This page provides sustainability-related information about the Sigra Investment Fund Limited (the “Fund“), an exempted company incorporated with limited liability under the laws of the Cayman Islands, pursuant to Article 10 of the Sustainable Finance Disclosure Regulation (the “SFDR“).
The SFDR is a European regulation introduced to improve transparency in the market for sustainable investment products, to prevent greenwashing and to increase transparency around sustainability claims made by financial market participants.
| Name: Sigra Investment Fund Limited | Legal entity identifier: N/A |
| Does this financial product have a sustainable investment objective? | |
| ☐ Yes | ☒ No |
| ☐ It will make a minimum of sustainable investments with an environmental objective: ____% ☐ in economic activities that qualify as environmentally sustainable under the EU Taxonomy ☐ in economic activities that do not qualify as environmentally sustainable under the EU Taxonomy ☐ It will make a minimum of sustainable investments with a social objective: % | ☐ It promotes Environmental/Social (E/S) characteristics and while it does not have as its objective a sustainable investment, it will have a minimum proportion of 0 % of sustainable investments ☐ with an environmental objective in economic activities that qualify as environmentally sustainable under the EU Taxonomy ☐ with an environmental objective in economic activities that do not qualify as environmentally sustainable under the EU Taxonomy ☐ with a social objective ☒ It promotes E/S characteristics, but will not make any sustainable investments. |
A. Summary
The Fund promotes environmental and social characteristics in accordance with Article 8 of the SFDR.
In its implementation of the Fund’s Environmental, Social and Governance (ESG) strategy, the Investment Manager favours issuers with good ESG profiles, as captured by its ESG methodology.
The Fund’s environmental or social characteristics are assessed both quantitatively and qualitatively, by means of sustainability indicators as well as of the Investment Manager’s research process to determine a company’s profile on ESG issues. This includes the use of third-party research material. As part of its investment decision making process, the Fund’s ESG strategy also uses other criteria for the selection of underlying assets, namely the exclusion of certain controversial activities and sectors, as far as practicable and in line with the Investment Objectives of the Fund.
The Fund currently has only one investment, this being in a Canadian real estate project. The Fund invests in this project via the granting of several loans to Lone Tree Properties Ltd, the project developer, through a Canadian SPV.
B. No sustainable investment objective
The Fund promotes environmental or social characteristics but does not have as its objective a sustainable investment.
What are the objectives of the sustainable investments that the financial product partially intends to make and how does the sustainable investment contribute to such objectives?
The Fund promotes environmental or social characteristics but does not have as its objective a sustainable investment.
How do the sustainable investments that the financial product partially intends to make, not cause significant harm to any environmental or social sustainable investment objective?
The Fund promotes environmental or social characteristics but does not have as its objective a sustainable investment.
How have the indicators for adverse impacts on sustainability factors been taken into account?
The Fund promotes environmental or social characteristics but does not take into account indicators for adverse impacts on sustainability factors.
Are the sustainable investments aligned with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights?
The Fund promotes environmental or social characteristics but does not have as its objective a sustainable investment.
C. Environmental or social characteristics of the financial product
What are the environmental or social characteristics promoted by this financial product?
The Fund promotes positive impact by investing in projects which promote climate change mitigation, climate change adaptation, and/or social impact.
The promotion of a positive impact in these areas results in the Fund promoting various environmental and/or social characteristics.
D. Investment strategy
What investment strategy does this financial product follow and how is the strategy implemented in the investment process on a continuous basis?
The investment objective of the Fund is to provide investors with an opportunity to achieve capital appreciation primarily through investing in real estate ventures in Canada by way of equity participation and/or financing arrangements for such ventures. Currently the Fund holds a 100% interest in a BVI company, which through a Canadian SPV is invested in a Canadian real estate project developed by Lone Tree Properties Ltd. The Fund’s only investments are 5 loans advanced to the Canadian SPV via the BVI company.
Lone Tree Properties Ltd. is developing The Foothills in Lantzville, British Columbia on the West Coast of Canada. This development is an 1800 acre (728 ha). development with multiple residential housing formats.
What are the binding elements of the investment strategy used to select the investments to attain each of the environmental or social characteristics promoted by this financial product?
The binding elements of the investment strategy used to select the investments to attain each of the environmental or social characteristics promoted by the Fund as listed in the Investment Manager’s ESG Policy.
