1. FinSA Client Information
Based on the legal requirements of Art. 8ff. of the Financial Services Act (FINSA), we would like to supply you with this information sheet which provides an overview of Earth Resource Investments Ltd (hereinafter referred to as the «financial institution») and its services.
A. Company information
Address
Street: Dorfstrasse 1
Zip Code/City: 6300 Zug
Phone: +41 (0) 41 729 88 48
Email: info@earth-investment.com
Website: earth-investment.com
The financial institution was established in 2006.
Supervisory authority and audit firm
License under Art. 24 FinIA:
The financial institution has been licensed as a manager of collective assets in accordance with the Swiss Financial Market Supervision Act (FinIA) since 2024 and is therefore subject to prudential supervision by the Swiss Financial Market Supervisory Authority FINMA. As part of this supervision, the financial institution is audited by the Audit Firm both in terms of regulatory law and obligations. The address of FINMA and Grant Thornton can be found below.
Audit Firm Name: Grant Thornton Ltd
Address: Claridenstrasse 35
Zip Code / City: 8002 Zurich
Phone: +41 (0) 43 960 71 71
Email: info@ch.gut.com
Website: www.grantthornton.ch
Ombudsman
The financial institution is affiliated with the independent ombudsman office Verein Ombudsstelle Finanzdienstleister (OFD), which is recognized by the Federal Department of Finance. Disputes concerning legal claims between the client and the financial services provider should be settled by an ombudsman’s office, if possible, within the framework of a mediation procedure. The address of Verein Ombudsstelle Finanzdienstleister (OFD) is stated below.
Name Ombudsman: Verein Ombudsstelle Finanzdienstleister
Address: Bleicherweg 10
Zip Code / City: 8002 Zurich
Phone: +41 (0) 44 562 05 25
Email: ombudsmann@ofdl.ch
Website: www.ofdl.ch
B. Information on the offered financial services
The financial institution provides financial services in collective investment schemes. For further information on the various collective investment schemes, the general risks, specifications, and operating procedures, please refer to the relevant prospectuses and factsheets on this website.
The financial institution does not guarantee any yield nor performance of investment activities. The investment activity can therefore lead to an appreciation or a depreciation in value.
The financial institution has all the necessary licences to perform the services described above.
C. Client segmentation
Financial service providers are required to classify their clients into a client segmentation according to the law and adhere to the respective code-of-conduct. The Financial Services Act provides for «retail clients», «professional clients» and «institutional clients» segments. For each client, a client classification is determined within the framework of the cooperation with the financial institution. Subject to certain conditions, the client may change the client classification by opting out.
D. Information on risks and costs
General risks associated with financial instruments transactions
The asset management services involve financial risks. The financial institution shall provide all clients with the «Risks associated with Financial Instruments Transactions» brochure prior to the execution of the contract. This brochure can also be found at www.swissbanking.org.
Risks associated with the offered services
For a description of the various risks that may arise from the investment strategy for clients’ assets, please refer to the relevant agreements.
Information on costs
A fee is charged for the services rendered, which is usually calculated on the assets under management and/or on a performance basis. For more detailed information, please refer to the relevant investment fund documents.
E. Information about relationships with third parties
In connection with the financial services offered by the financial institution, economic ties may exist with third parties. The acceptance of payments from third parties as well as their treatment are regulated in detail and comprehensively.
F. Information on the market offer considered
The financial institution basically follows an «open universe approach» and tries to make the best possible choice for the client when selecting financial instruments.
2. Sustainability-related disclosures for Earth Resource Investments AG
(Published 29 July 2024)
Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (“Disclosure Regulation“) requires financial market participants to disclose certain sustainability-related information.
Universal-Investment-Gesellschaft mbH (“Universal-Investment“), a financial market participant within the meaning of the Disclosure Regulation, has appointed Earth Resource Investments AG (“ERI”) as its agent with respect to portfolio management services for certain funds. Under this outsourcing agreement, ERI is required to implement certain processes and procedures to take into account and disclose the management of sustainability factors, including sustainability risks.
Sustainability Risk Statement: Integration of sustainability risks into the investment process (Article 3(1) of the Disclosure Regulation)
According to Article 3(1) of the Disclosure Regulation, financial market participants are obliged to publish information on their websites about their strategies for integrating sustainability risks into their investment decision-making process.
A sustainability risk is defined in Article 2(22) of the Disclosure Regulation as “an environmental, social or governance event or condition, the occurrence of which could have an actual or potential material adverse impact on the value of the investment“.
Sustainability risks are therefore part of ERI’s investment decision-making process and are assessed on an ongoing basis.
Sustainability risks can therefore lead to a significant deterioration in the financial profile, liquidity, profitability or reputation of the underlying investment. If sustainability risks are not already taken into account in the valuation process of the respective investment, this can have a material negative impact on the expected/estimated market price and/or liquidity of the investment and thus on the return of the fund. Sustainability risks can have a significant impact on all known types of risk and contribute as a factor to the materiality of these types of risk.
As part of the selection of assets for the fund, the influence of risk indicators, including sustainability risks, is assessed in addition to the objectives and investment strategies.
The assessment of risk quantification includes aspects of sustainability risks and relates them to other factors (esp. price and expected return).
Consideration of the main adverse impacts on sustainability factors (Article 4(1) of the Disclosure Regulation)
Article 4 (1) of the Disclosure Regulation obliges financial market participants to publish and keep up to date information on their websites on the manner in which and how the principal adverse effects of investment decisions on sustainability factors (Principal Adverse Impact; “PAIs“, and each one a “PAI”) may or may not be taken into account. PAIs are potential negative impacts of investment decisions on sustainability factors. The sustainability factors are environmental, social and employee concerns, respect for human rights, and the fight against corruption and bribery. In line with Article 4(1)(b) of the Disclosure Regulation, financial market participants are also required to provide clear reasons why PAIs are not taken into account at entity level and, where appropriate, to include information on whether and when they intend to take such adverse impacts into account.
ERI does not currently consider company-level PAIs for the following reasons:
Due to the current size of the company, the nature and scale of its activities, and the type of financial products offered, not all of which have an ESG focus, ERI has chosen not to include PAIs at the company level at this time.
Notwithstanding the above reasons why PAIs are not currently considered at the company level, ERI will periodically reassess this position in light of market developments.
Nonetheless, the principal adverse effects of investment decisions are considered in the context of the portfolio management services provided by ERI to the Earth Sustainable Resources Fund, a Germany-based UCITS fund managed by Universal-Investment (the “Fund“). Further information on this can be found in the fund prospectus and in the pre-contractual disclosures pursuant to Article 8 of the Disclosure Regulation.
Summary of the remuneration policy (Article 5 of the Disclosure Regulation)
Article 5 of the Disclosure Regulation requires financial market participants to indicate the extent to which they are consistent with the inclusion of sustainability risks in their remuneration policy and to publish this information on their websites.
ERI is registered and supervised as a manager of collective assets with the Swiss Financial Market Supervisory Authority (“FINMA”) in Switzerland. ERI is therefore not obliged to establish a remuneration policy within the meaning of Article 5 of the SFDR. A summary of Universal-Investment’s remuneration policy can be found under the following link: https://www.universal-investment.com/-/media/Compliance/PDF/UID-German/Verguetungssystem_UID_DE_02-2022.pdf
