EU Sustainable Finance Disclosure Regulation (SFDR)

EU Sustainable Finance Disclosure Regulation: this section contains all documentation relating to Etica Funds.

Etica Funds was created in 2000 out of the conviction that also analysing issuers from an environmental, social and governance (“ESG”) perspective offers a longer-term view and potential added value in terms of return.

All the funds managed by Etica Sgr are classified as products that pursue an explicit sustainability objective as defined in Article 9 of EU Regulation 2019/2088 or as products that promote, among others, environmental and/or social characteristics in compliance with practice of good governance as defined in Article 8 of EU Regulation 2019/2088.

Sustainability objective of Etica’s funds

For the funds managed by Etica that qualify as products pursuant to Article 9 of Regulation 2088/2019 (SFDR) , the sustainability objective is set in terms of ESG Risk for Etica Azionario and Etica Bilanciato (or E risk, which is a specific case for Etica Transizione Climatica). In particular:

The sustainability objective pursued by the funds Etica Azionario and Etica Bilanciato belonging to the Linea Valori Responsabili consists of containing ESG Risk within a pre-defined limit according to the proprietary metric (implied theoretical maximum level).
The sustainability objective pursued by the Etica Transizione Climatica fund belonging to the the Linea Futuri Responsabili consists of containing E Risk within a pre-defined limit according to the proprietary metric (implied theoretical maximum level).

These are metrics based on the issuers’ sustainability scores that are capable of providing an overall assessment of their sustainability and that of their portfolios in the aggregate. The percent threshold for each fund is defined as a function of the degree of risk characteristic of the product.

The sustainability objective pursued by the Etica Obiettivo Sociale consists in respecting the minimum percentage of the portfolio invested in securities of corporate, governmental, FIA, or social bond issuers that meet the criteria defined in the Fund’s Prospectus and in the Sustainable and Responsible Investment Policy (published at this address).

Sustainable and Responsible Investment Policy

The Sustainable and Responsible Investment Policy follows an approach resting on five main pillars: ESG section, engagement and monitoring of issuers, assessment of ESG risk and measurement of impact generated.
Etica Funds has always integrated thorough assessment of sustainability risks based on a proprietary risk metric, ESG risk, into its selection and monitoring of issuers. This metric is used to assess the impacts of sustainability risk on the returns of its financial products by calculating and monitoring the various portfolios’ risk-adjusted performances in ESG terms over time.

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Principal Adverse Sustainability Impacts Statement

Etica Funds has always considered the principal adverse impacts of its investment decisions on sustainability factors (“Principal adverse sustainability impacts”).
The Principal Adverse Sustainability Impacts Statement is prepared in accordance with the provisions of SFDR, and applied transversally to all funds in the Etica System.

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Remuneration Policies and Practices

The document “Remuneration Policies and Practices” illustrates the remuneration policies of Etica Funds and is intended to ensure the utmost transparency with regard to the Company’s remuneration principles and mechanisms.