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Sparinvest S.A.

PRI reporting framework 2017

Export Public Responses

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » (A) Implementation: Screening

(A) Implementation: Screening

FI 07. Types of screening applied

07.1. Indicate the type of screening you conduct.

Select all that apply
Corporate (financial)
Corporate (non-financial)
Negative/exclusionary screening
Positive/best-in-class screening
Norms-based screening

07.2. Describe your approach to screening for internally managed active fixed income

Across all funds, we exclude companies involved in banned weapons and securities in breach of EU sanctions for legal reasons. (We note that on occasion, certain sanctions may have the effect of excluding specific countries).

All funds are screened to ensure that they do not invest in companies manufacturing weapons of mass destruction (biological weapons, chemical weapons or nuclear weapons outside the nuclear non-proliferation treaty.) The screen also excludes manufacturers of weapons banned under international conventions such as the Oslo and Ottawa conventions - which prohibit the use and dissemination of cluster munitions and anti-personnel mines. The basis for such exclusions is a banned weapons analysis performed and updated on a daily basis by our screening services provider. We have zero tolerance of companies assessed as being manufacturers of such weapons and these are noted in an exclusion list used for pre-trade compliance checks, and daily screenings of the portfolios. Portfolio managers are notified of any relevant changes to the exclusion status. Any breaches will result in the security being divested as soon as reasonably practicable.

For our ethical strategies we apply further ESG-related screenings through international norms and banned sector screenings (see section on ESG-based negative screening).

07.3. Additional information. [Optional]

FI 08. Negative screening - overview and rationale

08.1. Indicate why you conduct negative screening.



Corporate (financial)

Corporate (fin)

Corporate (non-financial)

Corporate (non-fin)



08.2. Describe your approach to ESG-based negative screening of issuers from your investable universe.

Our ESG-based negative screening consists of a further screening for our ethical strategies in addition to those legally required and detailed in FI 07.2.

Where we provide funds with an additional focus on ethical overlay, this is based on negative screening to exclude companies from the investment universe or investment shortlist, on certain specific grounds. The exclusionary criteria for these funds result from ongoing consultation with clients, but are broadly categorized as norm-based and sector-based criteria:

  • A norm-based screen for violations of global norms: environmental protection, human rights, labor standards and anti-corruption.
  • A sector-based screen for companies operating within sectors such as: alcohol, tobacco, gambling, pornography, weapons, thermal coal and oil sands.

Note that our Norm-Based screening is a negative exclusionary screen. It assesses companies' adherence to international norms for human rights, the environment, labor standards and anti-corruption. It adheres to the UN Global Compact Principles.

08.3. Additional information. [Optional]

We comply with legal requirements for exclusions but we also comply with our clients' wishes, particularly with regard to ethical strategies.

FI 09. Examples of ESG factors in screening process (Private)

FI 10. Screening - ensuring criteria are met

10.1. Indicate which systems your organisation has to ensure that fund screening criteria are not breached in fixed income investments.

Type of screening
Negative/exclusionary screening?

other description

          Data used for the overarching screening criteria is updated on an on-going basis to capture new exclusions as they arise.
Norms-based screening

other description

          Data used for the screening criteria is updated with ad-hoc alerts from the service provider if there is a norms issue.

10.2. Additional information. [Optional]

Sector-based screening checks are performed to ensure that issuers meet screening criteria on a semi-annual basis. Automated IT systems prevent our portfolio managers from investing in excluded issuers or bonds that do not meet the sector screening criteria. Audits of fund holdings are undertaken regularly by internal audit or compliance functions.