The majority of the non sovereign exposure of the portfolios is to quasi-sovereign companies. As a result, the main consideration in the analysis will be the level of sovereign support that those companies are likely to receive from the government in the event of credit distress. Hence, they are to a large extent and extension of the sovereign process.
The portfolio management team will take into account ESG factors when analyzing the individual companies that it considers as candidates for investment. Factors usually considered are corporate governance (e.g. risk management, director independence and expertise, transparency / accountability), social factors (eg employee relations/ strike actions, product responsibility). Depending on the sector of activity, environmental issues may also be considered.