The Fund is currently invested in a residential real estate project which protects the natural environment, promotes the sustainable use and protection of water resources, limits pollution production and protects the biodiversity and ecosystems of the project land.
What is the policy to assess good governance practices of the investee companies?
The Investment Manager’s ESG Policy.
Is there a commitment to reduce by a minimum rate the scope of investments considered prior to the application of the strategy? (Including an indication of the rate)
No.
Does this financial product consider principal adverse impacts on sustainability factors?
☐ Yes
☒ No
E. Proportion of investments
What is the planned asset allocation for this financial product?
The Fund is closed-ended and is currently fully invested in one project, this being the residential real estate development located in the Foothills, Lantzville, B.C., Canada.
How does the use of derivatives attain the environmental or social characteristics promoted by the financial product?
The Fund does not make use of derivatives.
What is the minimum share of investments with an environmental objective aligned with the EU Taxonomy? (including what the minimum share of transitional and enabling activities is)
The Fund does not have as its objective to invest in investments aligned with the EU Taxonomy.
What is the minimum share of sustainable investments with an environmental objective that are not aligned with the EU Taxonomy?
The Fund does not have as its objective to invest in investments classified as Sustainable Investments under SFDR.
What is the minimum share of sustainable investments with a social objective?
The Fund does not have as its objective to invest in investments classified as Sustainable Investments under SFDR.
What investments are included under “#2 Other”, what is their purpose and are there any minimum environmental or social safeguards?
“Other” includes the remaining investments of the Fund which are neither aligned with the environmental or social characteristics, nor are qualified as sustainable investments.
Investments which may fall in the “Other” category include, but are not limited to, cash, cash equivalents and treasuries.
Such “Other” investments are held for a number of reasons that the Investment Manager believes will be beneficial to the Fund, such as, but not limited to, risk management, and/or to ensure adequate liquidity and cash management.
The Fund’s holdings of “Other” investments do not have minimum environmental or social safeguards.
F. Monitoring of environmental or social characteristics
What sustainability indicators are used to measure the attainment of the environmental or social characteristics promoted by this financial product?
The Investment Manager makes use of ad-hoc research material to assess this.
How are the environmental or social characteristics and the sustainability indicators monitored throughout the lifecycle of the financial product and the related internal/external control mechanism?
The Investment Manager conducts reviews to ensure ongoing compliance with the policies and analyses the investments exposure at a portfolio level for possible adverse impact. The Investment Manager is responsible for the correct execution of the ESG due diligence activities.
G. Methodologies
What is the methodology to measure the attainment of the environmental or social characteristics promoted by the financial product using the sustainability indicators?
The Fund measures the attainment of the environmental or social characteristics by using on an ongoing basis the sustainability indicators mentioned under the section “F. Monitoring of environmental or social characteristics”.
H. Data sources and processing
What are the data sources used to attain each of the environmental or social characteristics including the measures taken to ensure data quality, how data is processed and the proportion of data that is estimated?
- Data sources
The primary source of ESG research is derived from ad-hoc research, which may be carried out through the use of third-party service providers.
- Data processing
Data is processed internally by the Investment Manager’s research analyst/s and portfolio manager/s, supplemented by external data providers.
- Estimated data
The Investment Manager’s primary source of data, by industry, is derived from the Investment Manager’s research analyst/s and portfolio manager/s, supplemented by external data providers.
I. Limitations to methodologies and data
What are the limitations to the methodologies and data sources? (Including how such limitations do not affect the attainment of the environmental or social characteristics and the actions taken to address such limitations)
- Limitation to the methodology
Inherent limitations to the methodology exist. In addition to analyst and portfolio manager analysis and engagement discussions, the methodology is built on and supported by external data points that are developed within the limitation of the data sources and company provided information.
- Limitation to the data sources
The major challenge is the data availability for certain ESG factors – for which the Investment Manager seeks to engage directly with the project developer.
J. Due diligence
What is the due diligence carried out on the underlying assets and what are the internal and external controls in place?
The Fund carries out due diligence on the underlying assets in the investment process on a regular basis as described under the section “F. Monitoring of environmental or social characteristics”.
K. Engagement policies
Is engagement part of the environmental or social investment strategy?
☐ Yes
☒ No
If so, what are the engagement policies? (Including any management procedures applicable to sustainability-related controversies in investee companies)
N/A
L. Designated reference benchmark
☐ Yes
☒ No