Product Level SFDR
Disclosure

Product Name: KORION LIFE SCIENCES, F.C.R.
Website disclosures pursuant to Article 10 of Regulation (EU) 2019/2088 and Articles 25 to 36 of Commission Delegated Regulation (EU) 2022/1288.
Product name: KORION LIFE SCIENCES, F.C.R. (“Korion” or the “Fund”).
a. Summary
  1. Non sustainable investment objective: this financial product promotes social characteristics but does not have as its objective sustainable investments.
  2. Environmental or social characteristics of the financial product: as a Fund of Funds, the Fund is an Article 8 fund that promotes responsible management practices among its invested The Fund invests in funds that in turn invest in cutting-edge medical innovation. The Fund will promote the following social characteristics, aligned with the SDGs:
    • Characteristic 1: promotion of SDG 3, target 3.4: health and wellbeing
    • Characteristic 2: promotion of SDG 9, target 9.5: industry, innovation and infrastructure
  3. Investment strategy: the Fund invests in funds in the Life Sciences sector. These underlying funds are focused on finding those innovations that allow humanity to live healthier and more sustainable lives. The funds Korion invests in may include, but are not limited to, activities such as biopharmaceuticals, medical devices, medical technology, diagnostic services, and care services digital medicine. Korion’s underlying funds are also focused on solving specific pathologies in diseases that impact the population worldwide, being frequent diseases such as neurodegenerative, cardiovascular or oncology diseases.
  4. Proportion of investments: we foresee that the Fund will apply the Characteristics to 100% all of its invested funds.
  5. Monitoring of environmental or social characteristics: the indicators used to meet the characteristics mentioned are as follows:
    • Characteristic 1: Number of funds invested that support SDG 3, target 3.4
    • Characteristic 2: Number of funds invested that support SDG 9, target 9.5
  6. Methodologies: for both Characteristics, the Fund will analyse through a questionnaire, the number of funds invested that support either target 3.4, target 9.5, or both.
  7. Data sources and processing:  Korion, supported by an external ESG consultant, engages with the underlying funds and monitors their progress against the characteristics promoted, as well as minimum ESG requirements aligned with UN PRI recommended practices.
  8. Limitations to methodologies and data: there are inherent limitations of ESG methodologies and data collected, including lack of consistency, comparability and methodology, from invested funds as well as standard-setting organizations. Korion intends to address these limitations by engaging with the funds, as well as undertaking an independent research and verifying internally the data collected.
  9. Due diligence: In the due diligence phase, carried out internally, the Fund use a questionnaire to register whether the potential invested fund contributes positively to the promoted Characteristics (SDGs 3.4 and 9.5). Our due diligence questionnaire follows the ILPA guidelines as well as the United Nations.
  10. Engagement policies: engagement with invested funds is part of Korion’s responsible investment strategy, including discussions with funds’ managers. These discussions will be related to 1) the promoted Characteristics and 2) the funds’ ESG overall performance. Regarding 2), Korion engages with fund managers to enhance, to the extent possible,their ESG performance and transparency.
  11. Designated reference benchmark:no index has been designated as a reference benchmark to meet the Characteristics.
Declaraciones web de acuerdo al Artículo 10 del Reglamento (EU) 2019/2088 y Artículos 25 a 36 del Reglamento Delegado (EU) 2022/1288.
Denominación del producto: KORION LIFE SCIENCES, F.C.R. (“Korion” o el “Fondo”).
a. Resumen
  1. Sin objetivo de inversión sostenible: este producto financiero promueve características medioambientales o sociales pero no tiene como objetivo una inversión sostenible.
  2. Características medioambientales o sociales del producto financiero: como Fondo de Fondos, este Fondo se define como Articulo 8 y promueve las prácticas de gestión responsables entre los fondos subyacentes. El Fondo invierte en fondos subyacentes que a su vez invierten en innovación medica puntera. El Fondo promoverá las siguientes características sociales, alineadas con los Objetivos de Desarrollo Sostenible (ODS):
    • Característica 1: promoción del ODS 3, meta 3.4: salud y bienestar
    • Característica 2: promoción del ODS 9, meta 9.5: industria, innovación e infraestructura
  3. Estrategia de inversión: el Fondo invierte en fondos en el sector de Ciencias de la vida. Estos fondos subyacentes están centrados en encontrar aquellas innovaciones que se centren en permitir a la humanidad vivir vidas más sanas y sostenibles. Los fondos en los que invierta Korion pueden incluir, pero no están limitados a actividades como productos biofarmacéuticos, dispositivos médicos, tecnología médica, servicios de diagnóstico y servicios de atención medicina digital. Los fondos subyacentes también están centrados en resolver patologías específicas en enfermedades que impactan a la población a nivel mundial, siendo enfermedades frecuentes como enfermedades neurodegenerativas, cardiovasculares u oncológicas.
