Grünfin is responsible for conducting a suitability and appropriateness assessment before we can onboard you as our client. This is important because it helps us to look after your interests in the short and long term.

We are asking you these questions in order to collect information about your knowledge and experience regarding investing in general and regarding different types of securities, as well as your financial situation, including your ability to bear losses, your risk tolerance and your investment objectives and sustainability preferences.

We use model portfolio profiles which are all sustainability oriented but have different focus themes (Climate Change / Gender Equality / Health / S&P 500 Planet Friendly) and different risk levels (Conservative / Balanced / Progressive / Ambitious). You can pick one or combine several focus themes (Climate Change or Gender Equality or Health or S&P 500 Planet Friendly) whereas in such case your portfolio will consider each selected theme in your portfolio with the same proportion. Yet, we cannot consider individualised and detailed preferences, such as some specific principal adverse impact (PAI) considerations that you might request because we use model portfolio profiles.

Based on your answers we select you a portfolio profile with suitable risk level and your chosen sustainability focus. After finishing with your answers and before you start investing, we will present you your portfolio profile and a detailed overview of the initial selection of instruments to be invested in. This allows you to consider the portfolio and if needed, reconsider your preferences.

You can read more of our investment philosophy and investment principles (incl. how your portfolio is composed and instrument selected) here.

We kindly ask you to fill in the questionnaire entirely and accurately according to your best knowledge. Without answers to all questions, we cannot onboard you as a client.

Do not worry if you do not have previous experience in investing or you do not know how to answer. Even your answer “I do not know” is valuable to us.

Our aim is to act in your best interests and in case your answers indicate that you have minimum or no experience or knowledge regarding investing, but you are still interested in investing, our algorithm will recommend you a portfolio profile with minimum risk.

We will repeat the suitability and appropriateness assessment at least after every five (5) years in order to continuously offer you the best suitable portfolio management. Nevertheless, we may repeat the assessment or propose changes in your portfolio profile or its content more frequently if we think it is in your best interests.

Please note that your portfolio profile will be set up by an algorithm and your portfolio profile is directly related to and results solely from the answers you have provided to us.

We use model portfolio profiles, and our algorithm will offer you the most suitable model portfolio profile based on your answers.

All portfolio managers including us need to understand their customers’ “sustainability

preferences” in order to provide suitable service. This means that we need to understand and determine how much of a particular customer’s investments should be invested sustainably or in environmentally sustainable way and determine principle adverse impact considerations of their investments.

In this context a “sustainable” means ESG (Environmental, Social and Corporate

Governance). For investments it means that in addition to looking for best financial return possibilities, an additional investigation is done to understand the impact of the investment on the planet and on people/society. It includes environmental categories, such as carbon footprint, waste, water use, but also people and society related categories, such as human rights, employees’ health and safety, shareholder rights, anti-corruption etc.

On the other hand, “environmentally sustainable” means specifically that such investments need to meet the criteria set in Green Taxonomy – the regulation EU has established to meet Green Deal goals. They focus on the 6 main objectives being environmental: climate change mitigation and adaptation, protection of water and marine resources, circular economy pollution prevention and protection of biodiversity, meaning such investments have the planet and environment in mind.

And, the term “principle adverse impact” or “PAI” relates to the fact that every economic activity has the potential to impact one or more sustainability factors (positively or negatively). Principal adverse impact is generally understood to mean the negative impact. The PAI indicators are used to monitor how particular economic activity (on a company or group of companies’ level) negatively impact sustainability factors. Financial institutions should make available the information on the negative impacts that investments may have and based on this information customers could potentially set their goals for their portfolios (read about Grünfin product and limitations down below and additionally, in our FAQ, blog and our sustainability principles.

Our service is meant for customers who care for the planet and wish their investment

portfolios to be fully sustainability oriented with focus to Climate Change and/or Gender Equality and/or Health and/or S&P 500 Planet Friendly.

Yet, we use model portfolios. This means that we cannot consider individualised and detailed preferences, such as some detailed principal adverse impact (PAI) considerations that you might request. Our investment team shall manage your portfolio based on your chosen sustainability focus and applying our general investment philosophy and investment principles.

