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 classified as ESG factors* or, say, macroeconomic trends and political risk. Making well-informed decisions is essential to our ability to achieve our goal of generating a competitive risk-adjusted return over time.

BMS AIF allocates to investment strategies that are managed in the Brummer & Partners group. In our evaluation of new investment teams, we look for investment strategies which complement the existing strategies in the group and which are expected to contribute to BMS AIF's risk-adjusted return over time. We then work with the investment teams in the group to develop and improve our responsible investment activities.

Sustainability considerations

The potential impact of sustainability risks on the returns of the investment strategies that BMS AIF allocates to varies. The risks may, du to various factors, to a large or limited extent negatively impact the returns if left unmanaged. Brummer Multi-Strategy AB and the investment teams in the Brummer & Partners group therefore integrates sustainability risks in their respective investment decision making processes in order to limit this potential impact. Further, BMS AIF´s diversified portofolio of investment strategies. which all consider sustainability risks, adds to the mitigation of any negative impacts on BMS AIF´s returns. Brummer Multi-Strategy AB assesses the likely negative impact of sustainability risks to be low for BMS AIF itself, as well as for the funds in which BMS AIF invests.

To avoid causing so called principle adverse impacts of our investment decisions on sustainability factors, BMS AIF avoids all exposure, both long and short, to companies involved in controversial weapons. BMS AIF also avoids long holdings in companies in violation of international norms on human rights, labour rights, the environment and anti-corruption as well as long exposure to companies involved in thermal coal.

Article 8 fund

BMS Master and its feeder funds BMS AIF, BMS Euro, BMS NOK and BMS Utdelande as well as BMS 2xL are so called Article 8 funds as stipulated by the criteria in EU’s Sustainable Finance Disclosure Regulation (SFDR), and promotes 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, as well as
the UN Sustainable Development Goals (“SDGs”).

Alignment

Brummer Multi-Strategy AB works closely with the investment teams in the Brummer group to ensure alignment of our sustainability efforts. The screening tools and indicators used for monitoring and assessment are described in Brummer Multi-Strategy AB’s policy for responsible investments (see link below).