Cadmos engagement funds meet the highest standards of sustainable finance.

“We are proud that the Buy & Care strategy developed over the past 15 years has been recognized for its positive additional impact,” said Melchior de Muralt, Managing Partner of de Pury Pictet Turrettini. The flagship funds Cadmos European Engagement Fund, Cadmos Swiss Engagement Fund and Cadmos Peace Investment Fund are aligned with Art. 9 SFDR requiring the highest level of pre-contractual information and ongoing transparency on sustainability risks, characteristics and objectives.

Following the ambitious targets set by the Paris climate agreement, the European Union initiated a broad “Sustainable Finance Action Plan” in 2018 to stimulate a resilient, climate change, and carbon neutral economy by 2050. In order to redirect capital flows, several regulatory initiatives aim to promote high-quality and impactful sustainable finance. The Sustainable Finance Disclosure Regulation (SFDR) introduces since March 2021 transparency requirements on the sustainability of all financial products promoted in the EU.

Cadmos European Engagement, Cadmos Swiss Engagement and Cadmos Peace Investment funds falling under Article 9 of the European Directive require the most stringent pre-contractual information (notably in the prospectus) and permanent transparency on risks, characteristics and sustainability objectives. This distinction confirms our strong and historic commitment to sustainable finance. It is mainly due to our Buy & Care strategy, which emphasizes both quality stock selection and shareholder engagement with the aim of generating positive impacts.

Managed by Comgest and advised by de Pury Pictet Turrettini, the Cadmos Emerging Markets Engagement Fund will be classified as a section 8 according to the manager’s ambitions. Finally, the Cadmos Balanced CHF fund is classified as an article 6 SFDR. However, even for these funds, the integration of ESG risks is an integral part of the investment process and our Buy & Care voting and engagement policy applies to the equity part of the portfolios. The specificities of emerging markets as well as the lack of maturity of sustainable strategies in certain asset classes (alternative funds, commodities, etc.) or sub-asset classes (high yield bonds, convertible funds, etc.) necessary for the diversification of the balanced fund, have indeed compelled us to be more conservative for these funds.

de Pury Pictet Turrettini welcomes the European Union’s effort to force our industry to be more transparent. We demand the same transparency from the companies in which we invest. These new standards will accelerate the fight against green- and impact washing. At the same time, they will also help accelerate the maturity of the sustainable finance market and increase investors’ ability to distinguish strategies that generate real, tangible and additional impacts.