In addition to adhering to the sustainability principles set out by our parent group, VIG Asset Management Hungary has developed and applies its own Responsible and Sustainable Investment Policy (hereinafter: the Policy) in its day-to-day operations.
This internal regulation ensures compliance with Article 3(1) of the European Parliament and Council Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector.
The Policy defines the core principles of responsible and sustainable investment that guide the company’s asset management practices. Its preamble declares our full commitment to responsible and sustainable investing.
As a significant investor across various industries and companies, we recognize our responsibility as a capital allocator. We are committed to making prudent and responsible investment decisions that manage risks appropriately and serve the best interests of our clients.
As shareholders, we aim to promote well-being and sustainable development through the investment funds and portfolios we manage. We firmly believe that integrating Environmental, Social, and Governance (ESG) considerations into investment decision-making process positively impacts long-term returns. All employees—especially those involved in investment activities—are expected to support this approach.
Our approach takes portfolio-specific characteristics into account and applies the following strategies:
Our funds classified under SFDR Article 9 has a primarily focus of sustainable investment, aiming to generate a positive environmental impact. These investments go beyond mitigating environmental harm—they seek to serve as catalysts for environmental transformation.
As a responsible market operator and a member of the VIG Group, VIG Asset Management Hungary treats the management of material risks as a priority in its decision-making process and considers the principal adverse impacts (PAIs) of its investment decisions on sustainability factors, as defined by Commission Delegated Regulation (EU) 2022/1288.
In compliance with Article 4 of Regulation (EU) 2019/2088, we publish an annual PAI statement by June 30 each year, covering the period from January 1 to December 31 of the previous year. The most recent statement is available here.
Our approach is summarized in our Responsible and Sustainable Investment Policy, which describes key adverse impacts and outlines our methods for identifying and prioritizing relevant indicators. These practices are continuously improved in line with the availability of sustainability data, which is expected to grow as EU regulations are fully implemented. However, the quality of our assessments depends largely on disclosures made by issuers.
For sustainability-focused funds, we assess and report PAIs (Principal Adverse Impact indicators), with outcomes disclosed in the respective annual fund reports.
We act in the best interests of our clients and investors when exercising shareholder rights on behalf of the funds and portfolios we manage. Our goal is to ensure that the companies in which we invest operate in alignment with our investment strategies.
We collect sustainability information from these companies and may reflect their ESG commitment in our voting decisions. We generally support management, but if our aggregated voting rights exceed 5% and we have sufficient influence, we may vote against resolutions that are not in our clients’ best interest.
We provide annual disclosures on our shareholder engagement practices. Institutional investors with portfolio management agreements receive annual written reports detailing how our strategies align with those agreements and contribute to long-term performance.
Our engagement policy and its implementation are published on our website (vigam.hu).
We believe our clients benefit most from the expertise and dedication of our employees. That’s why we’ve built a supportive work environment and incentive system that rewards high performance, fosters long-term motivation and development, and attracts new talents.
Our remuneration is competitive and includes performance-based components. We promote prudent, responsible risk-taking—including consideration of sustainability risks—by integrating long-term performance measures. For key roles, 40% of variable pay is deferred over three years and invested in internal funds to align incentives with sustainable success.
Annual bonuses may range from 45% to 100% of base salary, based on performance. Senior roles are evaluated by the CEO and reviewed by the Remuneration Committee. Other employees are evaluated by their direct supervisors and department heads, with final approval by the CEO.
Performance bonuses also consider attitude, commitment, and efficiency. Payouts are subject to bonus pool constraints based on corporate performance. A success fee system exists for both portfolio managers and other employees, based on personal or corporate overachievement.
Remuneration Policy is reviewed annually by HR with input from risk, compliance, and internal audit, and is approved by the Supervisory Board. The policy is aligned with sector regulations and VIG Group principles.