Sustainability Risk

Remuneration Policy

fundcraft’s remuneration policy aims to:

• Ensure that remuneration is in line with the business strategy, objectives, values and interests of fundcraft, its clients’ funds and the investors of the clients’ funds, where applicable
• Not encourage risk‐taking which is inconsistent with the risk profiles, rules or articles of incorporation or management regulations of fundcraft or its clients’ funds
• Ensure consistency with and promotion of sound and effective risk management to avoid excessive risk taking
• Ensure consistency with the consideration of sustainability risks
• Avoid or manage conflicts of interest

fundcraft has split the remuneration into a base salary, evenly paid out monthly, and a variable component paid as a bonus once a year. The base salaries for all employees are based on an individual’s role and the level of responsibility for the upcoming term. It is contractually fixed, reviewed once a year and typically only significantly adjusted if there is a role change. The variable component is relative to individual and team objectives as well as to the Company’s overall achievements. The amount is defined in advance at the beginning of term in accordance with the upcoming term’s objectives and expectations for the overall performance of the Company.

In addition to the remuneration, fundcraft offers long-term incentives in the form of equity-related compensation. This way, employees are more focused on sustainable value creation and avoidance of inappropriate risk-taking or short-term profit maximisation at the expense of long-term value generation for our clients and sustainability. A Good and Bad Leaver policy for the long-term incentive is in place.

fundcraft believes that the Remuneration Policy, and an individual employee’s remuneration, must be consistent with and promote sound and effective risk management and not encourage risk-taking that exceeds the level of tolerated risk of fundcraft. Among several risk-limiting features, fundcraft’s Remuneration Policy includes the application of nonfinancial metrics, such as an assessment of an employee’s compliance with the fundcraft’s Sustainability Risk Policy, where applicable.

Principal Adverse Impacts (PAIs) disclosure

Principal Adverse Impacts (PAIs) are negative impacts on sustainability factors (i.e. environment, social and governance factors) that may materialise or expand as part of an investment decision or advice.
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Please review fundcraft’s Statement on principal adverse impacts of investment decisions on sustainability factors