There is no direct human interaction from our side in the process of setting up your portfolio profile. As a result of your answers given, our automatic algorithm shall compose your investment portfolio profile. Nevertheless, the algorithm itself is created by people.

As the product is fully automated investing portfolio management we can offer the same service at a fraction of the cost. We have an investment team that has prepared a portfolio algorithm, which screens worldwide the best sustainability oriented investing funds and ranks them based on clear and transparent criteria (see How is my portfolio managed and instruments picked). We select funds and prove funds quarterly. Also, humans have developed the algorithm and monitor it closely.

You can always write to us to the e-mail address provided under the section “contacts” on our webpage however please note that we are not providing personalized investment advice, nor can we process any of your securities sales or purchase orders. Our service is rendered based on the algorithm and is rendered to all customers in the same way (of course taking into account different portfolio profiles).

We manage your portfolio independently. This means that when selecting instruments to fit your portfolio profile our investment team is analyzing different instruments independently without any preference of any particular fund or asset manager but will always follow our investment philosophy and investment principles of which you can read more here.

When you finish answering the onboarding questions, we will present you your portfolio profile and a detailed overview of the initial selection of instruments to be invested in. However, our service includes us constantly monitoring and screening available funds and at times we might decide adding, excluding or replacing certain funds to be invested in. Our philosophy is to refrain from managing portfolios over actively, meaning that we avoid making changes to portfolios too often. Too many changes too often are usually costly and might not make a positive effect in the long run. Usually, we will not initiate portfolio instrument or allocation ranges changes more often than once a year. As a rule, when your portfolio profile instruments or allocation ranges change (incl. if you change your ESG focus or risk preference or we make changes in instruments) then we will apply the changed new profile rules prospectively to the future purchases and the already acquired portfolio

composition will remain as is until we decide it to be necessary in your interest to sell and replace some of your previously acquired portfolio assets as well.

Our detailed Terms and Conditions can be found here.

All our portfolios are sustainability oriented as per the definitions of the Sustainable Finance Disclosure Regulation (SFDR) because either they have sustainable investing as their objective (Article 9) or they promote environmental or social characteristics even if they don’t have sustainable investing as a core objective (Article 8); and we are always guided by our investment philosophy and investment principles, but we allow you to choose the focus of your portfolio. We offer four focus portfolios (sustainability themes): Climate Change, Gender Equality, Health and S&P500 Planet Friendly.
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🍃 Climate Change

In this portfolio we aspire to ETFs investing in shares/stocks aligned with the Paris Agreement, an international treaty adopted by 196 countries whose main goal is for the world to reach net zero greenhouse gas emissions by 2050 to limit global warming. Our bond ETF can also invest in bonds issued to fund projects with direct environmental benefits. This portfolio can consist of both Article 9 and 8 funds, with a preference for Article 9 funds provided such funds rank high also based on and in combination with our other investment principles. The main criteria monitored are the SFDR, MSCI and Morningstar sustainability rankings. We include over 20 other factors. Some are Principal Adverse Impact (PAI) criteria like carbon footprint, board gender diversity, exposure to controversial weapons and violations of UN Global Compact principles. Other factors considered are independence of board, cost of ETFs, dividend distribution status, underlying leverage risk of the ETF, among

others.

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🍃 Gender Equality

In this portfolio we invest in ETFs that invest in shares/stocks of companies ranking highly on Equileap or similar provider’s criteria, scoring positively for women in promotions, management, corporate boards, overall workforce, equal pay, parental leave, flexible working hours, sexual harassment, human rights, safety, training opportunities, etc. Our bond ETFs invest in issuers ranking highly in sustainability and social responsibility. This portfolio can consist of both Article 9 and 8 funds, with a preference for Article 9 funds provided such funds rank high also based on and in combination with our other investment principles. The main criteria monitored are the SFDR, MSCI and Morningstar sustainability rankings. We include over 20 other factors. Some are Principal Adverse Impact (PAI) criteria like carbon footprint, board gender diversity, exposure to controversial weapons and violations of UN Global Compact principles. Other factors considered are independence of board, cost of ETFs, dividend distribution status, underlying leverage risk of the ETF, among

others.

