develop and market new genetics medical treatments such as gene, RNA and cell therapies. It can to a limited extent also invest in companies that develop and market medical genetics diagnostics. The companies are active in the concept of precision medicine. The concept of precision medicine is based on the fact that people respond differently to the same treatment. Based on gene profiling and biomarker data a patient can be given the right treatment from the start

Aescap Genetics will typically construct a focused portfolio, investing in approximately 18 companies with the potential to (more than) double their share price over a period of maximum 4-5 years. It aims to make investments in companies located globally, but most investments are likely to be made in companies located in Europe and Northern America given the innovation power in biotech in these markets. 

Summary
Aescap Genetics (“The Fund”) aims to gain value by investing in publicly traded shares of genetics biotech / life sciences companies. It invests in highly innovative companies that develop and market new genetics medical treatments such as gene, RNA and cell therapies. It can to a limited extent also invest in companies that develop and market medical genetics diagnostics. The Fund’s objective is to make an average minimum annual net return (after deduction of costs) of 20%+ over the mid-term. It will typically invest in companies with the potential to (more than) double their share price over a period of maximum 4-5 years. 

Next to the goal of creating a financial return for investors, the Fund also promotes a social characteristic. The main focus of the Fund’s investments is in researching, developing, or producing treatment/solutions for diseases with a high unmet medical need. A high unmet medical need has been defined as diseases that are characterized by an (inadequacy of) available treatments, which severely impact the patient and the healthcare system, prevalent in the geographies the company currently markets or plans to market or distribute its current or future product(s). 

The Fund aims to construct a portfolio of approximately 18 companies that contribute to the social characteristic, and of which a minimum proportion of 30% (of the invested capital of the Fund) are considered sustainable investment. Invested capital are the Fund Assets, excluding cash. 

Next to establishing which sustainability risks are considered material for each investee company based on the Sustainability Accounting Standards Board (“SASB”), the Fund also analyses the investee companies’ preparedness to these sustainability risks as part of the due diligence process. The Fund takes the Principe Adverse Impact (“PAI”) indicators into account to determine if an investment can be considered sustainable. It investigates the processes and policies of any potential investment on common environmental and social risks in the biotechnology sector as defined by the SASB and by the PAI indicators.

Monitoring of investee companies regarding their Environmental, Social and Governance (“ESG”) performance happens monthly based on sustainability risks, investment allocation towards to the social characteristic and the proportion of the investments determined as sustainable. 

The Fund engages with investee companies to improve their, ESG performance through engagement. Engagement can consist of meetings with management, data requests to investor relations to improve the policies and practices or formal voting of the investee companies when considered necessary. 

Reporting happens on a monthly and quarterly occasion with updates on the financial returns. The Fund publishes an annual engagement report highlighting the engagement activities of the Portfolio Manager as well as any changes in policies and practices of the investee companies. 

No sustainable investment objective 
The Fund, promotes environmental or social characteristic, but does not have as its objective sustainable investment. The Fund aims to have a minimum proportion of 30%  of sustainable investments that contribute to the social characteristic.

  1. The Fund will, in determining the 30% proportion of sustainable investments, take the PAI indicators into account. It investigates the processes and policies of any potential investment on environmental and social issues in the biotechnology sector as defined by the SASB and by the PAI indicators. Which risks are material to the Fund and its investments is outlined in detail on the Fund’s website. In addition, the Fund excludes potential investments with a history of poor performance on sector best practice that have insufficient policies or that has insufficient plans to improve in their social and environmental impact.  
    The fund has prioritized the PAI indicators into “very important” and “important”, respectively based on their relevancy to the biotechnology sector and the specific areas where a company is most likely to do significant harm. Two of the mandatory PAI indicators are not deemed relevant for the companies within the scope of investment of the fund. The Fund’s PAI statement, available on its website, contains a detailed explanation of the PAIs considered. If the Fund deems an investment is at risk of having a negative impact/doing significant harm on more than 1 of the very important indicators or on 5 or more of the important indicators, then the investment cannot be classified as sustainable. It may still contribute to the fund’s social characteristic, however. 
  2. Each analysis includes a scan for violations of the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights for processes and compliance mechanisms that each investment needs to have.  

