When selecting investments ESG issues impact our investment selection. Specifically, we work with professional third-party managers and independent appraisers, as well as conduct detailed due diligence at the time of investments involving Big 4 auditors and top internationally recognized brokers. We hold ourselves to high procurement standards regularly reviewing our service providers, conducting internal audits, running tenders to ensure full transparency and the best value and quality for our investors in managing all assets.
The key principles of our investment policy are:
- The Fund will not proceed on a transaction without knowing who the beneficial owner is.
- The Fund will not engage in a relationship with anyone convicted of, or under investigation for, a serious criminal offence.
- The Fund will not engage with anyone or any entity currently on an internationally recognized "Black List”.
- The Fund will not undertake transactions where there is credible evidence of existing links to organized crime and criminal activities. In order to avoid the reputational risk of becoming associated with potentially illegal tax activities, the Fund accurately assesses any risk and takes measures commensurate with that risk.Where the tax activities in question are ongoing and clearly illegal and there is no possibility that these will be discontinued, the Fund will not undertake the transaction.
- When entering into relationships with politically exposed persons or clients with poor past business practices, the Fund will consider limited engagement as a means of building trust.
- In assessing the level of reputational risk, the Fund can take account of certain mitigating factors: ability and willingness to undertake reforms, time elapsing between the past practices or past associations, Track record, competent management and wilingness to adopt best business practices and international standards.
- Integrity and reputational risks are fully disclosed to the Fund’s relevant governing body.
- Transactions are covenanted in a manner that reflects their level of risk.
- All transactions will be monitored for integrity risks throughout the life of the project. In determining how to address reputational risk, the Fund will consider the need for a communication strategy.
In addition, if there are questionable issues, e.g. conflicts of interests issue or an issue when one of the beneficial owners in not known to us, we hurl all our efforts to mitigate the risks and find best solutions in line with our investment strategy and above-mentioned policies.
One of the key UFG values is that we always strive to turn obstacles into opportunities. UFG is known as an investor which brings unique opportunities to its portfolio companies and strategic guidance in complicated issues.