SFDR Disclosure

SFDR Disclosures – Synthesis Capital Management B.V. and of SynCap Transactional Commodity Trade Finance Program I

Synthesis Capital Management B.V. (the AIFM), a Dutch-based registered alternative investment fund manager within the meaning of article 3(2)(b) of Directive 2011/61/EU of 8 June 2011 on alternative investment fund managers (AIFMD), makes the following disclosures for the purposes of Regulation (EU) 2019/2088 of 27 November 2019 on sustainability‐related disclosures in the financial services sector (SFDR) and Regulation (EU) 2020/852 of 18 June 2020 on the establishment of a framework to facilitate sustainable investment (the Taxonomy Regulation). As clarified by the European Commission in its Q&As on sustainability-related disclosures published on 14 July 2021, the AIFM must comply with certain SFDR requirements applicable to registered alternative investment fund managers.

The AIFM acts as registered alternative investment fund manager of the SynCap Transactional Commodity Trade Finance Program I (the “Program”).

The Program qualifies under article 6 of the SFDR as it does not promote environmental or social characteristics (article 8 of the SFDR) nor does it have sustainable investments as its objective (article 9 of the SFDR).

I. AIFM-related disclosures

Transparency of sustainability risk policies and transparency of the integration of sustainability risks – article 3(1) and article 6 of the SFDR

General overview

A sustainability risk refers to 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 an investment.

The AIFM reviews and assesses potential sustainability risks within the meaning of SFDR as part of its decision-making process and ongoing risk monitoring with respect to investments made or to be made by the Program and has integrated such review into its internal procedures and policies, as further detailed hereafter.

Relevance of sustainability risks

Sustainability risks may affect the Program’s performance having regard to the types of investments made or to be made in accordance with its investment policy and objectives, meaning that if any such risk occurs, returns on investments may be materially negatively affected as a result. Investors and potential investors should note that it is difficult to assess with reasonable certainty the probability of the occurrence of such risks and the likely impact of such materialized sustainability risks on the value of investments.

The identification and assessment of risks, including sustainability risks, will take place on an ongoing basis if and when investments are made in accordance with the Program’s investment policy. Such review is performed by the AIFM, as summarized below:

  1. prior to an investment decision being taken on behalf of the Program, the AIFM identifies the material risks, including sustainability risks, associated with the proposed investment.
  2. these risks form part of the overall investment proposal to be assessed by the AIFM.
  3. ultimately and following its assessment, the AIFM makes the relevant investment decision having regard to the Program’s investment policy and objectives and subject to the Investment Committee’s approval.

The identification, assessment and, to the extent possible, mitigation of sustainability risks is embedded into the above process through the implementation of the AIFM’s internal policy, available [here].

Transparency of remuneration policies in relation to the integration of sustainability risks – article 5(1) of the SFDR

For the purposes of article 5(1) of the SFDR, the AIFM declares that it has not put in place a remuneration policy in light of the fact that it qualifies as a registered alternative investment fund manager and thus does not fall under such requirement under the AIFMD.

II. Program-related disclosures

Transparency of other financial products in pre-contractual disclosures and in periodic reports –
article 7 of the Taxonomy Regulation

The investments underlying the Program do not take into account the EU criteria for environmentally sustainable economic activities.