The EU Sustainable Finance Disclosure Regulation (SFDR) is a set of rules that aims to (i) increase transparency on how financial market participants integrate sustainability into their investment process and (ii) make financial products comparable and better understood by end-investors.
Currently ILX Investment Management (hereafter referred to as the Manager) manages ILX Fund I and ILX Fund II (hereafter referred to the Funds). The Funds are only marketed to Qualified Investors, retail investors cannot participate. Current fund participants and prospective participants to whom the Funds are marketed can access the sustainability-related entity level disclosures of the Manager through the following link, the Principle Adverse Impact Statement through the following link and product level disclosures of the Funds through the links displayed below. All the information contained in the different sections of the product level disclosures, required under the SFDR, is summarized hereinunder in both English and Dutch languages:
Please note that the text below contains a summary. The full document for both ILX Fund I and ILX Fund II may be found here. As the Funds have the same investment strategy, the document is combined for both the Funds and contains all the sections required by art. 37 Commission Delegated Regulation 2022/1288.
ILX Fund I and ILX Fund II (hereafter referred to ‘The Funds’) both qualify as Article 9 SFDR products and have the objective to avoid, minimize or mitigate environmental, social and governance (“ESG”) risks while contributing to the SDGs by focusing on ILX Sustainability Themes (Energy Access and Clean Energy; Sustainable Industry and Infrastructure; Financial Inclusion and Food Security) and reporting quantitative and/or qualitative SDG-related results at a project level. All investments of the Funds contribute to its sustainability objectives.
The Funds have the same investment strategy. The strategy is to build a portfolio of participations in MDB (Multilateral Development Banks) and DFI (Development Finance Institution)-originated and syndicated loan facilities, diversified across geographies and sectors. The Funds aim to invest in loans with an attractive risk-return profile and which have the potential to generate positive SDG-related results. The sustainability objective of the Funds is to be attained by co-investing with MDBs and/or DFIs in projects that contribute to economic, social and environmental objectives in emerging markets and developing economies.
To analyse whether its investments meet the Do No Significant Harm (DNSH) conditions of the SFDR and to identify and address the Principal Adverse Impact (PAI) of investment decisions on sustainability factors, the Funds follows the criteria determined in the Funds their (i) Exclusion Policy; (ii) ESG Policy; and (iii) KYC & AML Policy.
The Manager’s methodology for achieving its sustainable investment objective is based on the robust impact and ESG frameworks of the originating MDBs and DFIs, whom also have the institutional capacity to define and collect ESG and SDG-related information required to identify, report and track sustainability-related information.
Impact and ESG data is primarily collected from the end-borrower, through the MDB or DFI, who requires reporting of project-related ESG and SDG data according to the requirements specified in the relevant loan agreement. PAI data is collected from a combination of sources, which includes the originating MDB or DFI, desk research and proxies calculated by the Manager or third-party data providers. Given that the interaction with the borrowers is usually conducted through the MDB or DFI, the Manager depends on the indicators defined by the MDB or DFI and reported to the Manager. When needed, the Manager utilizes third-party data to estimate portfolio-level results. These models also have their limitations, as they do not derive the performance results from primary data, but are assumption-based.
The Manager’s ESG due diligence includes the assessment of the ESG reports provided by the originating MDB or DFI, which identify relevant ESG Factors that could impact society or the environment. Identified ESG risks are avoided, mitigated, or minimised through the arranging DFI’s direct engagement with the borrower and definition of ESG action plans, which are integrated as non-financial covenants in the loan agreement and result in engagements with the borrower to improve their ESG behaviour.
SDG assessments are anchored on the Fund Participants’ SDG taxonomies and the MDB or DFI’s impact assessment and identification of relevant output/outcome SDG-related results. The impact assessment enables the Manager to identify the relevant Sustainability Theme, and justify the achievement of the sustainable objective associated with the investments.
