Our Sustainability Approach
Integration of ESG Criteria and Sustainability Risks
Sun Hill Investment Management considers environmental, social and governance (“ESG”) criteria as part of its overall investment analysis and risk assessment process because it believes this analysis is critical in order to have a complete understanding of the risk of each investment.
We define a sustainability risk as an ESG event or condition that, if it occurs, could cause a material impact on either the investment risk or return of our funds or portfolios.
ESG risks may impact the strategy of our funds and can have negative impacts on the overall performance of our funds, hence it is imperative for us to understand how these issues affect business strategy and performance. Impacts from these issues can be financial, material, and can spread across multiple funds and managed portfolios.
We adopted good governance practices, our Board composed of a mix between independent and non-independent directors, to limit bias which may otherwise lead to board approvals risks. Additionally, we have a social objective and adopted an inclusivity HR approach and appointed personnel with different nationalities and genders.
The offering documents of our funds include disclosures on the policies in place to integrate sustainability risk.
We do not follow a mechanistic, formulaic approach to determine which sustainability risks might be most material, but instead assesses those risks on an item-by-item and investment-by-investment basis taking into account available information and data. As such, Sun Hill Investment Management considers sustainability risks to varying extent depending on factors such as the availability and type of ESG data, the investment horizon and the characteristics of the investment.
Whilst Sun Hill Investment Management engages in the assessment of ESG criteria as described above, it does not have formal quantifiable targets or hurdles for all of its funds and portfolios under management.
Our Products Meeting Sustainability Criteria
The products listed below have adopted sustainability measures and policies
Budapest Apartments Real Estate Fund
Regulated Alternative Investment Fund
This Fund invests in residential and commercial apartments in the Budapest Metropolitan Region. The Fund aims to invest substantial part of its portfolio in near zero emission real estate. Further, the Fund aims to upgrade the energy efficiency of its holdings where they are rated in a below average category by the relevant scales.
The current investment portfolio of the Fund comprises the following categories of real estate investments:
100% near zero emission rating
0% other above average energy efficiency rating
0% below average energy efficiency rating
new product coming soon ...
Other Investment Products
Investment products that currently do not meet sustainability criteria
West Bridge Fund
Notified Alternative Investment Fund
This Fund primarily invests in income producing private debt securities.
The Fund will allocate its exposure taking into account credit risk, subordination and maturity. 80% of the portfolio shall have time to maturity not exceeding 3 years.
The Investment Manager will monitor the issuer profile of the portfolio assets in respect of their sustainability policies, however, no formal commitment has been made in that regard as of now.
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