More details in the PAI Statement and the Pre-Contractual Disclosure Document (Annex II)

Environmental or social characteristics of the financial product
In addition to the Fund’s financial aim to gain value by investing in publicly traded shares of biopharmaceutical, diagnostics and/or medical device companies, it also promotes a social characteristic. The focus of the Fund’s investments are in researching, developing and/or producing treatment/solutions for diseases with a high unmet medical need.  

The Aescap investment team considered the heterogeneity behind this notion and defined that these types of diseases (for example Alzheimer’s Disease, Arthrosis, Diabetes, Multiple Sclerosis, Obesity, Cancer, Parkinson’s Disease) are characterized by:  

  • inadequacy of available treatments 
  • severity of impact on the patient
  • severity of impact on healthcare system in the geographies the company currently markets or plans to market or distribute its current or future product(s). 

The Fund believes the inadequacy in these three items encompass what an unmet medical need is in the biopharmaceutical industry.  

More details in the Pre-Contractual Disclosure Document (Annex II)

Investment strategy
The Fund invests in the shares of publicly listed genetics biotech / life sciences companies. It invests in highly innovative companies that develop and market new genetics medical treatments such as gene, RNA and cell therapies. It can to a limited extent also invest in companies that develop and market medical genetics diagnostics. The investee companies are active in the concept of precision medicine. The concept of precision medicine is based on the fact that people respond differently to the same treatment. Based on gene profiling and biomarker data a patient can be given the right treatment from the start. Investee companies can also contribute to the Fund’s social characteristic: investing in companies researching, developing, or producing treatment/solutions for diseases with a high unmet medical need. 

The Fund will typically construct a focused portfolio, investing in approximately 18 companies with the potential to (more than) double their share price over a period of maximum 4-5 years. It aims to make investments in companies located globally, but most investments are likely to be made in companies located in Europe and Northern America given the innovation power in biotech in these markets. 

The Fund’s investment team has a deep knowledge of the biotechnology sector and the ability to understand investee companies from both a financial and ESG perspective. 

The ESG evaluation includes a Good Governance analysis, determining intended investment’s preparedness to deal with material governance risks identified by SASB. If an intended investment is found to have a low average preparedness on any of the material governance risks investigated, the Fund may include the investment in its portfolio and start an engagement project to improve its preparedness.  

More details can be found in the Prospectus

Proportion of investments 
The Fund aims to select as much of its portfolio as possible to be aligned with its social characteristic, and targets a minimum of 30% of the Fund’s invested capital. This consists of: 

  • listed shares of biopharmaceutical companies and potentially also diagnostics and/or medical device companies.  
  • warrants of such companies. Often these warrants are received as part of an equity issue by a company. 

Other fund holdings may be: 

  • Cash: the Fund may hold cash freely available for investment or cash for portfolio management purposes.  
  • Borrowings: the Fund may temporarily borrow (no longer than one month) up to 10% of its NAV for portfolio management purposes or to benefit from an investment opportunity.   
  • Non-aligned assets: holdings whose activities do not contribute to the social characteristic of the fund. For non-aligned assets, at minimum a material ESG risk analysis based on the standards of the SASB is performed. 

More details can be found in the Prospectus

Monitoring of environmental or social characteristics 
The Fund has determined that an investment that contributes to the Fund’s promotion of social characteristic needs to be an investment that is researching, developing, or producing treatment diseases with a high unmet medical need. The Fund will analyse per investee company what percentage of their activities is related to developing drugs for diseases with high unmet medical need. 

The Fund monitors the attainment of the social characteristic: 

  • Monthly monitoring of investment allocation towards the Fund’s social characteristic with the percentage of investee companies researching, developing or producing treatment for diseases with a high unmet medical need 
  • Monthly overview of the Fund’s exposure to sustainability risks are reviewed and discussed in the monthly meetings. 
  • Progress on ESG best-practice engagement following a sustainable investment strategy 

The Fund reports the attainment of the social characteristic it promotes: 

  • annually on the percentage of investee companies researching, developing, or producing treatment for diseases with a high unmet medical need 
  • annually on the engagement priorities with investee companies using the findings from the ESG material risk analysis and Do No Significant Harm analysis. 

