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Ainda, Energia & Infraestructura

PRI reporting framework 2020

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

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.

Ainda pursues investments with financial returns above market by identifying and managing risks and developing opportunities to increase project value in the medium-term. The six pillars of our strategy are:

  1. Execute actions that trigger increased returns
  2. Optimize fee structures to maximize returns
  3. Seek projects with wide margins and operative/commercial efficiencies
  4. Improve and optimize the financial structure.
  5. Create platforms that facilitates investment exits.
  6. Launch adjacent businesses that create synergies with the core project

Ainda´s fiduciary duty is to execute long term sustainable investments (fund´s life span is 15 years. The main ESG factors of our strategy are:

  1. Incorporate internal and third party ESG analysis into the investment process
  2. Solid corporate governance at the GP level that is replicated in the SPV´s
  3. Internal Code of Conduct and Ethics that protects investor interests by including PRI
  4. Internal performance evaluation that includes the identification of ESG risks and opportunities.
  5. Promoting the adoption of UNPRI by participating in forums and workshops
  6. Develop a RI Program with involvement of its whole staff
  7. ESG Benchmarking through GRESB
  8. Incorporating UNPRI and ESG in the SPV´s

It is relevant to mention that Ainda was one of the first signatories of UNPRI in Mexico.

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]

Ainda has a publicly responsible investment policy in its placement document (Prospecto de Colocación), its web page and its corporate presentation published in the web page. As part of the regulation of CKDs in Mexico, Ainda is subject to reporting and transparency policies set by the Mexican Stock Exchange, therefore we have no variations or exceptions to the RI policy and ESG risk identification described above.

As mentioned earlier, the key elements of the RI policy that Ainda has are:

1. Internal and third party ESG analysis into the investment process

ESG risk analysis consists first on the surveillance conducted by external lawyers, seeking full compliance with all applicable permits related to environmental and social impact, typically known as MIA and EVIS, respectively. In a second stage Ainda, (alone or in conjunction with its potential partner(s)) hires an external ESG assessment in order to analyse environmental and social risks and develop a mitigation plan.

2. Solid corporate governance at the GP level that is replicated in the SPV´s

Under the terms of our investment contracts, Ainda undertakes all necessary efforts, research, and analyses of all available information to ensure that sound investments. Ainda evaluates the feasibility of each project in accordance with international best practices in the private equity sector. Once Ainda has concluded all its analyses, it presents the results of its assessments to the corporate governance bodies, which decide whether to approve the investment or not. Its corporate governance bodies include an internal Audit Committee, an Investments Committee and a Technical Committee, with independent members and LP's (some of which are are UNPRI signatories as well). Therefore, besides internal analyses performed as part of Ainda’s investment process, ESG risks and opportunities in its projects are subject to independent assessments and monitoring.

On top of the corporate governance that a listed fund as Ainda has to have, we have Proeza as a partner, an international conglomerate that contributes with an extensive local and global experience in the management of social and environmental risks (Proeza operates manufacturing plants in XX countries), as well as through their participation in the Audit and Compensation Committees

3. An internal Ethics and Conduct Code that protects investor interests by including PRI

All employees must sign the Ethics and Conduct Code and thus accepting to implementation and enforcement PRI. Employees must renew their adherence to said Code each anniversary.

4. Internal performance evaluation that includes ESG risks and opportunities identification.

Ainda's compensation policy establishes that each fund employee must be evaluated in terms of her/his performance in each of the investment processes in which he/she participates during the evaluation period. Ainda’s investment process includes ESG risk and opportunity identification.Annual bonuses are defined in terms of the annual performance evaluation.

5. Promoting the adoption of UNPRI by participating in forums and workshops

Ainda’s  C-level employees have participated in almost every forum that PRI has organized in Mexico. Additionally, staff level have joined and contributed in different workshops with current and potential signatories as well. Besides, Ainda’s C-level employees often join the most prestigious panels in the industry, through which they continually reinforce ESG messages, following up through social media posts.   

6. Developed a RI Program that involves all Ainda’s staff

Ainda developed a Responsible Investment Program that involves all its staff, having in mind compliance of all responsible investment principles, with reviews and updates every quarter.

7. ESG Benchmarking through GRESB

As a result of a recommendation made by UNPRI, beginning 2020, Ainda is joining GRESB which will help us identify ESG risks and opportunities.

8. Incorporating UNPRI and ESG in the SPV’s

Ainda is a hands-on investor which actively participates in the administration and governance bodies of the portfolio companies (SPVs). We are ensuring that the companies implement PRI by including specific commitments in all relevant documents of the transactions (SPA, SHA, among others). Moreover, Ainda and/or its partners ensure that the SPV or equivalent figure is properly staffed with the necessary resources who will be responsible for monitoring compliance with ESG principles and with the recommendations provided in the third-party assessments. We also ensure that third parties involved in the project, such as EPC and O&M contractors, include ESG policies in their key processes and incorporate proper talent in their staff to manage and mitigate ESG risks.

01.6. Additional information [Optional].

          
        

SG 01 CC. Climate risk (Private)


SG 02. Publicly available RI policy or guidance documents

 

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

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

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

02.3. Additional information [Optional].

Our three main public comunication channels are:

  • Investment Prospectus https://www.bmv.com.mx/docs-pub/prospect/AINDACK-prosp21-13032018-124716-1.pdf
  • Website http://ainda.mx/en/?lang=en
  • Corporate Presentation http://ainda.mx/investor-relations/?lang=en/#documents

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.

The relationship between the GP and its clients, investors, partners or promoted companies may imply potential conflicts of interest. To avoid these, according to the contract with our investors, the GP must disclose all potentially affected parties in any potential conflict of interest, , and it must allow the governing bodies to resolve the conflict of interest according to their attributions and independence.​

None of the beneficiaries may use its position or influence within the GP to carry out business activities with (i) family members, or (ii) any organization or company in which a member of the beneficiaries' family is part of and (iii) any person who has a conflict with the interests of the GP.

Additionally, one of our shareholders is a large private industrial conglomerate (Proeza) based in Monterrey, Mexico, which provides guidance and support to the normal operation of our governance system and which also helps monitor and solve potential conflicts of interest. Through this relationship, Ainda has been given access to a third-party provider of a confidential "hotline", which allows employee or other stakeholders to transparently disclose potential conflicts of interest.

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


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