Sustainability-related disclosures for our discretionary portfolio management mandates and UCITS fund management

Integration of sustainability risks

At Julius Baer Gestión, SGIIC, S.A., we consider sustainability risks (risks arising from environmental, social or governance events or conditions that could have a material negative impact on the value of an investment) as critical aspects in our overall risk management framework. In our capacity as investment manager, we have therefore integrated sustainability risk considerations into our investment management process. For this purpose, ESG risk factors and assessments on an instrument-level were made available to our investment and portfolio managers. The application of this additional information and data was underpinned by the introduction of new internal policies and guidelines. In particular, this enhanced process is intertwined with the implementation of the Julius Baer ESG Investment Rating Methodology, which allows us to recognise financial instruments that we deem to have a material negative impact on the environment or society, or to bear severe governance-related risks. We therefore excluded such investments (so-called ESG Risk Investments) from our offering. This means that we will not invest on your behalf in such instruments, in the context of a discretionary mandate or collective investment schemes (subject to exceptions, e.g. for index tracking purposes). The asset classes currently covered by our ESG Investment Rating Methodology include equities, corporate and sovereign bonds, and funds. Please note that additional asset classes will be covered in the future as ESG data coverage evolves.

No consideration of adverse impacts of investment decisions on sustainability factors

In accordance with Article 4 (1) of Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector, Julius Baer Gestión, SGIIC, S.A. does not generally consider the adverse impacts of its investment decisions on sustainability factors as displayed in Annex 1 Table 1 of Commission Delegated Regulation (EU) 2022/1288. The reason for not doing so is that Julius Baer Gestión, SGIIC, S.A. has decided to first start with a selected offering of discretionary portfolio management mandates and collective investment schemes, which consider adverse environmental and/or social impacts according to its proprietary Julius Baer ESG Investment Framework. Julius Baer Gestión, SGIIC, S.A. takes the view that a general consideration of adverse impacts and quantitative disclosure over all its discretionary portfolio management mandates and collective investment schemes would require a disproportionately high administrative effort, which at this point in time is not justified, due to the still evolving regulatory baseline and data foundation. However, Julius Baer Gestión, SGIIC, S.A. is closely monitoring these developments and re-evaluates this position on a continuous basis.

Information about our remuneration policy

At Julius Baer Gestión, SGIIC, S.A., we recognize the importance of environmental, social and governance (“ESG”) sustainability elements throughout our business activities, including our remuneration systems. In accordance with the Julius Baer Group standards, ESG is reflected, directly or indirectly, in various aspects of our remuneration systems at regional, divisional and individual levels through proper governance, performance measurement standards (around values, client satisfaction and employee development) and risk management considerations. At Julius Baer, the compensation schemes are designed to ensure compliance with global rules and regulations and the ESG considerations embedded within them, while specifically incorporating location-specific guidelines, in support of a sound risk culture. Group-wide compensation decisions include assessments of financial-, market-, legal-, risk-, and compliance-related metrics to ensure compensation properly reflects both, internal and external factors. We also employ a compensation deferral mechanism, with risk-adjusted performance metrics, to deter excessive risk-taking. Socially, Julius Baer Gestión, SGIIC, S.A.  operates various initiatives related to talent management, workforce diversity, and employee satisfaction, which we strengthen each year to help us attain our Employer of Choice goals and support our sustainability aspirations. At the individual level, all employees are held to high conduct standards via our Code of Ethics and Business Conduct (redefined in 2020) and are specifically measured on their ability to reflect our core Values (Care, Passion, and Excellence) and Risk Behaviours in their business activities. For more information about how our remuneration policy is consistent with the integration of sustainability risks, please be referred to the Remuneration Report section of our Group’s latest Annual Report (available here).

Version  Date Changes
3 21.02.2024 Update of remuneration statement: new reference to Group remuneration report
2 20.12.2023 Update of current position with regard to data availability and consideration of adverse impacts on sustainability factors
1 10.03.2021 Initial Publication