The companies the Fund invests in should not only have strong financials, good management and comply with the regulations, but they should also continue to improve their ESG performance wherever possible. The Portfolio Manager has a long history of investing in- and engaging with biotech companies. Engagement with small-cap companies can be very effective and can have a concrete and direct impact on their policies and practices.  

More details in the Pre-Contractual Disclosure Document (Annex II)

Methodologies for environmental or social characteristics 
The Fund uses the following methodologies to measure how investments contribute to the social characteristic of the fund: 

  1. The Fund applies the Materiality Map of the SASB to determine which sustainability risks are material to consider in the investment decision-making process. SASB has identified more than 25 sustainability risks divided across the E, S, and G topics. Dependent on the economic sector the investment is active in, these risks are marked either 1) not material, 2) not likely material, 3) likely material. For a risk to be classified as likely material, SASB has found that for over 50% of the companies active in that sector, the risk has a significant impact on the financial position or operational activities. The Fund will provide an analysis based on policies, practices, and incidents to determine if the investee company has a low, average or high estimated sensitivity of the value of the investment to material sustainability risks. 
  2. The Fund determines if a company qualifies to contribute to the attainment of the Fund’s social characteristic if: 
    1. For a company with product(s) on the market that has been profitable in the past 3 years: 
      ≥ 50% of the products it markets are aimed at treating diseases with a high unmet medical need 
    2. For an unprofitable company with product(s) on the market or for a company without product(s) on the market: 
      ≥ 50% of its pipeline programs and products on the market are aimed at treating diseases with a high unmet medical need 
  3. If a company qualifies, then the actual percentage of pipeline programs and/or products on the market addressing a high unmet medical need will be used in the calculation of how much of fund’s assets under management (“AUM”) is contributing to this characteristic, proportionate to that company’s weight in the portfolio. If a company does not qualify, then it counts for 0% to the fund’s calculation of AUM contribution to the high unmet need goal.

Please find more details in the PAI Statement

Data sources and processing
The Fund uses data for the following purposes: 

  • Sourcing of the investee companies 
  • Monitoring the sustainability risks 
  • Reporting on PAI indicators and engagement activities 

Data used and processed by the Fund to attain the social characteristic and report on PAI indicators are as follows: 

  1. Sources: Publicly available investee company data financials, company policies, annual reports and ESG ratings from external entities. PAI indicators data requested by the Fund to the investee company
  2. Data quality:  
    An investment candidate needs to be willing to communicate and/or share information regarding the relevant topics and risk factors for the fund ESG policy (e.g. SASB, PAI). The investee company cannot be responsible for inadequate disclosure of defects of safety issues relating to one or more of its products. 
  3. Data processing: the Fund processes data from investee companies via a software provider, checks the received data and does not process data beyond preparing investor communications with data received at a. 

Limitations to methodologies and data  
The Fund expects limitations to occur with the current methodologies and data collection as all small cap investee companies are transitioning to new reporting methods required under the Sustainable Finance Disclosure Regulation (SFDR). As the financial services industry matures, the availability of data related to sustainability, the Fund’s methodology and data sources is expected to evolve. 

Due diligence
The Fund follows the below investment processes, including due diligence: 

  1. Sector coverage: all securities in the biotechnology sector reviewed annually with research, screening, data analysis, information gathered in the field. 
  2. Identification of Edge vs market: Using proprietary financial models as the basis of the Fund’s expectation for a company the teams review companies in the pipeline quarterly against market expectation.
  3. Investment thesis construction: Securities reviewed monthly to map to which extent they fit into the Fund’s portfolio. A review regarding the contribution to the Fund’s social characteristic is part of this analysis.
  4. Constant monitoring: after the team has reached their conviction regarding a security an investment decision is made by the Portfolio Manager. Findings from the ESG material risk analysis and Do No Significant Harm analysis are combined to inform the engagement priorities for a portfolio company.
  5. All investments and their contribution to the Fund’s social characteristic are audited annually by an external third party.  