The Manager monitors the achievement of the sustainability objective of its investments by collecting impact and ESG data from the applicable impact and ESG-related annual reports provided by the MDB or DFI. For monitoring, the Manager reviews the impact reports which include data on the applicable sustainability indicators, as defined for the particular investment (i.e. GHG emissions avoidance/reduction; energy savings; jobs supported; growth of the (W)MSME or Green portfolios of FIs). For monitoring the mitigation of ESG risks, the Manager reviews the annual ESG reports and checks compliance with the agreed mitigation measures.
Onderstaande betreft een samenvatting. Het volledige document voor ILX Fund I en ILX Fund II staat hier en heeft alle secties zoals opgenomen in art. 37 Gedelegeerde Verordening 2022/1288. Het document is samengevoegd voor beide fondsen omdat beide fondsen hetzelfde beleggingsbeleid hebben en dezelfde beleidsdocumenten toepassen.
De Fondsen kwalificeren als artikel 9 SFDR-producten en hebben als doelstelling ESG-risico’s [Environmental, Social, Governance] te vermijden, te minimaliseren of te beperken. Tegelijkertijd dragen de Fondsen bij aan de Sustainable Development Goals (SDGs) door zich te richten op ILX-duurzaamheidsthema’s (toegang tot energie en schone energie; duurzame industrie en infrastructuur; financiële inclusie en voedselzekerheid) en door kwantitatieve en/of kwalitatieve SDG-gerelateerde resultaten op projectniveau te rapporteren. Alle investeringen van de Fondsen dragen bij aan de bijbehorende duurzaamheidsdoelstellingen .
De beleggingsstrategie van beide Fondsen is hetzelfde. Deze bestaat uit het opbouwen van een portefeuille van participaties in door Multilateral Development Bank (MDB) of Development Finance Institution (DFI) verstrekte en gesyndiceerde kredietfaciliteiten, gediversifieerd over geografische gebieden en sectoren. De Fondsen streven ernaar te beleggen in leningen met een aantrekkelijk risico-rendementsprofiel die het potentieel hebben om positieve SDG-gerelateerde resultaten te genereren. De duurzaamheidsdoelstelling van de Fondsen moet worden bereikt door samen met MDB’s of DFI’s te investeren in projecten die bijdragen aan economische, sociale en milieudoelstellingen in opkomende markten en ontwikkelingseconomieën.
Om te analyseren of de beleggingen voldoen aan de Do No Significant Harm (DNSH) voorwaarden van de SFDR en om de PAI van beleggingsbeslissingen op duurzaamheidsfactoren vast te stellen en aan te pakken, volgen de Fondsen de criteria die zijn vastgesteld in het (i) Uitsluitingenbeleid; (ii) ESG Beleid; en (iii) KYC & AML [Know Your Customer & Anti Money Laundering] Beleid.
De methodologie van de Beheerder om zijn duurzame beleggingsdoelstelling te bereiken is gebaseerd op de robuuste impact- en ESG-kaders van de oorspronkelijke DFI’s. Deze instituten beschikken over de institutionele capaciteit om ESG- en SDG-gerelateerde informatie te definiëren en te verzamelen die nodig zijn om duurzaamheidsgerelateerde informatie te rapporteren en te monitoren.
Impact- en ESG-informatie wordt voornamelijk verzameld bij de eindkredietnemer, via de MDB of DFI, die rapportage over projectgerelateerde ESG- en SDG-gegevens eist overeenkomstig de in de desbetreffende leningsovereenkomst vastgelegde vereisten. PAI-gegevens worden verzameld uit een combinatie van bronnen, waaronder de data verkregen via de MDB of DFI, desk research en door de Beheerder of derden berekende proxy’s. Aangezien de interactie met de kredietnemers doorgaans via de MDB of DFI verloopt, is de Beheerder afhankelijk van de door de DFI vastgestelde en aan de Beheerder gerapporteerde indicatoren. Indien nodig gebruikt de Beheerder gegevens van derden om de resultaten op portefeuilleniveau te ramen. Deze modellen hebben ook hun beperkingen, aangezien ze de prestatieresultaten niet afleiden uit primaire gegevens, maar gebaseerd zijn op aannames.
