Sustainability

1. Definition and Scope of Sustainability Risk
Sustainability risk is defined as any environmental, social, or governance (ESG) event or condition that, if materialized, could have a significant negative impact on the value of an investment. The magnitude and likelihood of such risk depend on multiple factors, including the nature of the issuer, its economic activity, geographic location, asset class, and type of investment instrument.
In this context, Ginvest Asset Management SGIIC (Ginvest AM), as a financial product manager, assumes the responsibility of integrating considerations beyond purely financial criteria, incorporating, to the extent possible, elements that contribute to a more sustainable economy. Just as financial risks are exhaustively analyzed in any investment decision, sustainability risks must also be evaluated with the same rigor and methodology.

2. Consideration of Sustainability Risk in Managed Funds
Currently, the funds managed by Ginvest AM do not promote environmental, social or governance (ESG) characteristics or have a sustainable investment objective, in accordance with Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR). However, although these factors are taken into account in the investment process, they are not decisive in portfolio composition. In line with the position of the European Securities and Markets Authority (ESMA), Ginvest AM is aware of the challenges associated with the heterogeneity of ESG rating methodologies, which hinders comparability for investors. The recent taxonomy regulations aim to mitigate this issue and allow for a more uniform assessment of the sustainability characteristics of financial assets.

3. Aplicación de Criterios ESG en el Proceso de Inversión de carteras de gestión discrecional y servicio de asesoramiento
Si bien Ginvest AM no integra formalmente los riesgos de sostenibilidad en sus estrategias de inversión, la entidad tiene como objetivo interno destinar un mínimo del 50% de su exposición a activos clasificados como Artículo 8 o 9 del Reglamento SFDR. Teniendo en cuenta que los servicios de inversión se implementan a través de productos de terceros, la evaluación de los riesgos de sostenibilidad de estos activos recae sobre las gestoras de los fondos subyacentes, quienes tienen la obligación de divulgar información periódica sobre calificaciones ESG, así como otros indicadores cualitativos y cuantitativos relevantes para la toma de decisiones de inversión. Dentro del proceso de análisis y construcción de carteras, Ginvest AM considerará esta información como un elemento adicional dentro de sus modelos de análisis, dado que los riesgos de sostenibilidad pueden afectar potencialmente la rentabilidad a largo plazo para los inversores.

The institution's investment philosophy is based on a comprehensive assessment of all risks that may impact investment profitability, incorporating tools to identify, manage, and mitigate non-financial risks. To this end, it emphasizes the importance of ongoing communication with the managers of the underlying funds and active investment monitoring.

4. Incorporation of Sustainability Risk Assessment Tools
As part of its commitment to improving risk control processes, Ginvest AM has incorporated an analytical solution from an external provider with experience in ESG risk assessment. This new system will allow:

• Integrating sustainability metrics into investment analysis.
• More effectively monitor ESG exposure in managed portfolios.
• Obtain standardized and comparable data in line with European regulations.
• Optimize investment control and monitoring procedures from an ESG perspective.

With this new technological addition, Ginvest AM adds more robust sustainability risk control tools, ensuring a continuous and accurate assessment of the ESG impact of its investment strategies.

5. Commitment to Due Diligence and Regulatory Compliance.
As a collective investment fund manager, Ginvest AM is subject to strict due diligence and oversight principles in the selection and monitoring of investments. In accordance with applicable regulations, the entity must:

• Ensure in-depth knowledge of the assets in which your funds invest.
• Implement effective due diligence policies and procedures to manage and mitigate risks.
• Ensure that all investment decisions are made in line with the objectives and strategies of the managed funds.

In this regard, Ginvest AM will continue to evolve its ESG analysis framework, maintaining a balanced approach between financial profitability and the integration of sustainability criteria, with the goal of offering a solid, responsible investment model aligned with the best practices in the financial sector.

1. Regulatory Framework and Approach of Ginvest AM
Pursuant to Article 4 of Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial sector (SFDR), Ginvest Asset Management SGIIC (Ginvest AM) is required to declare whether it considers the major adverse impacts (PAIs) of its investment decisions on environmental, social and governance (ESG) aspects.

2. Ginvest AM's Position on Adverse Impacts on Sustainability

Currently, Ginvest AM does not consider the adverse impacts of its investment decisions on sustainability factors. This decision reflects the nature, size, and scale of the entity's activities, as well as the high implementation costs that would be involved in fully integrating these factors into its investment process.
However, the consideration of such adverse incidents may be developed if the circumstances of the Management Company change.