CRUX Global Fund - SFDR ESG Statement
This statement relates to EU SFDR Regulation 2019/2088 for the CRUX Global Fund.
As long-term stewards of our clients’ capital, CRUX Asset Management (“CRUX”) is committed to assessing the lasting profitability of the companies in which we invest. It is central to our investment process to analyse each investment’s ability to create and sustain long-term capital growth.
By taking an active approach towards sustainability risks, we aim to further protect our clients’ interests. As a long-term investor in a wide range of companies, sectors and countries, CRUX takes its responsibilities as both an asset owner and steward of client assets seriously. We believe our responsibilities include protecting the interests of our clients from the impacts of financial and non-financial risks.
CRUX has a well-established investment approach, which provides the foundation of our organisation and remains the fundamental reason why investors trust us with their assets. At the heart of our approach, CRUX seeks to deliver long-term capital growth through actively managed long-only equity portfolios. Our primary focus has always been ensuring that our fund managers are the best possible stewards of our clients’ assets, selecting each investment on their ability to create long-term sustainable returns at attractive valuations. Well-managed companies that look to the future are better positioned to navigate the risks and challenges inherent in business and achieve long-term value creation.
By taking an active approach towards sustainability risks, we aim to further protect our clients’ interests. While none of our funds has a specific ESG mandate, we believe that it is in the best interests of all stakeholders to consider ESG factors when deciding where and how we invest. We describe our investment methodology as an ESG-integrated approach. We believe it is our fiduciary duty to be aware of environment and broader sustainability risks , but do not place formal restrictions on our funds’ investment universe.
Pursuant to EU Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (the “SFDR”), the CRUX Global Fund Sub-Funds (“Sub-Funds”) are required to disclose the manner in which Sustainability Risks are integrated into the investment decision and the results of the assessment of the likely impacts of Sustainability Risks on the returns of the Sub-Funds. The Sub-Funds include CRUX (Lux) European Special Situations Fund, CRUX (Lux) Pan-European Growth Fund, CRUX Asia ex-Japan Fund and CRUX China Fund.
Unless specified in the relevant investment policy, the Sub-Funds are considered as falling within the scope of Article 6 of the SFDR as they do not promote environmental or social characteristics and does not have as their objective sustainable investments.
The Sub-Funds however remain exposed to Sustainability Risks. Such Sustainability Risks are integrated into the investment decision making and risk monitoring to the extent that they represent a potential or actual material risks and/or opportunities to maximizing the long-term risk-adjusted returns.
We define "Sustainability Risk" as risks principally linked to:
Climate-related events resulting from climate change (also known as physical risks) or to the society’s response to climate change (also known as transition risks),
Examples include: extreme weather, water shortages, biodiversity loss, greenhouse gas (GHG) emissions, climate change, renewable energy, energy efficiency, resource depletion, pollution, waste management, stratospheric ozone depletion and changes in land use.
Issues relating to the rights, well-being and interests of people and communities.
Examples include: inequality, changing demographics, inclusiveness, labour relations, investment in human capital, globalisation, accident prevention, changing customer behaviour, supply chain management (e.g. increase in fatalities, lost time injury rates, labour relations), work practices (e.g. observation of health, safety and human rights provisions) and brand and reputational issues (e.g. poor health & safety records, cyber security breaches)
Issues relating to the governance of companies and other investee entities.
Examples include: corporate governance malpractices, board structure, executive remuneration, shareholder rights, recurrent significant breach of international agreements, bribery issues, transparency or accountability, products quality and safety, selling practices