More details can be found in the Prospectus

Engagement policies
The Fund upholds the following approaches with regards to engagement with its investee companies: 

  1. Indicator to monitor if an investee company contributes to the social characteristic: the investee company the Fund invests in should not only have strong financials, good management but they should also continue to improve their ESG performance wherever possible. On an ongoing basis, the sustainability risk analyses for the investments of the Fund are reviewed and updated if and when applicable. Material changes to the individual sustainability risks of an investment are not expected to occur often. In addition, the Fund excludes potential investments with a history of poor performance on sector best practice that have insufficient policies or that has insufficient plans to improve in their social and environmental impact.
  2. Voting: As an active investor, the Fund regularly engages with companies on a wide range of topics, including ESG and other factors related to investment fundamentals. Through its regular monitoring and screening activities engagement is initiated when the Fund identifies a concern. The Fund engages with an investee company through meetings/calls with the company’s management or Chairperson, email communications with investor relations or company representatives on specific matters, company site visits, interactions with external industry experts or other industry participants and action through formal voting when we deem it necessary.  

Progress on the portfolio’s ESG performance and the Fund’s engagement activities is reported on in the Fund’s annual engagement report.  

Please find more details in the PAI Statement

Designated reference benchmark 
The Funddoes not compare its ESG performance to abenchmarkor index.

Windmill Trend Evolution Fund (WTEF)

The Fund’s objective is to achieve medium-term capital gains for it investors. Windmill does that by primarily investing in trend-following funds mainly focussed on innovative systematic strategies that invest outside the mainstream markets. However, the Fund may invest in non trend- following strategies as well.

Guardian Fund

The Guardian Fund aims to achieve capital growth through the long-term equity ownership of several listed businesses. The fund invests long term in a concentrated portfolio of listed equity instruments issued by public companies around the world. The investment team select listed equity instruments of technology companies and particularly technology enabling companies. The investment team believes that every winner in any industry needs to be data-driven and have superior software in its core. The Fund invests in companies that are working towards exponential growth and the investment team selects diligently via their Investment Criteria.

Knight Tech Fund

The Knight Tech Fund aims to achieve achieve capital growth through the long-term equity ownership of several listed businesses. To achieve this objective, the investment policy of the Fund is to predominantly invest in a concentrated portfolio of listed equity instruments issued by public companies around the world which meet the Investment Criteria. It is expected that the Fund’s portfolio will consist of around 15 publicly traded investments. The Fund may invest up to 20% of the Fund’s net asset value in unlisted equities. The investment team selects equity instruments of technology companies and particularly technology enabling companies. The investment team believes that every winner in any industry needs to be data-driven and have superior software in its core. The Fund invests in companies that are working towards exponential growth and the investment team selects diligently via their Investment Criteria.

Savin Multi-Strategy Arbitrage Fund

Savin Multi-Strategy Arbitrage Fund’s objective is to achieve a multi-year average annual return of 8%, net of fees with a volatility that is expected to be lower than equity markets and with a correlation to equity markets that is expected to be low (expected to be <0,3 on a multi-year time frame). To achieve this the strategy of the Fund is to employ complementary arbitrage strategies.
Market neutrality is to be achieved through hedging of residual risk factor exposure to equities, interest rates, credit and commodities. Daily and ad hoc stress tests and other risk management processes are conducted to maintain our objective.

Reporting

Prospectus

Key Information Document

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Principia Fund

Principia aims to earn a higher long- term return than the average of the world’s developed equity markets, as represented by the iShares MSCI World UCITS ETF. The investment philosophy is value oriented. Investments are selected after implementing detailed fundamental research, with the objective of finding opportunities where there is a large discrepancy between price and intrinsic value. The Fund will likely differ materially from the performance benchmark in order to achieve its objective. 

Global Allocation Fund

Still Equity Fund (SEF)

The Fund employs a disciplined value approach to select stocks of companies that are poorly covered by the sell-side analyst community. This lack of coverage may result in poor investor understanding of the investment case and mispricing of the company stock. This approach is research intensive and Fund assets will be concentrated in 15 to 20 high conviction positions. Risk is identified not in terms of volatility or index deviation but is a function of overpaying or overestimating a company’s prospects. The Fund employs a high degree of conservatism on both these fronts. The Fund will invest primarily but not exclusively in European listed securities and retains the flexibility to opportunistically hedge against general market declines. The fund may also hold cash as a natural market hedge. The Fund is actively managed.

