Sustainability-related disclosures

This document fulfills the disclosure requirements under 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 ("SFDR") for ETGAR PORTFOLIO MANAGEMENT OF MIZRAHI TEFAHOT BANK LTD. (Company number 510874266) ("Etgar" or "the Company").

In accordance with Article 6 of the SRDF, financial market participants are required to publish information on their approach to integrating sustainability risks into their investment processes or advisory activities.

As of the date of this disclosure, Etgar does not have a sustainable investment objective nor does it promotes environmental or social characteristics. Consequently, Etgar at this stage does not integrate environmental, social, and governance (ESG) sustainability risks into its investment decisions. Sustainability risks are defined as environmental, social, or governance events or conditions that Etgar considers could have a principal adverse impact on the value of one or more investments in accordance with the SFDR.

Currently, sustainability risks are deemed not to have a material impact on the returns of our financial products and are not taken into account in the investment decision-making process because they are not deemed relevant for the time being. This is due to the characteristics of our investment policy and restrictions, and the expected composition of our investment portfolio.

Additionally, as of the date of this disclosure, Etgar does not consider the adverse impacts of our investment decisions on ESG factors, due also to the lack of consistent and accurate data to adequately assess such principal adverse impacts on our target investments. As a result, sustainability risks are currently deemed not to have a material impact on the returns of our financial products.

The investments underlying our financial products do not take into account the EU criteria for environmentally sustainable economic activities.

Etgar is in the process of setting up an ESG policy to be implemented in our investment decision-making process, and this disclosure will be amended accordingly. Such policy will outline how we intend to integrate sustainability risks into our investment decisions. While ESG considerations will not be the sole factor in our investment decisions, they will be evaluated alongside other financial and operational criteria.

For further information or inquiries regarding this disclosure, please contact: Mr Yon erchi, compliance and enforcement officer by the contact details listed below.

Etgar, an investment portfolio management company from the Mizrahi Tefahot Group Ltd Abba Hillel Silver 13, Lod 7129463 | Tel number: +972-5558837 | E-mail: yon.erchi@umtb.co.il