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GLG Partners LP

PRI reporting framework 2017

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ESG incorporation in actively managed listed equities

Implementation processes

LEI 03. Percentage of each incorporation strategy

New selection options have been added to this indicator. Please review your prefilled responses carefully.

03.1. Indicate (1) which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities and (2) the breakdown of your actively managed listed equities by strategy or combination of strategies (+/- 5%)

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied
60 %
Percentage of active listed equity to which the strategy is applied
5 %
Percentage of active listed equity to which the strategy is applied
35 %
Total actively managed listed equities 100%

03.2. Describe your organisation’s approach to incorporation and the reasons for choosing the particular ESG incorporation strategy/strategies.

Man Group implements a a group-wide policy, including GLG Partners, that screens out cluster munitions and anit-personnel mines under a Master List created and maintained by ISS-Ethix. Within this figure, ~35% of the firm's assets (GLG) are managed under mandates by values- and norms-based screen criteria that range from single company exclusions to sector exlcusionsn like tobacco.  

For thematic strategies, GLG manages the Virgin Climate Change Fund, an environmental strategy applying a Trustcost-optimized carbon screen for stock selection, was chosen in order to develop an innovation way to crystallize the carbon footprint of a company into a liability with implications on its valuation. Our expectation remains that as the carbon markets mature, the distortions is the market will gradually diminish.

The remaining assets (~40%) which represent a mixture of equity long only, equity long/short and fixed income strategies are managed through ESG integration. That said, these assets are subject to the firm-wide, Ethix-driven exclusion screen around controversial arms and munitions. It is important to highlight, however, that while GLG Partners provides third party data and policy support as well as encourages the promotion of RI modalities and thought leadership within the firm, we do not impose any single, uniform approach to the implementation and integration ESG integration given the diversification of investment strategiers and the varying relevance to RI approaches.

03.3. Where assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]


LEI 04. Type of ESG information used in investment decision (Private)


LEI 05. Information from engagement and/or voting used in investment decision-making (Not Completed)


(A) Implementation: Screening

LEI 06. Types of screening applied

06.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by

Description

Environmental negative screening is applied to the Virgin Climate Change Fund as part of its mandate to be 30% to 50% cleaner than the MSCI Europe index. However, the Firm uses this data to measure and assess environmental/carbon sensitivity to a number of other equity funds though this is accomplished without a specific screen.

Screened by

          Cluster Munitions and Anti-Personnel Mines exclusion list
        

Description

GLG Partners--and its parent Man Group--applies a firm-wide norms-based screen for Cluster Munitions and Anti-Personnel Mines. This master list was conceived and is maintained by ISS-Ethix, imposing ownership thresholds for all firm funds.

06.2. Describe how the screening criteria are established, how often the criteria are reviewed and how you notify clients and/or beneficiaries when changes are made.

Environmental screening for the Virgin Climate Change Fund was established by Virgin and GLG using Trucost data. The criteria is regularly reviewed to assess how it responds to changing prices in carbon and shifting EU political support for a carbon floor.  Because the fund is a retail fund with a very large retail base of clients, the Fund is obliged to notify and receive consent from investors of any/all changes.

As regards to the Firm's Cluster Munitions and Anti-Personnel Mines exclusion screen, the policy was ratified in 2012 and the Master List generated with Ethix implemented in 2013.The Master list is updated on a bi-annual basis. The Firm does not notify clients and/or beneficiaries when changes to the list are made.

 


LEI 07. Processes to ensure screening is based on robust analysis

07.1. Indicate which processes your organisation uses to ensure screening is based on robust analysis.

07.2. Additional information. [Optional]


LEI 08. Processes to ensure fund criteria are not breached (Not Completed)


(B) Implementation: Thematic

LEI 09. Types of sustainability thematic funds/mandates

09.1. Indicate the type of sustainability thematic funds or mandates your organisation manages.

09.2. Describe your organisation’s processes for sustainability themed funds. [Optional]

The process begins by defining sustainability as the investment required to address demographic, environmental and social change.  Themes and sectors (GICs) are analyzed for qualification.  The process is intentionally kept broad so that new areas--in technology for instance--can be interwoven into the existing framework.  With the universe of themes defined, work focuses on building a portfolio per its charter that is concentrated (40-50 positions) that fulfill ESG criteria, with a particularly emphasis on strong or improving governance. The firm typically proxy votes through ISS but the fund and firm will take up specific governance issues with the board and management of companies.

 

 


(C) Implementation: Integration of ESG issues

LEI 10. Review ESG issues while researching companies/sectors

10.1. Indicate if E, S and G issues are reviewed while researching companies and/or sectors in active strategies.

ESG issues

Coverage/extent of review on these issues

Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

10.2. Additional information. [Optional]

Because GLG includes a number of different funds, subfunds and strategies, there is no systematic or uniform approach to addressing ESG issues. Hence, some funds investigate these criteria consistently and rigorously while other strategies approach these issues more opportunistically.


LEI 11. Processes to ensure integration is based on robust analysis (Not Completed)


LEI 12. Aspects of analysis ESG information is integrated into (Private)


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