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Abac Solutions Manager S.à r.l.

PRI reporting framework 2019

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

          ESG red flag exclusion
        

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

The Abac funds have the mission to invest profitably in solid Spanish medium-sized companies that require long-term flexible capital solutions.

As investors, we are aligned with the long-term interests of our portfolio companies. We have the philosophy that the Abac funds should leave a positive footprint in our portfolio companies and leave them stronger or in a better position than when we acquired them.

At Abac Capital we acknowledge that our investment decisions impact the life of the fund's portfolio companies, their employees and communities. We have a fiduciary duty to the fund's investors and we are committed to the utmost ethical behavior. This is a key success factor for our reputation as partners of choice. Thus, since inception, Environmental, Social and Governance (ESG) factors and a strong culture of Citizenship is at the heart of what we do. ESG is monitored during the investment process by deal team and reported at the Approval and Investment Committees and, after an investment, at the respective Portfolio Review Committees. An ESG red flag is sufficient reason not to pursue an opportunity.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

We consider environmental, public health, safety, and potential social issues before deciding to invest in a particular company.

We strive to grow and improve the companies in which the fund invests for long-term sustainability.

We seek to engage with all relevant stakeholders either directly or through representatives of the fund's portfolio companies.

We implement appropriate reporting, auditing, compensation and governance structures in the fund's portfolio companies with the goal of improving performance, aligning interests and minimising risks.

The fund's portfolio companies and ourselves are committed to comply with applicable labor laws in the countries in which we operate.

We keep strict policies that prohibit bribery and other improper payments to public officials consistent with the OECD Anti-Bribery Convention.

We provide appropriate information to the fund's limited partners on ESG matters, and we will continue to foster transparency about our activities.

01.6. Additional information [Optional].

          
        
I confirm I have read and understood the Accountability tab for SG 01 I confirm I have read and understood the Accountability tab for SG 01

SG 01 CC. Climate risk (Not Applicable)


SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

02.3. Additional information [Optional].


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Three layer approach to Conflicts of Interest (“COI”) resolution.

1) Abac Capital has a Compliance Committee, comprising a Chief Compliance Officer and a Compliance Director, that are made aware and solve potential COIs

  • All Abac Capital employees undertake training to identify and appropriately manage different kinds of COIs (regulated in Abac Capital's Code of Conduct and Compliance Training Manual). Potential COIs are notified to the Compliance Committee

2) One Abac Solutions director holds the Chief Compliance Officer title and Abac Capital’s Legal Director holds the Compliance Director title. Either the Chief Compliance Officer or the Compliance Director will be aware and solve COIs. When appropriate, the Compliance Committee escalates the matter to Abac’s Board.

  • Final decisions on investments are taken by the Board of Abac Solutions, which is independent from Abac Capital. This guarantees non-biased decision making and  eliminates any COI at the time of investing

3) A Supervisory Board (integrated by seven core LPs) veils for investors interests and negotiates with Abac Capital management team to solve potential COIs. Potential conflicts may include (none of them are currently applicable):

  • Discussions around potential key man substitution
  • Conflicts between two different funds advised by Abac Capital
  • Contracts with related parties

 

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


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