Adverse sustainability impacts relate to the risk that the investments made via the funds managed by SQT Investment Management S.A., in its capacity as an alternative investment fund manager, may have on sustainability factors.

SQT Investment Management S.A. believes that considerations concerning sustainability factors play a crucial role in being a responsible alternative investment funds manager and are a key driver in creating long-term value for all stakeholders and for society by making its business and the managed assets ‘future-proof.

Nevertheless, pursuant to article 4.1(b) of the SFDR, SQT Investment Management S.A. does not consider the adverse impacts of investment decisions on the basis that, in the context of the current investment strategies of the funds under management, it does not integrate in its processes any due diligence on the principal adverse impacts of the investment decisions.

No consideration of sustainability risks

Sustainability risks mean environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of the investment.

In this context, the SQT Investment Management S.A., decides that taking into consideration the sustainability risks on the returns of the investments is temporarily not relevant for its investment strategy.

Funds managed by the SQT Investment Management S.A. invest in equity index derivatives, currencies, commodities, bonds and bond derivatives. In such instance, in such instances, the returns from the investments are mainly limited to the principal amount and accrued interest. Therefore, as the value of investment returns is limited to the amounts to be collected from the trading profits, any effect of sustainability risks is not considered relevant.