To the extent possible, Nevastar adopts a sustainable approach in its daily activities and investment strategies, integrating sustainability risks.
A sustainability risk means an environmental, social or governance event or condition that, which if they occur have or may potentially have significant negative impacts on the assets, financial and earnings situation, or reputation of a supervised entity.
For Nevastar, taking into consideration sustainability risks means integrating ESG factors (as defined below) in its daily business for the benefit of its clients and overall, the financial system.
The ESG factors are the following:
Nevastar manages both undertakings for collective investments in transferable securities in accordance with the UCITS Law (the UCITS) and alternative investment funds in accordance with the AIFM Law (the AIFs).
In accordance with Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector (SFDR), Nevastar identifies and analyses sustainability risks as part of its risk management process. To the extent possible, Nevastar adopts a sustainable approach in its daily activities and investment strategies, integrating sustainability risks.
Consequent impacts to the occurrence of sustainability risk can be many and varied according to a specific risk, region or asset class. Generally, when sustainability risk occurs for an asset, there will be a negative impact and potentially a total loss of its value and therefore an impact on the net asset value of the concerned fund.
Although Nevastar aims in all its investment strategies to integrate ESG factors, there are different level of consideration given to sustainability risks depending on the strategy pursued which are further described in the pre-contractual documents of the funds in accordance with SFDR.
As of today, Nevastar is currently not in a position to consider principal adverse impacts of investment decisions on sustainability factors due to a lack of available and reliable data.
Some of our UCITS products have sustainable investment as objective, such as NSF SICAV – Climate Change +.
As further described in the prospectus of such funds, the investment selection generally follow two steps:
In order to achieve these objectives, Nevastar relies on data services providers. It has to be noted that, as of the date of this policy, there is currently no standardization hence the data provided by these data services providers vary in terms of the underlying methodologies to interpret the collected non-financial information of companies and in terms of underlying data elements themselves that data providers use to calculate the ESG ratings/scores per company.
Therefore, from time to time, Nevastar will cross-check the data of its service provider(s) (e.g. Bloomberg) to ensure that no significant difference exist between the respective rating provided for the same company, failing which, Nevastar proceeds with further investigation.
Although sustainability risks are taken into account in all Nevastar activities, some UCITS and AIFs managed by Nevastar do not per se consider ESG factors in the investment selection. Nevastar has identified and analysed sustainability risks for each fund based on ESG factors. Further to said analysis, Nevastar is of the opinion that sustainability risks and potential impacts on current portfolio of certain funds is not significant and hence will not significantly impact their returns. Therefore, at this stage, Nevastar considers sustainability risks to be irrelevant for these funds as currently other factors considered in the stock picking process overweigh this risk.
For further information concerning Nevastar sustainability approach, please contact us by email at email@example.com.