At Troviq, we believe that sustainability contributes to improved risk adjusted returns, therefore Environmental, Social and Governance (ESG) characteristics of an investment should be considered. For Troviq, this is embedded in our investment process as Private Markets require long term commitments; hence each investment case should be sustainable.*
Troviq itself is a long-term partner to our clients and investors and therefore adopts a similar approach to sustainability as we expect from the fund managers whose funds we invest in.
Troviq Private Markets Group Ltd and its subsidiaries, including Troviq Investment Management B.V., (collectively “Troviq”) makes the following disclosures in accordance with articles 3, 4 , 5 and 10 of the Disclosure Regulation.
*Capital at risk - value of investments can go up as well as down.
The inclusive thinking needed on an investment level, is also applied on Troviq as a company itself. We want our business to be sustainable and apply our investment philosophy on our activities as well. Whether it is our approach with digitalising the way investments can be made by our investors in Private Markets, or how Troviq employees can make the best use of available resources. Troviq is also an inclusive and equal opportunity employer.
* Value of investments can go up as well as down. There is no guarantee that a (fund) investment will achieve its set objectives and generate more returns than what is invested.
A ‘sustainability risk’ within the meaning of Article 2 (22) of SFDR is an environmental, social or governance (ESG) event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment. For Troviq, sustainability risks are risks which, if they were to crystallise, would cause a material negative impact on the value of the portfolio of investments.
Prior to any investment, Troviq conducts due diligence. Part of the due diligence includes assessing the risks attached to a potential investment opportunity. Troviq mainly invests in Private Markets funds. For these funds, Troviq is not the manager of the fund and as such does not have discretion over the investment companies that form part of these funds. Therefore, the assessment of sustainability risks takes place within our due diligence on fund managers prior to investment.
Troviq assesses whether fund managers take sustainability factors into account in their investment approach. These considerations are aimed at the fund’s exposure to ESG risks that could have an adverse effect on the investment and are assessed as appropriate in Troviq’s investment memorandum and reviewed by Troviq’s Investment Committee.
In accordance with Article 4 (1) sub b of the Disclosure Regulation, Troviq does not consider principal adverse impacts of investment decisions on sustainability factors as outlined in Article 4 sub 1 (a) of the Disclosure Regulation. Consequently, Troviq does not make the disclosures as described in Article 4 sub 1 (a). Given the size of Troviq as an organisation, such disclosure would not be proportional. Furthermore, given that Troviq invests primarily in Private Markets funds whose portfolios ultimately hold the investment companies, Troviq would have no access to or direct influence over such portfolio company due given the portfolio fund will be managed by an external Private Markets manager.
Troviq pays staff a combination of fixed remuneration (salary and benefits) and variable remuneration (including discretionary bonuses). Variable remuneration for relevant staff takes into account compliance with all policies and procedures, including those relating to the impact of sustainability risks on the investment decision making process.
Troviq currently does not manage a fund that promotes environmental and/or social characteristics or a combination of those characteristics pursuant to Article 8 and/or Article 9 of the SFDR nor does Troviq currently manage a fund that has sustainable investment as a specific objective.