I. LFIS Vision UCITS – Quant Global Allocation ("The Sub-Fund")
Summary :
- No sustainable investment objective
This financial product promotes environmental or social characteristics, but does not have a sustainable investment objective.
- Environmental or social characteristics of the financial product
The Sub-Fund promotes certain environmental and social characteristics through its sub-strategies involving the use of ESG filters for its implemented exposures to equity markets on the one hand, with the objective of covering at least 25% of the Sub-Fund's total equity exposure, and for its investments implemented for liquidity management purposes on the other hand, with the objective of covering at least 25% of these investments.
Sustainability indicators:
The Sub-Fund promotes certain environmental and social characteristics through its sub-strategies risk-on strategies and diversifying investment strategies which implementation involve the use of ESG filters. The Sub-Fund seeks to incorporate environmental, social and governance (“ESG”) considerations:
- to its exposures implemented in respect of the equity markets, with a target of covering at least 25% of the total Sub-Fund equity exposures
- through the application of a proprietary ESG methodology (as further described below), in respect of exposures to single and/or baskets of equity stocks;
- and/or through the use of market indices implementing ESG considerations.
- to its investments implemented for liquidity management purposes, with a target of covering at least 25% of those investments
- through the application of a proprietary ESG methodology (as further described below), in respect of investments in money market and/or debts instruments issued by private issuers;
- and/or through the use of social and/or green bonds which comply with the principles set forth by the International Capital Market Association (available here: https://www.icmagroup.org/sustainable-finance/), e.g. based on ESG data provided by external data providers.
Sustainability Objectives:
The Sub-Fund does not commit to make sustainable investments in line with the EU Taxonomy Regulation criteria for environmentally sustainable economic activities. However, it cannot be excluded that some underlying investments are unintentionally aligned with the EU Taxonomy Regulation criteria for environmentally sustainable economic activities.
- Investment strategy
The investment strategy consists of exposure to or investment in asset classes belonging mainly to the European equity and debt markets, taking into account environmental, social and governance ("ESG") characteristics, as described in more detail below.
- Investment proportions
The Sub-Fund is exposed to :
-1/ Investments aligned with ESG characteristics through exposures implemented on equity markets, the objective being to cover at least 25% of the Sub-Fund's total equity exposure through
- the application of proprietary ESG methodology, with regard to exposure to individual equities and/or baskets of equities; and/or the use of market indices implementing ESG considerations.
- its investments implemented for liquidity management purposes, with the aim of covering at least 25% of these investments, through the application of proprietary ESG methodology with regard to investments in money market instruments and/or debt instruments issued by private issuers; and/or through the use of social and/or green bonds compliant with the principles set out by the International Capital Markets Association.
-2/ Other includes the remaining investments of the financial product that are neither aligned with environmental or social characteristics, nor qualified as sustainable investments.
- Control of environmental or social characteristics
The environmental or social characteristics promoted by the investment fund and the sustainability indicators used to measure the achievement of each of them are monitored throughout the fund's life cycle. Before carrying out an investment or divestment operation, the fund manager analyzes its impact on the environmental and social characteristics it promotes, and ensures that its commitments will be respected.
Secondly, the internal control department carries out an independent check on compliance with all commitments applicable to the fund, including extra-financial commitments.
- Methods applicable to environmental or social characteristics
The management company relies on existing tools for monitoring compliance with regulatory and statutory constraints to determine the extent to which the social or environmental characteristics promoted by the financial product have been achieved.
- Data sources and processing
The management company relies on data from external suppliers. In particular, the exposure of the equity portfolio to environmental and social characteristics is built up through derivatives listed on ESG indices, according to the method used by the sponsor of the selected index. The liquidity portfolio's investment in assets with environmental and social characteristics is mainly based on green bonds according to Bloomberg's extra-financial valuation method. This investment may be supplemented by subscriptions to money-market funds whose environmental and social characteristics are determined and assessed by the management company.
LFIS does not process the data used. The management company also reserves the right to use its own tools and methods to measure the social or environmental characteristics promoted by the fund.
- Limits to methods and data
The main limitations on the methods and data used by a fund to promote environmental and social characteristics concern the quality of issuer data and the way in which these characteristics are taken into account when the fund is exposed to derivative financial instruments.
- Due diligence
The fund's management company has extended its permanent ccontrol system to include a review of environmental and social commitments.
- Commitment policies
The commitment policy implemented by the fund management company promotes environmental and social characteristics. This policy is part of an approach that takes into account socially responsible investment criteria, as well as compliance with the European regulation on the publication of sustainability information. In addition to the commitments specific to this fund, it includes, like all funds managed by LFIS, a policy of excluding issuers associated with the production of controversial weapons. LFIS is also able to integrate sectoral exclusion policies (tobacco, thermal coal, etc.) into some of its investment strategies.
- Designated benchmark
Given the fund's investment strategy and its environmental and social commitments, LFIS has not designated a benchmark index.