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🍃 Health

Our Health share/stock ETF focuses on companies pushing the boundaries in medical

treatment and technology. These companies are working on innovative cures for cancer, migraines, epilepsy, Alzheimer's, among many other diseases. It also includes a stock ETF focused on companies aligned with the Paris Climate Agreement goals. The bond ETF invests in issuers ranking highly in sustainability and social responsibility. This portfolio can consist of both Article 9 and 8 funds, with a preference for Article 9 funds provided such funds rank high also based on and in combination with our other investment principles. The main criteria monitored are the SFDR, MSCI and Morningstar sustainability rankings. We include over 20 other factors. Some are Principal Adverse Impact (PAI) criteria like carbon footprint, board gender diversity, exposure to controversial weapons and violations of UN Global Compact principles. Other factors considered are independence of board, cost of ETFs, dividend distribution status, underlying leverage risk of the ETF, among others.
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🍃 S&P 500 Planet Friendly
In this portfolio we aspire to stock ETFs investing in the S&P 500 companies most aligned to a greener future. For example, those committed to the Paris Agreement goal of net zero greenhouse gas emissions by 2050 to limit global warming. You'll be invested in stocks of US giants in sectors like tech, financials, consumer goods, healthcare, etc. For bonds, the ETF can invest in those issued to fund projects with direct environmental benefits and/or aligned with the Paris Agreement. Bond ETFs can invest in multiple geographies including Europe and the US. Monitored criteria for this portfolio are the SFDR, MSCI and Morningstar sustainability rankings and over 20 other factors like carbon footprint, board gender diversity, exposure to controversial weapons, violations of UN Global Compact principles, independence of board, cost of ETFs, dividend distribution status, underlying leverage risk of the ETF, among others.

Read more in our blog and FAQ.

Yes, you can!

All our portfolios are fully sustainability oriented but can have different ESG focus. We offer four sustainability themes: Climate Change, Gender Equality, Health and S&P 500 Planet Friendly. You decide which of these themes interests you the most and you can choose 1, 2, 3 or 4 themes into your portfolio.

If you choose only one theme then your portfolio will focus fully to that theme, if you choose two themes then your portfolio will be split 50/50 between your chosen themes and if three interest you then you will have 1/3 of each theme oriented funds, etc.

Your portfolio profile will be introduced to you after you have completed answering the Questionnaire.

Our investment service is aimed at and designed for retail customers (i.e. not professional investors). As a principle, we do not differentiate retail customers from professional customers. We apply portfolio profiles based on customers answers only and we consider all of our customers to be retail customers. That does not mean that skilled investors are not welcome. For skilled and professional investors our product can be an additional “not much active attention needed portfolio” part of their overall investment portfolio.

Our investment service is aimed at and designed for retail customers (i.e. not professional investors). As a principle, we do not differentiate retail customers from professional customers. We apply the portfolio profiles based on customers answers only and we consider all of our customers to be retail customers. That does not mean that skilled investors are not welcome. For skilled and professional investors our product can be an additional “not much active attention needed portfolio” part of their overall investment portfolio.

There is no such thing as guaranteed success when investing. No advisor or portfolio manager who acts fairly and honestly can guarantee definite success.

Please note that with every investment comes a certain risk. There is no such thing as risk-free investing. Please read more under “What are the risks related to my portfolio?”

The risk-return ratio is a measure of return in terms of risk for a specific time period. The risk is the total amount that could be lost, and returns is the total potential profit gained over that period. Risk is as important a consideration as return in portfolio selection. Risk is usually not as well understood by the average investor as expected returns because an individual’s risk tolerance is driven not only by past performance and rational expectations but also by unique personal circumstances and other emotional factors such as hopes and fears. If you are not sure about your investor profile and attitude to risk then it's wise to select more conservative portfolios.

Read more:

👉 What are the risks related to my portfolio?

👉 Is my portfolio's performance affected by my risk level?
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