  4. Proporción de inversiones: prevemos que el Fondo aplique las Características descritas a 100% de los fondos invertidos.
  5. Seguimiento de las características medioambientales y sociales: Los indicadores utilizados para cumplir con las características mencionadas son las siguientes:
    • Característica 1: Numero de fondos invertidos que apoyan el ODS 3, meta 3.4
    • Característica 2: Numero de fondos invertidos que apoyan el ODS 9, meta 9.5
  6. Metodologías: para cumplir con ambas Características, el Fondo analizará a través de un cuestionario el número de fondos que contribuyen o bien a la meta 3.4, a la meta 9.5, o ambas.
  7. Fuentes y tratamiento de datos:  Korion, apoyado por un consultor ESG externo, establece un dialogo activo y evalúa periódicamente los fondos subyacentes y supervisa su progreso con respecto a las características promovidas, así como los requisitos mínimos de ESG alineados con las prácticas recomendadas por UN PRI.
  8. Limitaciones a las metodologías y a los datos:  existen limitaciones inherentes a las metodologías ASG y a los datos recogidos, incluyendo falta de consistencia, comparabilidad y metodología por parte de los fondos invertidos así como de las organizaciones que configuran los estándares internacionales. Korion tiene la intención de abordar estas limitaciones comprometiéndose con los fondos, además de realizar una investigación independiente y verificar internamente los datos recopilados.
  9. Diligencia debida: En la fase de diligencia debida, realizada de forma interna, el Fondo realiza un cuestionario para registrar si el potencial fondo invertido contribuye positivamente a las Caracteristicas que se pretende promover (metas 3.4 y 9.5) Nuestro cuestionario de debida diligencia está basado en las recomendaciones de ILPA así como en Naciones Unidas.
  10. Políticas de implicación. El dialogo con los fondos subyacentes forma parte de la estrategia de inversión responsable de Korion, incluyendo contacto directo con los gestores de los fondos invertidos. Estas discusiones estarán relacionadas con 1) la promoción de las Características que se pretenden promover y 2) el desempeño ESG general de los fondos. En el caso del apartado 2) Korion establece un dialogo activo con los gestores de los fondos invertidos para mejorar en la medida de lo posible su desempeño ESG así como su transparencia.
  11. Índice de referencia designado: No se ha designado un índice de referencia para cumplir las características medioambientales o sociales que promueve el Fondo.
b. No sustainable investment objective
This financial product promotes social characteristics but does not have as its objective sustainable investment.
c. Environmental or social characteristics of the financial product
As a Fund of Funds, the Fund promotes responsible management practices among its invested funds. The Fund invests in funds that in turn invest in cutting-edge medical innovation. The Fund will promote the following social characteristics, aligned with the SDGs:
  • Characteristic 1: promotion of SDG 3, target 3.4: health and wellbeing “By 2030, reduce by one third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and well-being”.
  • Characteristic 2: promotion of SDG 9, target 9.5: industry, innovation and infrastructure “Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development workers per 1 million people and public and private research and development spending”.
The Fund integrates Environmental, Social, and Governance (ESG) factors into its investment decision-making process to identify ESG risks and opportunities, with a primary focus on contributing to the advancement of the following United Nations’ Sustainable Development Goals.
d. Investment Strategy
Korion is a fund that selects and invests in funds that are solely dedicated to the Life Sciences sector. Korion invests in underlying funds that finance cutting-edge medical innovation. The invested funds are focused on finding those innovations that allow humanity live healthier and more sustainable lives. The funds Korion invests in may include, but are not limited to, activities such as biopharmaceuticals, medical devices, medical technology, diagnostic services, and care services digital medicine. Korion’s underlying funds are also focused on solving specific pathologies in diseases that impact the population worldwide, being frequent diseases such as neurodegenerative, cardiovascular or oncology diseases.
In line with our PRI membership commitment, Korion seeks to assess how the invested funds incorporate ESG issues and opportunities into their investment process. Therefore, Korion has structured a series of binding elements, from screening to exit, that assess the underlying’s funds’ progress in achieving ESG best practices.
