Non-reporting on the unfavorable impacts on investment solutions and advice on the factors on sustainability
Declaration of the Management Board "EF Asset Management" AD, that it does not report the unfavorable impacts on their own investment solutions and advice on the factors on sustainability
EF Asset Management AD does not take into account the adverse impacts of investment decisions and advice on sustainability factors, in the following cases:
- The funds that the company manages.
- The portfolios of clients with whom the Company has concluded a contract for the management of portfolios of financial instruments.
- In the process of providing investment advice (consultations).
The reasons for not taking into account the adverse impacts of investment decisions and advice on sustainability factors at this time are as follows:
- As of the date of this document, the reporting of the adverse impacts of investment decisions and advice on sustainability factors will lead to a limitation of the possibility of achieving better profitability and diversification for trust management clients and for investors in actively managed CIS and AIFs; The Company has not identified increased demand from investors for whom the reporting of the adverse impacts of investment decisions and advice on sustainability factors is a priority and takes precedence over good diversification of risk and profitability from investments. In case of reporting a reverse trend, the Company will take actions to report the adverse impacts of investment decisions on sustainability factors;
- When providing services, the Company is guided by acting in the best interest of the client, taking into account his risk profile and investment strategy. Failure to comply with these principles and specifics may result in claims against the Company for lost profits as a result of incorrectly made or not made investment decisions or advice provided. The potential effect of possible lost profits as a result of decisions made or advice provided for investments in the so-called more sustainable products should be quantitatively determined through statistical analysis in order to comply with the investment policy and risk profile of the relevant Mutual Fund, respectively portfolio of financial instruments, and achieve its goals for an optimal return/risk ratio;
- The accounting of the adverse impacts of investment decisions on sustainability factors within the meaning of Art. 4 of Regulation (EU) 2019/2088 will result in significant resource costs (human, managerial and financial) for the company, without leading to any expected and measurable increase in revenues in the medium and even long term. The costs of technical and software support for the accounting of ESG factors exceed many times the possible benefits for investors in view of the scale of the Company's activities. The priority of the Company's management is to ensure its financial stability, capital adequacy and profit operation. In this sense, the accounting of the adverse impacts of investment decisions and advice on sustainability factors is not compatible with these objectives at this stage;
- Inability for ESG data to be provided by all public companies in a comparable format that facilitates data processing;
- The process of developing and adopting a single European legal framework for the disclosure of information on sustainability factors and risks continues.
Date of update and publication: 20.06.2024