In investments based on our credit-picking model our philosophy is based on fundamental analysis of the issuers and bond selection. Our in-house analysis means that our portfolio managers analyse the issuers. It is logical for us to fully integrate ESG analysis into our issuer analysis and investment process. As such ESG analysis is an integrated part of the investment analysis that our portfolio managers perform. Our ESG analysis leads to a company specific score that is reviewed regularly and the distribution of scores for each mutual fund is published monthly.
ESG analysis helps us to get a full picture of various elements of risks for an issuer and brings important risk factors to the consideration of the total risk level of the issuer. We engage with the issuers via e-mail and in meetings, when we need additional information on ESG.
In SSA, our investment universe consists of euro denominated bonds, mainly issued by EU/OECD based issuers. We consider ESG aspects in our investment criteria, particularly when looking outside our main investment universe. We also discuss ESG themes with issuers when meeting them for instance during road shows.