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UFG Asset Management

PRI reporting framework 2020

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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

          Integrity due diligence ﹠ monitoring guidelines
        
          Risk management and reputational policies
        

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

Other description (1) UFG funds are proud of providing investor reporting transparency and Fund positioning full transparency in its reports to investors
Other description (2) Advisory Committee oversight and Conflicts of Interests resolution. Advisory Committee comprising of UFG's senior management and core LPs oversee operational and financial performance and the updating of operational policies and systems, detail the Company's strategy in view of the foreseeable future. Investment Committee observers from core LPs.

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.

- UFG Asset Management views the principals of conducting its investment activities in accordance with Environmental, Social and Corporate Governance (ESG) as one of its core principles and values and has always pioneered and promoted these values across the capital range of its investment products. 

- Our mission is to act in the best long-term interests of our investors and the market. UFG uses innovative approaches and instruments and expects an appropriate return on investments. UFG's investment strategy is designed to provide LPs with superior, long-term capital growth while avoiding undue risk. 

- Transparency: UFG funds are proud of providing investor reporting transparency and Fund positioning full transparency.

- Integrity: UFG has always placed utmost importance on reputation and integrity of conducting its business, and thoroughly investigates all its counterparty relationships and potential investee companies, as well as future buyers of UFG portfolio assets from the standpoint of rigorous credibity and integrity checklist and will not do business without full integrity clearance.

- We bring in not only capital. We provide the top-level expertise and strategic guidance on operational improvements, including revenue growth, procurement, leadership development, IT optimization, lean process and energy sustainability. 

 

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]

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.

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

Other, specify (1) description

          Integrity due diligence ﹠ monitoring guidelines
        

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

02.3. Additional information [Optional].

We offer full disclosure of all UFG guidelines, policies, reports and position transparency to our investors and potential investors. 


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.

Where there are any conflicts of interests and any matter in which the directors are involved the company keeps close track that there is no reputational damage to the company and the partnership.

UFG invests across the capital range: private equity, real estate funds and hedge funds.  Each of the teams are segregated and separately managed by professionals in respective asset classes, and there are Chinese walls between private and public investment teams.  All funds have reputable international board of directors, advisory committees. Each of the three businesses has separate Investment Committee.  Any potential conflicts of interests are escalated from the investment committees and decided on the (Advisory) Board level which consists of independent directors (in case of hedge funds) and of anchor investors representing majority in interest in UFG funds (for private and real estate funds).  

 

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


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