What is it?
The reserved Italian AIF established in closed form named "Euregio+ PMI" and managed by Euregio Plus SGR S.p.A. is a reserved Italian mutual investment fund falling within the scope of Directive 2011/61/EU (reserved Italian AIF) as defined by Article 1(1)(m-quater) of Italian Legislative Decree no. 58 of 24 February 1998 (the "Consolidated Law on Finance" or "TUF").
The Fund promotes environmental or social characteristics – or a combination thereof – within the meaning of Article 8 of Regulation (EU) 2019/2088 and its investment decisions incorporate the assessment of sustainability risk, understood as "environmental, social, or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment".
The purpose of the Fund is the collective investment of the capital raised from the assets envisaged in the Regulations, with the objective of generating income and preserving the real value of the Fund's net assets in the medium term, without implying the assumption of a performance obligation on the part of the AMC. Typical Investments mainly include unlisted companies having their registered office and/or operational headquarters in the Trentino-South Tyrol region. When making investments, the AMC also takes into account the relevant effects in terms of tax revenues for the Trentino-South Tyrol region.
The AMC only considers companies with a turnover that, at the time of the evaluation of the investment, is equal to or greater than two million euros, reserving the right to invest in companies with an even lower turnover if they are part of consortia of companies or business networks or other forms of connection and/or coordination of groups of companies (the "Target Companies"). At the time of the assessment, qualitative elements are also considered, such as a well-defined market position, capable management, proven financial solidity, an adequate current and/or prospective profitability and a significant potential for value creation characterized by stability and growth in cash flows over time.
The AMC prefers companies that: (i) have cogent projects for national and international development, or for company relaunches; (ii) have concrete aggregation projects in place aimed at strengthening their positions in national and/or international markets; (iii) have the opportunity to exploit particular brands, patents or know-how; (iv) use advanced and innovative processes and technologies.
In addition to elements of a strictly economic and financial nature, when assessing investment opportunities the AMC also considers the ESG risk profile ("E" environmental, "S" social, "G" governance) of the Target Companies in order to promote environmental, social and governance factors. The ESG risk profile is determined by an external info-provider that uses a scoring system to measure the exposure of these companies to the three ESG factors, thus producing an ESG Rating.
Responsible investment
This financial product promotes environmental or social characteristics or a combination thereof, but does not have sustainable investment as an objective.
The process of evaluating and selecting illiquid securities investments requires the AMC not only to consider economic and financial factors, but also the environmental, social and governance aspects of the Target Companies through a combination of exclusion, positive screening and engagement strategies.
When evaluating and selecting investments, environmental and social characteristics are promoted primarily through value, regulatory and/or industry exclusion strategies, such as companies and issuers active in the production or sale of products related to gambling and betting, pornographic material and illegal economic activities. In order to limit the sustainability risk of illiquid products, exposure is minimised to issuers that at the time of the evaluation have an ESG risk profile quantified using an ESG score or rating below the minimum level acceptable to the AMC.
The integration of ESG factors also presupposes the pursuit of a positive screening strategy aimed at selecting Target Companies having an appropriate ESG risk profile at the time of the investment. Potential Target Companies include those where structural actions to improve their ESG risk profile are not necessary, but that simply require certain improvements to fully exploit the development and innovation opportunities brought about by sustainability trends.
Finally, thanks to an engagement policy, the AMC promotes the improvement of the ESG profiles of the companies in its portfolio through the definition of a series of sustainability objectives measured according to specific KPIs that are constantly monitored.
The method adopted by the AMC for the integration of ESG factors in the investment process of the Euregio+ PMI Fund involves the use of a platform developed by an external info-provider. The tool has an algorithm based on European and Italian regulations and compliant with the main international standards, tailored to small and medium-sized enterprises and validated by a decentralised scientific committee, which guarantees transparency, objectivity and impartiality in the processing of the result. This tool allows for the measurement not only of the ESG risk profile of individual Target Companies (both at the assessment and post-investment monitoring stages), but of the portfolio in relation to each E, S, G factor, taking into account the investments for which the positive screening and engagement strategy is expected to be applied.
For more information on how the product promotes environmental and social characteristics, see the Disclosure pursuant to Article 24 of Regulation (EU) 2022/1288.
Type of investor
The purchase, for any reason, of Units in the Euregio+ PMI fund is reserved to Professional Investors or, subject to acceptance by SGR, investors who are neither Professional Investors nor natural persons that, pursuant to art. 14, para. 2 of Ministerial Decree no. 30 of 5 March 2015, request SGR to subscribe or purchase Units for a total not less than that set out by the applicable legislation at the time in question.