GAWA Capital's sustainable investment objective is to provide excluded rural populations in developing countries with access to finance by providing investment capital for the development and growth of Social Enterprises.
GAWA Capital ("the Company") and the funds ("the Funds") it promotes have a sustainable investment objective within the meaning of Article 9 of the SFDR. The Funds have not designated an index as a reference benchmark, therefore qualify as a financial product as defined under Article 9(2) of the SFDR.
GAWA takes a generic approach with respect to how Sustainability Risks and the principal adverse impacts of Sustainability Factors are being taken into account with respect to the Funds.
How Sustainability Risks are integrated into investment decisions
To the extent that sustainability factors represent material risks and/or opportunities to maximising long-term risk-adjusted returns, they will be considered as part of GAWA's investment decision making.
Sustainability risks are also integrated in the remuneration policies of GAWA to the extent that they are considered in application of the principle of proportionality. Likewise, sustainability is primarily considered as GAWA ensures that the variable remuneration of directors and employees does not encourage the assumption of excessive risks in relation to the investments’ sustainability risks.
With respect to the Funds, the strategy takes into account material Sustainability Factors in the process of investment analysis and decision-making. The strategy approaches sustainability factors as an enhanced analysis of investee companies, on top of conventional financial analysis and evaluation, to better understand companies’ risk and return profiles and their long-term financial performance prospects.
As part of the strategy, GAWA also actively engages with investee companies where relevant, to encourage positive changes and continuous improvement with regards to their sustainability related performance, more specifically with the Technical Assistance provided by Huruma Fund. The engagement activities further enable GAWA to form a holistic and forward-looking view on companies’ sustainability risks for investment decisions.
Adverse Sustainability Impacts
GAWA takes a generic and specific approach with respect to how principal adverse impacts (PAIs) of sustainability factors are being taken into account with respect to the company and its funds. Gawa considers PAIs of investment decisions as set out in Article 4 of the SFDR, taking into consideration the indicators of table 1 of annex II of the Regulatory Technical Standards (the “RTS”), those deemed relevant from tables 2 and 3, as well as other customized indicators. These indicators will be gathered from invested entities on an annual basis and the information on PAIs will be available in the periodic reports.