As part of a global reflection on the impact of its investments, Chahine Capital has decided to adopt a responsible approach in the choice of its investments. It is essential to us at Chahine Capital to align the interests of investors with the general interests of civil society.
Norm-based and sectors exclusions
First, we have decided at a corporate-level to exclude certain sectors and practices from our entire range of funds.
Thus, we have banned investment in companies active in the production of weapons, including of course cluster bombs, anti-personnel mines and companies involved in nuclear weapons maintenance.
Chahine Capital has also decided not to invest in companies whose income from coal mining activities (thermal coal, metallurgical coal, coke) exceeds 30% of total revenue. In addition, companies engaged in the production of tobacco are also excluded.
Finally, we do not invest in companies which are found to be in breach of fundamental ethical standards (violation of individual rights, non-respect of human rights, severe environmental damage, etc.).
Controversies monitoring and risk control
We have supplemented our existing daily-risk policy with a component related to ESG. Indeed, business conduct risks related to human rights, labour, the environment and corruption can result in risks to a company’s reputation and finances, and therefore in a risk for the final investor.
Thus, we exclude companies with a high level of controversy (levels defined in the ESG Risk Control procedure). We use the external RepRisk database for this purpose.
In addition, companies whose operations violate UNGC (United Nations Global Compact) principles are excluded.
SRI voting policy
We have set up an SRI voting policy and therefore vote at all shareholders’ meetings of the companies held in the Digital Funds. We apply by default the SRI voting recommendations provided by the research of our partner ISS.
Principal Adverse Impacts
We do not consider the adverse impacts of our investment decisions on ESG factors yet. The main reason is the lack of information and data available to adequately assess such principal adverse impacts considering that the regulatory technical standards of SFDR which will include the detailed principal adverse impacts disclosure requirements have not yet been adopted. Once these technical standards are adopted, we will take into account the adverse impacts of our investment decisions on ESG factors.
Since October 2019, Chahine Capital has joined the network of investor managers who have signed the United Nations Principles for Responsible Investment (UNPRI).
We voluntarily undertake to apply the 6 principles defined in favor of responsible investment. These principles are intended to help signatories to incorporate environmental, social and governance issues into their investment and shareholding decisions.
The Luxembourg Finance Labelling Agency (LuxFLAG) has also awarded the ESG label to 4 of the funds managed by Chahine Capital : Digital Funds Stars Europe, Digital Funds Stars Europe Ex-UK, Digital Funds Stars Europe Smaller Companies, Digital Funds Stars US Equities.
This label reflects our desire to be part of the powerful and virtous current of responsible finance.