In accordance with the EU’s Sustainable Finance Disclosure Regulation (2019/2088) (“SFDR”), Alpha Future Funds (“AFF”) provides information concerning the integration of sustainability risks into its investment decision-making processes.
AFF, acting as an agent lender in Agency Securities Financing, incorporates sustainability risks into its discretionary investment decision-making. Sustainability risk, as defined by SFDR, encompasses environmental, social, or governance events that could potentially negatively impact investment value.
Within Agency Securities Financing, AFF reinvests cash collateral generated from securities lending into various investments under Portfolio Management Activities. These investments may include shares, debt instruments, and units in money market funds. AFF operates within predefined investment guidelines aimed at preserving principal, maintaining portfolio liquidity, and maximizing income to support securities financing activities.
AFF, categorized as a “financial market participant” under SFDR, manages sustainability risks alongside other risks within its risk management framework. Sustainability risk is assessed as part of AFF’s broader risk management strategy and is one of several factors considered in investment decision-making.
AFF’s policies regarding the consideration of sustainability risks are guided by the Alpha Future Funds Environmental and Social Policy Framework, which is integrated into operational procedures across the organization.
For a detailed disclosure statement regarding sustainability considerations in other areas of Alpha Future Fund’s activities, please refer to the relevant disclosure statement accessible here.
Article 4 Disclosure
AFF further acknowledges its obligation under SFDR to disclose information concerning adverse sustainability impacts in its investment decisions.
AFF recognizes sustainability risks as environmental, social, or governance events that may adversely affect investment value. These risks are integrated into AFF’s investment decision-making processes across all relevant activities, including Agency Securities Financing.
In the context of Agency Securities Financing, AFF lends securities to borrowers against collateral and reinvests cash collateral into various investments. These investments are made within predefined guidelines aimed at achieving specific objectives related to principal preservation, portfolio liquidity, and income maximization.
AFF’s approach to sustainability risk in investment decision-making is informed by the Alpha Future Funds Environmental and Social Policy Framework, which is embedded into operational procedures throughout the organization.
Sustainability risk is evaluated alongside other risks within AFF’s comprehensive risk management framework. While sustainability risk does not automatically preclude investment decisions, it is one of several factors considered in determining overall risk.
For detailed information regarding sustainability considerations in other areas of Alpha Future Fund’s activities beyond Securities Services, please refer to the relevant disclosure statement accessible here.