De ESG due diligence van de Beheerder omvat de beoordeling van de door de krediet verstrekkende MDB of DFI opgestelde ESG-rapporten, waarin relevante ESG-factoren worden geïdentificeerd die een impact kunnen hebben op de samenleving of het milieu. Geïdentificeerde ESG-risico’s worden vermeden, beperkt of geminimaliseerd door de directe betrokkenheid van de organiserende MDB of DFI bij de kredietnemer en de definitie van ESG-actieplannen, die als niet-financiële convenanten in de kredietovereenkomst worden opgenomen en resulteren in afspraken met de kredietnemer om zijn prestaties op ESG-gebied te verbeteren.
SDG-beoordelingen zijn gebaseerd op de SDG-taxonomieën van de fondsdeelnemers en de impactbeoordeling van de MDB of DFI en de identificatie van relevante SDG-gerelateerde resultaten. De impactbeoordeling van de MDB of DFI stelt de Beheerder in staat het relevante duurzaamheidsthema te bepalen en de verwezenlijking van de duurzame doelstelling die met de investeringen gepaard gaat, te verantwoorden.
De Beheerder controleert de verwezenlijking van de duurzaamheidsdoelstelling van zijn beleggingen door impact- en ESG-gegevens te verzamelen uit de relevante impact- en ESG-gerelateerde jaarverslagen die worden aangeleverd door de MDB of DFI. Voor de monitoring beoordeelt de Beheerder de impactverslagen die gegevens bevatten over de relevante duurzaamheidsindicatoren, zoals gedefinieerd voor de specifieke investering (d.w.z. vermijding/vermindering van broeikasgasemissies; energiebesparingen; ondersteunde banen; groei van de (W)MSME [(Women) Micro-, Small- and Medium Enterprises] of groene portefeuilles van financiële instellingen. Voor het toezicht op de beperking van ESG-risico’s beoordeelt de Beheerder de jaarlijkse ESG-verslagen en controleert hij de naleving van de overeengekomen beperkende maatregelen.
ILX Management B.V.
Olympisch Stadion 10
1076 CJ Amsterdam,
The Netherlands
AGREEMENT TO TERMS
These Terms and Conditions constitute a legally binding agreement made between you, whether personally or on behalf of an entity (“you”) and [business entity name] (“we,” “us” or “our”), concerning your access to and use of the [website name.com] website as well as any other media form, media channel, mobile website or mobile application related, linked, or otherwise connected thereto (collectively, the “Site”).
You agree that by accessing the Site, you have read, understood, and agree to be bound by all of these Terms and Conditions. If you do not agree with all of these Terms and Conditions, then you are expressly prohibited from using the Site and you must discontinue use immediately.
Supplemental terms and conditions or documents that may be posted on the Site from time to time are hereby expressly incorporated herein by reference. We reserve the right, in our sole discretion, to make changes or modifications to these Terms and Conditions at any time and for any reason.
We will alert you about any changes by updating the “Last updated” date of these Terms and Conditions, and you waive any right to receive specific notice of each such change.
It is your responsibility to periodically review these Terms and Conditions to stay informed of updates. You will be subject to, and will be deemed to have been made aware of and to have accepted, the changes in any revised Terms and Conditions by your continued use of the Site after the date such revised Terms and Conditions are posted.
INTELLECTUAL PROPERTY RIGHTS
Unless otherwise indicated, the Site is our proprietary property and all source code, databases, functionality, software, website designs, audio, video, text, photographs, and graphics on the Site (collectively, the “Content”) and the trademarks, service marks, and logos contained therein (the “Marks”) are owned or controlled by us or licensed to us, and are protected by copyright and trademark laws and various other intellectual property rights and unfair competition laws of the United States, foreign jurisdictions, and international conventions.
The Content and the Marks are provided on the Site “AS IS” for your information and personal use only. Except as expressly provided in these Terms and Conditions, no part of the Site and no Content or Marks may be copied, reproduced, aggregated, republished, uploaded, posted, publicly displayed, encoded, translated, transmitted, distributed, sold, licensed, or otherwise exploited for any commercial purpose whatsoever, without our express prior written permission.