SFDR FBM Alt.1 2023 cooperative U.A. is a so-called feeder fund that invests exclusively in the fund Alt.1 Cooperative U.A. (Alt.1). Altix B.V. (Altix), as manager, is responsible for Alt.1’s investment policy, including the integration of sustainability risks and the inclusion or exclusion of adverse efects on sustainability factors in investment decision(s).

Below is how Altix for Alt.1 handles this.

Sustainability risk
Sustainability risk is an environmental, social or governance (ESG) event or circumstance that, if it occurs, could have a potential or actual material adverse efect on the value of the investment” (Article 2(22) of the SFDR). Sustainability risks may constitute a stand-alone risk or have an indirect negative efect on the overall portfolio risk, including market risks, liquidity risks, credit risks or operational risks.

Sustainability risk assessments are integrated into Altix’s investment decision-making process. In addition, investments are periodically screened for this as described in Altix’s investment policy and process.

When selecting Private Equity funds for Alt.1, ESG challenges – such as climate change, employment issues, anti-corruption – were assessed for each fund by looking at the Private Equity fund’s activity, company, region and sector. The likely efects of sustainability risks on the return of the Alt.1 are expected to be average.

This is based on the diversified nature of Alt.1’s portfolio (a maximum of 25% of assets under management may be invested in one (1) Private Equity fund), the fund selection criteria (the IT, healthcare and business services sectors) and the selective and strict underwriting process followed (new funds with no track record, funds in real estate or infrastructure funds, or in funds investing in the arms or tobacco industries are excluded in advance).

EU Taxonomy
The selection of investments for Alt.1 did not select for meeting the EU criteria for environmentally sustainable economic activities.

Explanation unfavorable efects on sustainability factors Investments can have unfavorable effects on sustainability factors. For example, investments may contribute negatively to climate change, corruption or loss of biodiversity. Altix does not factor such adverse effects into its investment decisions. The reason for this is that Altix invests in a number of Private Equity funds for which there is currently insufficient information available to consider and report on all negative efects of investment decisions in line with the requirements of the sustainability legislation. If in the future the availability of this information improves, Altix will reassess whether the negative efects as prescribed by law can be taken into account in making its investment decisions.

Remuneration policy
Altix, as manager, receives a one-time entry fee and an annual management fee that depends on the investor’s committed capital. Altix receives no performance-related rewards. Because risk management – including managing sustainability risks – is part of investment and selection policies, Altix ensures that risk-taking, is discouraged and prevented.