Sustainability

The Kahler & Kurz equity fund promotes environmental and social characteristics within the meaning of Article 8 of the Disclosure Regulation and pursues its own ESG strategy. ESG is understood to mean the consideration of criteria from the areas of environment (Environmental), social (Social) and responsible corporate management (Governance). The aim is to achieve a long-term increase in value while taking these investment criteria into account.

Sustainability philosophy in the investment process

As part of the holistic analysis of companies, the investment process places a strong focus on aspects such as the longevity of the business model, competitiveness, growth prospects and balance sheet quality of the company.

In addition, special attention is paid to good corporate governance and a positive corporate culture, which are important for the long-term positive development of the company. Corporate management should act in the interests of the owners. The following points can be cited as exemplary metrics:

• Suitability and incentive system for management
• Communication policy towards the company owners and customers
• Assessment of corporate governance by stakeholders
• ethical business practice
• Compliance and risk management

In addition, data and analyses from the established data provider MSCI ESG Research are used for ESG analyses:

Systematic ESG screening and exclusion criteria

To additionally systematically ensure compliance with sustainability criteria, the fund advisor works with one of the world's leading providers of sustainability research, MSCI ESG Research LLC. The majority of investments are made in shares that, in addition to the aforementioned aspects in the investment process, have been selected taking into account sustainability criteria and have been analyzed and positively assessed according to environmental and social criteria.

Only shares of companies that have an ESG rating of at least BB in a rating system from AAA to CCC according to the methodology of MSCI ESG Research are considered positive. The rating is based on environmental, social and governance criteria.

In addition, no shares are acquired in companies that violate the principles of the UN Global Compact. The United Nations Global Compact is the world's largest and most important initiative for responsible corporate governance and summarizes ten principles in the four categories "human rights," "labor standards," "environmental protection" and "corruption prevention.

Also excluded from the acquisition are shares in companies whose sales*.

• more than 10% from military equipment,
• to more than 0% with outlawed weapons or
• to more than 5 % of tobacco production or
• consists of more than 5% coal.

In addition, the investment strategy reflects a broader consensus of values beyond applicable industry standards (as of July 2022).

Additionally excluded are investments in shares of companies whose sales

• more than 5 % from the generation of nuclear energy (nuclear power) or
• more than 5 % from oil sands/fracking or
• consists of more than 5% adult entertainment.

Furthermore, no bonds - as a substitute for liquidity - are acquired from countries classified as "unfree" according to MSCI's Freedom House Index.

*(from production and/or distribution)