Our approach to sustainability
In order to ensure a stable and sustainable development globally, it is increasingly important to address sustainability, social and governance related factors, including the factors impacting global warming and climate change, limiting pollution of the environment, enforcing civil rights, fighting against corruption, work environment, health and security matters, and other issues. Considering the importance of the sustainability factors and the development of the legislation and continuing education of the society in this area, more attention is paid to sustainable investments. Avoiding the investments that are signifficantly exposed to the risks related to the sustainability or a reduction of such investments also reduces the total risk of the investments and provides at least neutral or even positive impact to the yield on the investments.
No consideration of adverse impacts of investment decisions on sustainability factors.
The primary aim of the mutual funds and the pension plan managed by Integrum Asset Management IPAS is not the facilitation of the sustainable investments, because the investment portfolio of mutual funds (registered between 2007 and 2015) and the pension plan (registered in 2017) was already initially diversified between different asset classes, economic sectors, countries and issuers with the aim of achieving long-term capital growth, observing only those limitations resulting from international and Latvian regulations on sanctions in relation to sectors, countries and issuers. However, following the principle of sound administration and in order to minimise the adverse impact on the long-term development, prior to making an investment decision, the company takes into consideration the sustainability risk assessment of the issuer and/or the country provided by an international external data source. The company believes that such approach to sustainability risk management is commensurable and is able to ensure positive impact on mitigation of sustainability risks in general.
The Company notes that the remuneration of the Company's employees, including asset managers, is not directly linked to the achieved performance result to avoid motivation to take unreasonable short-term risks. Consequently, asset managers are not motivated to invest in financial instruments that have a disproportionately high sustainability risk, although a higher potential return.
More elaborated information regarding our approach towards reduction of sustainability risks is available in the Sustainability policy.The aim of the policy is to determine the approach to integration of the sustainability (environmental, social and governance) factors within the management of the mutual funds and the pension plan managed by Integrum Asset Management IPAS. The policy has been developed considering the principles as defined in Regulation (EU) 2019/2088 of 27 November 2019 on sustainability-related disclosures in the financial services sector.