Strategy One Fund

Strategy One Fund has a three to five year investment horizon. The Fund invests in a mixture of stocks, bonds and funds that are diversified amongst themselves. The investment allocation has two main characteristics: firstly, allocation is fairly dynamic among asset classes in an attempt to capture opportunities that emerge periodically. The second feature is a clear preference to fund managers that have been known to the team for many years. Due to the longstanding relationship with some of these managers and the economies of scale, Strategy One Fund has an opportunity to invest in funds and shareclasses that are not open to most private investors, saving the unit holder considerable costs.

Westermeerwind Aandelenfonds

Het  Westermeerwind Aandelenfonds heeft als doel Participanten mee te laten delen in de door het Windpark te behalen rendementen op een vergelijkbare wijze als de andere (indirecte) aandeelhouders in het Windpark. Het rendement op de Participaties zal grotendeels afhankelijk zijn van de rendementen van het Windpark. Het Fonds verwacht een rendement van acht tot tien proces per jaar te halen over de gehele looptijd van het fonds. De Participaties zijn voorbehouden aan omwonenden van het Westermeerwind windpark. 

Westermeerwind Leningenfonds

Het Westermeerwind Leningenfonds heeft als doel Participanten mee te laten delen in de opbrengsten van het Windpark door middel van het verstrekken van de Lening. Uitkering op de Participaties kan (onder meer) afhankelijk zijn de van rendementen van het Windpark. Het fonds verwacht een rendement van zes procent per jaar te behalen over de gehele looptijd van het Fonds. 

 

Supermarkt Vastgoed Fonds (SVG)

Het Supermarkt Vastgoed fonds is gevormd in 2012 en heeft tot doel het exploiteren van haar vastgoedportefeuille per 31 december 2020 bestaande uit 41 winkelpanden hoofdzakelijk in gebruik als supermarkt teneinde de participanten in het fonds in de opbrengst daarvan te doen delen. Het fonds heeft per balansdatum twee hoofdhuurders te weten Ahold en Coop.

Dutch Mezzanine Fund IV

The Dutch Mezzanine Fund‘s objectives are to achieve long-term capital appreciation through privately negotiated investments primarily in mezzanine securities, for the purpose of achieving an attractive return on Investments. Mezzanine is a hybrid form of capital which is subordinated to senior (bank) debt and ranks ahead of a borrower’s equity.

Fund IV follow the success of Fund I, II, III where the investment team is consistent in investment strategy but with a broader geographical reach, investing in both the Netherlands and Germany.

Key Information Document

Please read and accept the following disclaimer

Please read and accept the following disclaimer

This website does not constitute an offer or solicitation to buy any of the funds mentioned, if:

  • you are in a jurisdiction where this would be unlawful
  • it is unlawful to make an offer to a certain type of investor

Do not run any unnecessary risk. Read the Fund Documents (Prospectus, Terms & Conditions and Key Information Document (KID)). Past performance is not indicative for future results. The value of investments and any income generated may go down as well as up and is not guaranteed.

Investors should further perform their own due diligence.

The information on this website does not constitute any investment, tax, legal or other advice. Privium Fund Management B.V. does not warrant the accuracy, adequacy or completeness of the information and materials contained on this website and expressly disclaims liability for errors or omissions in such information and materials. 

US Investors

Our funds are not available for distribution to or investment by US investors. The funds are not registered under the United States Securities Act of 1933 or the United States Investment Company Act of 1940. Therefore, we cannot directly or indirectly offer or sell them in the US, in any of its states, territories, or possessions, in other areas subject to the US’s jurisdiction or to a US individual.

For those investors investing on behalf of an underlying investor

We will treat you as an investor who generally invests on behalf of underling clients.  It is your responsibility to provide the most recent KID to the underlying client for each investment you make on their behalf. 

Applicable law

Dutch law applies to this disclaimer.

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