Starting in 2024, Ellipsis AM has chosen to rely on the Clarity AI data platform to calculate quantitative data on key indicators for assessing negative impacts on sustainability across the ESG spectrum, both at the individual portfolio level and in aggregate. PAI data is available upon request for all our convertible, credit & diversified funds under Article 8 SFDR (excluding mandates).

PAIs are designed to help investors identify the most significant negative impacts of their investments, enabling them to make more sustainable and responsible investment decisions. PAIs cover a range of ESG indicators such as greenhouse gas emissions, water consumption, waste management, human rights, diversity and inclusion, executive compensation, corruption, and more.

The PAI framework is based on a "double materiality" approach, meaning it considers both financial and non-financial impacts of investments.

The SFDR requires the publication of a PAI statement detailing how the principal adverse impacts of investments on sustainability factors are taken into account both at the entity level and at the fund level. Companies with fewer than 500 employees can explain why PAIs are not considered, which Ellipsis AM has outlined in its LEC report.