Sustainable Finance Disclosure Regulation

Sona Asset Management (UK) LLP website disclosures pursuant to the EU Sustainable Finance Disclosure Regulation (2019/2088) of the European Parliament

The EU Sustainable Finance Disclosure Regulation (“SFDR”) requires certain firms to make public and client facing disclosures on sustainability matters. Article 4 of SFDR requires firms to disclose whether they consider the adverse impacts of investment decisions on sustainability factors. Sona Asset Management (UK) LLP (“Sona” or the “Firm”) does not currently have a formal policy and process for considering such adverse impacts, although periodically may do so at its discretion.

SFDR regulation applies to all financial market participants and financial advisors in the EU, with EU shareholders and those marketing in the EU, setting out clear disclosure requirements when it comes to ESG considerations. Since March 2021, SFDR requires that UCITS and AIFMs must designate investment products as an Article 6, 8 or 9 fund, and make certain disclosures in keeping with this choice. These pre-contractual disclosures are required to ensure that investors have greater transparency before entering an investment product or accepting advice. These are customarily outlined in a funds’ Prospectus or Offering Document.

Sona manages or advises Article 6 funds, meaning they are funds that neither have a sustainable investment objective, nor do they embrace investment in assets with environmental or social benefits. This is primarily based on the assessment of the Firm’s current trading strategies. This, however, will be reviewed on an ongoing basis to ensure the correct categorisation is made.

For Article 6 products, there is a requirement to publish a Principal Adverse Impact (PAI) statement or explain the choice not to. As the Firm employs fewer than 500 staff, there is no requirement to publish a PAI.