We are living through exciting times in which the interests and expectations of investors and other social stakeholders in the areas of environmental and social standards are quickly converging. These are guiding principles that are being continuously reassessed. Continuing review of our investment strategies, in part to meet ESG standards, therefore forms a firm and established part of Lupus alpha's corporate policy.

Our core corporate responsibility involves tailoring our services to the needs and yield expectations of our clients, including many pension facilities and monitoring possible risks- and thus also ESG risks. For Lupus alpha, acting responsibly means even more.  As a company, we are aware of our responsibility towards our employees and our social obligation and act accordingly. This is a current summary of this ongoing process.

Responsible investment forms an integral part of our fiduciary duties to our clients. Our first priority is to achieve long-term sustainable value for our clients. This also involves early risk identification and management to ensure long-term success. Non-financial information forms a necessary part of the investment process that must meet high ethical business standards.

To us, responsible investment means:

We believe that these non-financial factors have an impact on the long-term financial performance of companies. Companies with lower standards in the area of sustainability regularly exhibit higher levels of risk in these areas.

MINIMUM REQUIREMENTS FOR ALL OUR FUNDS

ESG forms are an integral part of our company analyses

We exclude all companies that produce, or trade in, controversial weapons.  And this also means looking at their corporate relationships and ownership.

The basis for this are the following national and international rules:

The exclusions apply to anti-personnel landmines, biological and chemical weapons, cluster munitions, nuclear weapons, depleted uranium weapons and dazzlers

Sustainable Investment Solutions

Our integrated range of services includes tailored solutions that we offer our investors through our own sustainable mutual funds. For more than 15 years we have been managing funds and mandates using a sustainable approach. The different ways of integrating ESG into the investment process can also be combined to match a particular investment policy:

DIALOGUE

At Lupus alpha, we systematically address material ESG issues in our meetings with companies. Constructive dialogue with the companies in which we invest is a key part of our investment process. Our Small & Mid Cap team alone conducts around 1,500 company meetings each year. By doing this, we consistently bring relevant ESG issues to the companies’ attention, thus helping them to address appropriate risks and bring about positive developments.

Governance issues play a particularly important role here, as the quality of corporate governance is crucial to a company’s long-term success. Only management bodies that place the highest demands on themselves to ensure integrity, transparency and action in the best interests of their company will organise their companies in a way that means that they come through our ESG analysis successfully and repeatedly.

ENGAGEMENT

We also exercise voting rights in the funds we manage in our role as an investment management company to promote sustainable business development within our portfolio companies. We generally support all initiatives aimed at maintaining and increasing the long-term value of a company.

At Lupus alpha, we systematically address material ESG issues in our meetings with companies. Constructive dialogue with the companies in which we invest is a key part of our investment process. By doing this, we consistently bring relevant ESG issues to the companies’ attention, thus helping them to address appropriate risks and bring about positive developments.

In selected cases, if we believe that certain measures will damage a company’s long-term value, we will vote against management or seek to bring about changes as active shareholders.

You can find our voting policy HERE

As specialised active asset amanger, we focus on the areas

• Small & Mid Caps
• Value Protection
• Convertible Bonds
• CLO

Depending on the respective investment approaches and client needs, we choose specific paths for dedicated sustainability funds and mandates. The following approaches are available to investors with Lupus alpha's retail funds.