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23 August 2024

Infond Funds Lead the Way in Sustainable Investing

Sava Infond, a member of the Sava Insurance Group, has expanded its commitment to responsible investing by introducing a responsible investment policy for 11 additional sub-funds, building on the existing principles of Infond Družbeno Odgovorni. Of the 19 sub-funds under the Infond Umbrella Fund, 12 promote environmental and social characteristics in accordance with Article 8 of SFDR.

What is Socially Responsible Investing?

Socially responsible investing highlights the competitive edge of companies that invest in their own capabilities, people, and communities, adhering to the ESG principles of Environmental, Social, and Corporate Governance responsibility.

The impact of investing with a focus on environmental and social characteristics can be summarized as follows:

• Socially responsible investors decrease demand for investments that fail to meet sustainability criteria.
• Reduced demand impacts the stock prices of such issuers.

In this way, socially responsible investing encourages issuers of securities to adopt socially responsible and sustainable practices.

How Will Environmental and Social Characteristics Be Promoted?

Fund managers will promote environmental and social characteristics by:

• Excluding investments in companies operating in controversial and harmful sectors;
• Selecting investments that are considered less risky from an ESG perspective by specialized providers;
• Adhering to good governance practices;
• Considering principal adverse impacts on sustainability factors.

Infond Družbeno Odgovorni, an equity sub-fund that has long adhered to sustainability principles, will, in addition to the above-mentioned methods of promoting environmental and social characteristics, select investments for the sub-fund based on:

• A carbon footprint and greenhouse gas intensity: at least 20% lower than that of a benchmark index;
• A minimum of 20% sustainable investments.

The other 7 sub-funds, Infond Trgi v Razvoju, Infond Kitajska, Infond Surovine in Energija, Infond Megatrendi, Infond Dividendni, Infond Globalni Fleksibilni, and Infond Naložbeni Cilj 2040, will not invest in issuers operating in activities deemed harmful to society:

• Thermal coal;
• Tobacco (production and sales);
• Operations in controversial weapons.