Sustainability-related Disclosures

Consideration of sustainability risks and principal adverse impacts

We consider sustainability risks and principal adverse impacts in our investment activities. Sustainability risks refer to events or circumstances related to the environment, society, or governance that, if realized, could cause an actual or potential negative impact on the value of the investment. Principal adverse impacts refer to any direct or indirect adverse effects on the environment, society, or governance factors caused by the operations of the investment objects.

We consider sustainability risks and their potential impacts on the investment return in our investment decisions in accordance with our Principles for Responsible Investment. Information regarding sustainability risks and impacts is embedded in investment decisions in each asset category in the manner best suited for the asset category in question.

In certain industries, our general Principles for Responsible Investment are supplemented by asset category-specific sustainability principles. These principles contain a more detailed description of how we identify and analyze sustainability factors and indicators, as well as our specific operating procedures and principles.

United Bankers Principles for Responsible Investment (the United Bankers Group) »

Information concerning the classification of the UB360 and Unique asset management portfolios in accordance with the SFDR Regulation »

Information on the classification of the PIO asset management portfolios in accordance with the SFDR Regulation »

Principles for identification and consideration of the Principal Adverse Impacts of investments »

Statement on principal adverse impacts of investment decisions on sustainability factors »

United Bankers also has in place a separate Ownership Policy, depicting the ownership steering methods in place.

Ownership Policy for funds managed by UB Asset Management Ltd and UB Fund Management Company Ltd »

When making investment decisions, we consider sustainability risks through analyzing and monitoring the operating methods of the underlying companies from environmental, societal, and governance aspects. Portfolio managers utilize global ESG databases and due diligence reviews in order to determine material sustainability risks and principal adverse impacts of investments. Additionally, we use an exclusion list of the industries that we consider unsuitable investment objects in terms of sustainability. In the assessment of principal adverse impacts, we employ a risk-based approach and in analyzing information, we seek to identify the risks posed by any principal adverse impacts on the environment, the society, and governance factors.

In terms of our existing investments, we monitor sustainability risks and principal adverse impacts. In case significant deviations are detected, the alternatives are, depending on the gravity, nature, and extent of the deviation, either direct dialogue with the corporate management, joint engagement with other investors, or abandoning the investment. Additionally, we require our investments to comply with the principles of the international corporate responsibility initiative, the UN Global Compact. In case we discover that a company we have invested in is breaching the principles of the UN Global Compact, we analyze the situation with the portfolio manager, and thereafter, the Responsible Investment Steering Group decides on further actions to be taken.

We offer investment advice concerning our own products and services, as well as those of our collaboration partners. The consideration of the sustainability risks and principal adverse impacts of our own products has been described above, and further information is available in the United Bankers Principles for Responsible Investment. As concerns the financial products of our collaboration partners, each operator is for their own part responsible for considering sustainability risks and principal adverse impacts in accordance with their own operating principles.

As of August 2022, companies offering investment advice, asset management, and unit-linked insurances are required to identify the sustainability preferences of their clients in conjunction with rendering investment services and offering investment insurance. We verify the sustainability preferences and responsible investment goals of each client in conjunction with the suitability assessment and recommend our clients products aligned with their sustainability preferences and goals.