Sustainability

United Nations Principles on Responsible Investments

Adrigo Asset Management has adopted the United Nations (UN) Principles for Responsible Investments also referred to as UNPRI.

By agreeing to the principles Adrigo Asset Management commits to:

1. Incorporate ESG (Environment, Social and Governance) issues into the investment analysis and decision-making processes.

2. Pursue an active ownership policy and incorporate ESG issues into our ownership policies and practices.

3. Seek appropriate disclosure on ESG issues by the entities in which we invest.

4. Promote acceptance and implementation of the Principles within the investment industry.

5. Collaborate with other players in the financial industry in order to enhance our effectiveness in implementing the Principles.

6. Report (annually) on our activities and progress towards implementing the Principles.

För mer information besök www.unpri.org.

Corporate Social Responsibility

Adrigo invests in securities according to a certain investment process and this process involves determining whether an investment is consistent with our ethical principles and in line with our unitholders’ interest. Companies are systematically monitored to ensure their compliance with international conventions and guidelines on human rights, labor rights, environment, corruption and controversial weapons. Rather than automatically divesting companies with reported allegations, Adrigo has decided to use the screening results and conclusions as an input for any decision to initiate an engagement dialogue with the company, either on our own or together with other investors, in order to suggest and encourage that the company responds to and, if needed, improves on the specific issue. An engaged and constructive dialogue will more often lead to convincing the company to initiate positive change rather than simply exiting the investment. We are, however, upon severe and systematic breaches or where active shareholder engagement is deemed to have limited effect — as a final resort — either ready to refrain from investing, or exit our holding.

Adrigo does not consciously invest in:

• Companies that intentionally or systematically violate basic human rights. This may include torture, detention, forced labor and child labor or other exploitation of children.

• Companies that do not live up to maintaining freedom of association and/or who do not allow the right to collective negotiations.

• Companies deliberately damaging locals or undermining a government elected in democratic elections in the company’s home country or the countries in which the company operates.

• Companies that consciously cause health or environmental violations in a significant part of their business.

• Companies that base their business on tobacco production.

• Commercial gambling Companies.

• Companies with activities related to adult entertainment

• Companies deemed to base their business on corruption and bribery.

• Companies producing or selling weapons (eg weapons of mass destruction, land mines and cluster bombs).

Adrigo always strives to deliver the best possible risk-adjusted return for our unit holders by assessing the investment against the above guidelines in order to reduce unjustified risk. There are investments that require extra caution, as the expected return does not always justify the risk. Such companies can generate large profits, but are at the same time associated with operational risks and may thus be subject to stricter regulation in the future. We attach importance to circumstances that can be of great importance to the value of the company, either directly or indirectly, as a result of deterioration of their reputation.

Adrigo sees in its analysis that active CSR (corporate social responsibility) work at the companies is not only a cost but a way to improve and develop the companies for the benefit of shareholders and thus a component that contributes to a better future return for unit-holders in Adrigo’s funds.

Our guidelines are an integral part of the analysis process, both before and after an investment in a company. We believe that each investment opportunity must be valued independently and based on its distinctive nature, and we attach greater importance to the company’s intentions and current actions than its history.

By gathering information from a number of external suppliers, Adrigo gets in-depth knowledge and insight of the various companies’ strategies and efforts in environmental, social and corporate governance. If Adrigo discovers that, despite our efforts and goals, we have invested in a company that violates the ethical guidelines, then that position will be closed.