Disclosure of sustainability-related information about financial products

Stefnir wants to provide fund owners with useful, timely and correct information about how funds in the company's operations have implemented the methodology of responsible investments into their operations. Compliance with the regulation of the European Parliament and the Council (EU) no. 2019/2088 on sustainability‐related disclosures in the financial services sector plays a key role in this. The implementation of the regulation is a project that will change and develop as the information we use in our operations becomes better and more useful for managing funds.

This page displays information that is important for unitholders of Stefnir's funds before making a decision related to a possible purchase in funds. During the time that the unitholder holds an investment in Stefnir's article 8 funds, information related to sustainability will appear in the prospectus, key information document, in the fund's annual financial statements and on the fund's information pages.

If you have questions about Stefnir's sustainability-related disclosures or investments in Stefnir's funds, you are welcome to send an email to
info@stefnir.is

Stefnir’s declaration on sustainability-related risks in investment decisions (article 3 SFDR)

Stefnir has implemented policies and processes in its operations that are part of the investment process of funds, and sustainability risk is assessed to the extent of the available reliable information from issuers of financial instruments when the investment decision is made. Sustainability risk refers to an environmental, social or governance event or condition that, if it occurs, could cause an actual or potential significant negative impact on the value of investments.

In the company's policy on responsible investments, you can find information on how sustainability risk is assessed when making investment decisions. Policy on responsible investments can be found here.

Stefnir’s declaration on principle adverse impacts (PAI) of investment decisions (article 4 SFDR)

Stefnir does not take into consideration principle adverse impacts of its investment decisions on sustainability factors at the entity level in the way that is assumed in point a, paragraph 1. Article 4 in the regulation of the European Parliament and the Council (EU) no. 2019/2088 from 27 November 2019 on the provision of information related to sustainability in the field of financial services. The reason that Stefnir, at the entity level, does not take into consideration the principle adverse impacts of investment decisions on sustainability factors is that information from the company itself will not be useful to investors in any way. However, the information of funds that have adopted and implemented a responsible investment methodology that takes into account the assessment of negative effects on sustainability will be available to unitholders in the pre-contractual disclosures and in the ongoing disclosures of the relevant funds.

Declaration on how sustainability related risk is implemented into the remuneration policy

Stefnir publishes its remuneration policy annually after the approval of the shareholders' meeting. The main consideration regarding Stefnir's employee benefits is to always offer competitive wages so that Stefnir can attract and retain excellent staff. It is also Stefnir's goal to ensure that jobs at Stefnir are desirable in the eyes of qualified individuals. When formulating the remuneration policy, it is important to ensure that it does not encourage excessive risk-taking, but rather promotes the incorporation of long-term perspectives as a guiding principle, ultimately ensuring the sustainable operation of Stefnir. The remuneration policy aims to ensure that the company's culture, strategy, values, sustainability, and long-term views of Stefnir's shareholders and other stakeholders go hand in hand.

At Stefnir, a variable remuneration system may be in operation, if the board deems that variable remuneration is appropriate to achieve the main objectives of the salary policy according to the remuneration policy. The variable remuneration system is supposed to encourage employees to create sustainable long-term results in a transparent way, where measures are defined from financial and non-financial aspects, including the progress of ESG issues within the company. The variable remuneration system is not intended to lead to excessive risk-taking and is granted in accordance with the company's risk appetite.

According to the board's decision, a variable remuneration system is in operation for the year 2024, and all employees are participants in the scheme, with the exception of the chief risk officer who supervises the system. The measures that were determined for the year 2024 and have a direct impact on mitigating risks related to sustainability include the employee's participation in the progress of projects within the company concerning ESG factors, participation in continuing education including education in the area of responsible investments, compliance with the equal pay policy as well as other aspects related to compliance with laws, regulations and the company's internal rules.

Stefnir’s remunerations policy can be found here.