Policy to assess good governance:
In evaluating the ESG performance of the investment funds, Korion will engage with the potential investmes on how they, in turn, assess the investees in the following governance-related factors: board structure and composition, the presence of effective management systems, employee relations, compliance with current regulations regarding staff compensation, and tax compliance.
A key point within Korion’s evaluation is to ensure that the invested funds comply with Korion’s exclusions policy, particularly focused on excluding any company that is related with:
  • Human cloning for research or therapeutic purposes;
  • Companies that do not follow “Good Manufacturing Processes (GMP) guidelines”
  • Lack of ethics committees monitoring clinical trials.
e. Proportion of Investments
Investments

#1 Aligned with E/S characteristics
100%

#1B Other E/S characteristics
100%
Investments
#1 Aligned with E/S characteristics
100%
#1B Other E/S characteristics
100%
The Fund will allocate 100% of its assets to category 1B: investments that promote social characteristics but do not qualify as sustainable investments. The Fund does not have as its objective sustainable investment.
#1 Aligned with E/S characteristics includes the investments of the financial product used to attain the environmental or social characteristics promoted by the financial product.
#1B Other E/S characteristics covers investments aligned with the environmental or social characteristics that do not qualify as sustainable investments.
f. Monitoring of environmental or social characteristics
Korion’s social characteristic indicators
In order to properly monitor, measure and control the improvement of the investee’s ESG performance, the Fund has set the following ESG indicators:
  • Characteristic 1: Number of funds invested that support SDG 3, target 3.4
  • Characteristic 2: Number of funds invested that support SDG 9, target 9.5
The above ESG KPIs will be measured and reported on annually.
g. Methodologies
Funds are expected to report annually on the ESG KPIs listed above (see “(h) Data sources and processing”).
Further Detail on KPI indicators
The UN publishes KPIs related to the SDGs that pursue to monitor supra-national impacts. Hence, Korion has put together a questionnaire that uses different tools and methodologies to identify indicators at underlying fund level that allow Korion, to effectively track and confirm the underlying’s funds contribution to the SDGs promoted.
h. Data sources and processing
Data sources: Information is obtained directly from the funds Korion invests in through its ESG data gathering process: questionnaires are sent to the ESG manager of the fund and to be completed. The data is then processed by the relevant investment team at the Fund.
Data quality: All data will be reviewed by the ESG responsible person in Korion. In case insufficient data quality is spotted, Korion engages with the underlying fund to iterate the data until it is correct and undertakes an internal validation.
Data processing: The data obtained from funds is processed by Korion’s ESG responsible person. The data is collected in an excel format.
Data estimation: The Fund relies on real data and estimations may be used only where there is a lack of available data. Estimations are always clearly indicated to avoid misrepresentation. Data that is not available is also clearly indicated.
i. Limitations to methodologies and data
Limitations to the methodologies and data referred to in the above sections include, but are not limited to:
  • limited capacity to measure or report from the underlying funds,
  • different reporting periods,
  • human error in the provision of data,
  • data collection done by email and excel, which could lead to human error
Korion expects to improve data quality and minimize the limitations mentioned above as the data process improves.
j. Due Diligence
The due diligence is carried out internally and is based on a series of questionnaires that the potential fund has to respond to. Korion will register whether the fund in which it is going to invest in contributes positively to the achievement of the selected SDGs (SDG targets 3.4 and 9.5). The due diligence questionnaire follows the ILPA format www.ilpa.org) as well as UN guidance related to SDGs and includes, at least, the following aspects:
  • Compliance with Korion’s exclusions list
  • Adherence to international standards, such as UN PRI
  • Lack of domicile in tax havens
  • Existence of ESG policy, governance in this area and supervisory bodies
  • Pre-investment ESG requisites
  • Post-investment ESG requisites
  • Transparency
  • Contribution to SDG 3, target 3.4
  • Contribution to SDG 9, target 9.5
k. Engagement Policies
Korion seeks to engage with underlying funds’ as part of its investment strategy, related to the integration of ESG factors in their investment process. Korion will seek to encourage the underlying funds to comply with minimum requirements aligned with ILPA’s standards.
l. Designated reference benchmark
No reference benchmark has been designated for the purpose of attaining the environmental and social characteristics promoted by KORION LIFE SCIENCES, F.C.R.

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