For our activity as asset managers of collective assets in accordance with the Swiss Federal Law on Financial Institutions, we hold a license from the Swiss Financial Market Supervisory Authority FINMA and are subject to its supervision.
Swiss Financial Market Supervisory Authority FINMA
Laupenstrasse 27
3003 Bern
Phone: +41 31 327 91 00
e-mail: info@finma.ch
Web: www.finma.ch
IFS Independent Financial Services AG is affiliated with the independent ombudsman institution Finanzombudsstelle Schweiz (FINOS), which is recognized by the Swiss Federal Department of Finance. In the event of any disputes about legal claims between our customers and IFS Independent Financial Services AG, our customers can contact this ombudsman at any time. Information on any administrative costs in connection with mediation procedures can be found on the website of the ombudsman's office.
Financial Audit Office Switzerland (FINOS)
Talstrasse 20
8001 Zürich
Phone: +41 44 552 08 00
e-mail: info@finos.ch
Web: www.finos.ch
You can find our client information sheet on the Federal Act on Financial Services FinSA here:
Transparency in the strategies (Art. 3 SFDR )
In our understanding, sustainability encompasses the ecological, social and economic systems of our world. Sustainability means using resources in such a way that the needs of the present generation are met without jeopardising the requirements and satisfaction of the needs of future generations.
Changes in market dynamics, regulations and other economic or geopolitical developments can affect the value of investments (the concept of stranded assets). For example, the introduction of a carbon tax can reduce profitability (transitory risks) or the effects of climate change can cause physical damage to assets (physical risks).
Specifically, such "ESG risks" can arise from the following three categories, all of which are also associated with reputational risks:
Environmental risks (Environmental "E")
These consist of climate change, environmental pollution, scarcity of resources, loss of biodiversity and other risks.
Social risks (Social "S")
Social risks are defined in particular by issues of equality, product responsibility, human rights, child labour and labour law. Changes in societal, social and cultural expectations and movements can also lead to tensions here.
Corporate governance ("G" governance)
Aspects of transparency, control processes, accountability and legal requirements as well as ethical management and values of a company are important here.
Our approach
As a responsible financial boutique, we consider sustainability risks to be part of our thinking. Sustainability risks can directly or indirectly influence the value of an investment. However, as ESG factors are still assessed very subjectively and there is no uniform standard for this, IFS addresses the issue of sustainability risks primarily through a balanced diversification of investments and secondly by taking ESG factors into account using recognised data providers. The specific criteria are defined in detail depending on either the product prospectus or the client.
Individual values and impact
Sustainability can be interpreted differently from client to client depending on their individual values and beliefs and can be interpreted differently when selecting investments. In the absence of a global standard, we believe that a careful balance between objective sustainability criteria and the individual expectations of our clients is the key to a successful investment approach in a rapidly changing regulatory environment.
Monitoring and control
ESG requirements for specific client and product requirements are monitored automatically and regularly.
Challenges regarding ESG data
- Data availability: Many companies do not yet publish comprehensive data on sustainability factors, which makes a complete and accurate assessment difficult.
- Data quality and reliability: The available data is often inconsistent and comes from different sources, leading to inconsistencies and uncertainties.
- Limited measurability: Some sustainability factors are difficult to measure quantitatively and require complex qualitative assessments that are not always objective.
- Lack of globally applicable standards: The methodologies and weightings of ESG-relevant ratings and KPIs are not standardised and are in a constant state of flux. Particular caution is required when interpreting and applying them in order to obtain meaningful results.
Transparency of adverse sustainability impacts (Art. 4 SFDR)
Article 4 of the Sustainable Finance Disclosure Regulation (SFDR): Disclosure and identification of Principal Adverse Impacts ("PAIs") on sustainability factors in investment decisions.
We are aware of the importance of these requirements and have decided to make use of the "opting out" option at present and not to systematically include PAIs in our investment decisions. This decision is based on careful consideration of the requirements of a well-founded application of PAIs and the current data situation, in particular the currently still limited availability and reliability of data and the currently limited measurability and feasibility (see also the section above).
However, our decision not to systematically integrate PAIs into the investment process for the time being does not mean that we are ignoring the relevance of sustainability risks. Rather, we are focussing on a flexible approach that allows us to respond to the individual preferences and requirements of our clients. We are closely monitoring developments in this area and will regularly review our decision in order to be able to react appropriately to changes in the data situation and regulatory requirements.
Our aim is to ensure responsible and transparent asset management that is in line with the needs of our clients.
Sustainable remuneration policy (Art. 5 SFDR)
In our privately held asset management boutique, we attach great importance to sustainability in all aspects of our business, including our remuneration policy. In accordance with Article 5 of the SFDR, our remuneration policy is designed to promote long-term value creation and responsible behaviour.
Our remuneration structure provides long-term incentives that go beyond short-term financial targets. Performance-related remuneration is designed in such a way that it supports sustainable and responsible behaviour and avoids conflicts of interest.
Through this sustainable remuneration policy, we promote responsible behaviour that benefits both our customers and our employees.