We consider ESG issues to the extent that they can materially affect the value of our investments, thus helping us deliver better risk-adjusted returns to our customers.
The Brazilian stock market is very concentrated in a few sectors, thus making it difficult for a large player such as Itaú Asset Management to devise thematic strategies or screening across the entire portfolio. Therefore, we have chosen to apply screening+integration only to an specific product and use Integration alone for the remaining strategies. Our Integration approach fits better with our investment philosophy, which prioritises fundamental approaches with a strong focus on internal research. By integrating ESG into the equity research process, our analysts may give customized recommendations to our PMs, taking into consideration specificities of each strategy (long-only, long-short, benchmark used, etc).