Brummer Multi-Strategy

Sustainability

Responsible investment

Responsible investment is largely a matter of common sense. It is part of the duties of a portfolio manager to analyse relevant risks and opportunities regardless of whether they are referred to as ESG* factors or, for example, macroeconomic trends and political risks. Making well-informed decisions is essential to our ability to achieve our goal of generating competitive risk-adjusted returns over time.

Brummer Multi-Strategy allocates to investment strategies that are managed within the Brummer & Partners group. In our evaluation of new investment teams, we look for investment strategies that complement the existing ones within the group and that are expected to contribute to the multi-strategy funds' risk-adjusted returns over time. We subsequently work closely with the investment teams within the group to continuosly develop and improve our sustainability efforts.

Sustainability considerations

The potential impact of sustainability risks on the returns of the underlying investment strategies varies. Depending on a range of factors, these risks may, if left unmanaged, have a material or limited adverse impact on returns. Brummer Multi-Strategy AB and the investment teams within the Brummer & Partners group therefore integrate sustainability risks in their respective investment decision-making processes in order to limit the potential impact of such risks. The diversified portfolio of investment strategies, all of which address sustainability risks, further contributes to mitigating the potential effects of sustainability risks on the funds’ returns. Overall, the investment team at Brummer Multi-Strategy assesses the likely impact of sustainability risks on the funds’ returns, as well as on the returns of the underlying investment strategies, to be low.

To avoid so‑called principal adverse impacts of our investment decisions on sustainability factors, we have chosen to avoid all exposure, both long and short, to companies involved in controversial weapons. We also avoid long exposure to companies that violate international norms relating to human rights, labour rights, the environment and anti‑corruption, as well as long exposure to companies involved in thermal coal.

Article 8 fund

The majority of the Brummer Multi-Strategy funds are classified as Article 8 funds under the criteria set out in the EU Sustainable Finance Disclosure Regulation ("SFDR") and promote certain environmental and social characteristics:

Climate action (to consider and mitigate climate change and its impacts);
International norms and conventions on human rights, labour rights, the environment and anti-corruption; and
the UN Sustainable Development Goals (“SDGs”).

Alignment

Brummer Multi-Strategy AB works closely with the investment teams within the group to ensure a shared ambition and a consistent approach to sustainability. The screening tools and indicators used to monitor and assess the outcomes of our sustainability efforts are described in Brummer Multi-Strategy AB’s Responsible Investment Policy (see link below).