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Fiera Capital Corporation

PRI reporting framework 2017

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ESG incorporation in actively managed fixed income

Implementation processes

FI 04. Incorporation strategies applied

04.1. Indicate 1) Which ESG incorporation strategy and/or combination of strategies you apply to your actively managed fixed income investments; and 2) The proportion (+/- 5%) of your total actively managed fixed income investments each strategy applies to.

SSA
0 Screening alone
0 Thematic alone
98 Integration alone
2 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (financial)
0 Screening alone
0 Thematic alone
98 Integration alone
2 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (non-financial)
0 Screening alone
0 Thematic alone
99 Integration alone
1 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%

04.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

Screening

A number of Fiera's clients require that companies deemed unethical be screened out from their portfolios. A company will be deemed ineligible if it derives more than 10% of its revenue, either directly or indirectly, from a list of products or services.

Screening + Integration Strategies

The screening restricts the investable universe to companies not deriving revenue from unethical products or services. The integration strategies try to identify ESG issues, and to the extent that any of these are viewed negatively by our portfolio managers, a risk premium is required rendering a potential investment less appealing from an investment standpoint. The combination of both screening and integration strategies allows for the mitigation of non-financial risks.

Integration Only

Since January 1st, 2016, All of Fiera's Pooled Funds are integrating ESG factors into the fundamental investment decision-making process of the Fund. Fiera Capital is of the view that well-managed companies are generally those that demonstrate high ethical and environmental standards and respect for their employees, for human rights and for the communities in which they do business. These factors are taken into consideration in our fundamental analysis of the investments, as per each investment team's investment process

04.3. Additional information [Optional].


FI 05. ESG issues and issuer research (Private)


FI 06. Processes to ensure analysis is robust

06.1. Indicate how you ensure that your ESG research process is robust:

06.2. Describe how your ESG information or analysis is shared among your investment team.

06.3. Additional information. [Optional]


(A) Implementation: Screening

FI 07. Types of screening applied

07.1. Indicate the type of screening you conduct.

Select all that apply
SSA
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

For certain strategies, we exlude from the investable universe any companies with >10% or revenues derived from non ethical activities such as;

  • Adult Entertainment
  • Alcohol
  • Firearms
  • Gambling
  • Military Contracting
  • Nuclear Power
  • Tobacco

07.3. Additional information. [Optional]


FI 08. Negative screening - overview and rationale

08.1. Indicate why you conduct negative screening.

SSA

SSA

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.

For certain strategies, we exlude from the investable universe any companies with >10% or revenues derived from non ethical activities such as;

Adult Entertainment
Alcohol
Firearms
Gambling
Military Contracting
Nuclear Power
Tobacco

08.3. Additional information. [Optional]


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
Checks
Negative/exclusionary screening?

10.2. Additional information. [Optional]


(C) Implementation: Integration

FI 14. Integration overview

14.1. Describe your approach to integrating ESG into traditional financial analysis.

ESG data is integrated to identify weaknesses and risks to which companies are exposed to, especially risks related to Environmental, Social and Governance issues. ESG data helps understand how companies are mitigating those sources of risk – either via policies or actions.

Depending on the bond type, different factors/risk exposures may be weighted more heavily.

14.2. Describe how your ESG integration approach is adapted to each of the different types of fixed income you invest in.

SSA

ESG data is integrated to identify weaknesses and risks to which companies are exposed to, especially risks related to Environmental, Social and Governance issues. ESG data helps understand how companies are mitigating those sources of risk – either via policies or actions.

Governance weighted more heavily

Corporate (financial)

ESG data is integrated to identify weaknesses and risks to which companies are exposed to, especially risks related to Environmental, Social and Governance issues. ESG data helps understand how companies are mitigating those sources of risk – either via policies or actions.

Governance weighted more heavily

Corporate (non-financial)

ESG data is integrated to identify weaknesses and risks to which companies are exposed to, especially risks related to Environmental, Social and Governance issues. ESG data helps understand how companies are mitigating those sources of risk – either via policies or actions.

Environmental, Social and Governance all weighted heavily

14.3. Additional information [OPTIONAL]


FI 15. Integration - ESG information in investment processes

15.1. Indicate how ESG information is typically used as part of your investment process.

Select all that apply
SSA
Corporate (financial)
Corporate (non-financial)
ESG analysis is integrated into fundamental analysis
ESG analysis is integrated into security weighting decisions
ESG analysis is integrated into portfolio construction decisions
ESG analysis is a standard part of internal credit ratings or assessment
ESG analysis for issuers is a standard agenda item at investment committee meetings
ESG analysis is regularly featured in internal research notes or similar
ESG analysis is a standard feature of ongoing portfolio monitoring
ESG analysis features in all internal issuer summaries or similar documents
Other, specify

15.2. Additional information [OPTIONAL]


FI 16. Integration - E,S and G issues reviewed

16.1. Indicate the extent to which ESG issues are reviewed in your integration process.

Environment
Social
Governance
SSA

Environmental

Social

Governance

Corporate (financial)

Environmental

Social

Governance

Corporate (non-financial)

Environmental

Social

Governance

16.2. Please provide more detail on how you review E, S and G factors in your integration process.

SSA

ESG data is integrated to identify weaknesses and risks to which companies are exposed to, especially risks related to Environmental, Social and Governance issues. ESG data helps understand how companies are mitigating those sources of risk – either via policies or actions.

Depending on the bond type, different factors/risk exposures may be weighted more heavily.

ESG data are provided from multiples sources such as:

  • MSCI ESG Research
  • Sell-side research

Corporate (financial)

ESG data is integrated to identify weaknesses and risks to which companies are exposed to, especially risks related to Environmental, Social and Governance issues. ESG data helps understand how companies are mitigating those sources of risk – either via policies or actions.

Depending on the bond type, different factors/risk exposures may be weighted more heavily.

ESG data are provided from multiples sources such as:

  • MSCI ESG Research
  • Sell-side research
  • Risk Factors identified in prospectus and financial statements

Corporate (non-financial)

ESG data is integrated to identify weaknesses and risks to which companies are exposed to, especially risks related to Environmental, Social and Governance issues. ESG data helps understand how companies are mitigating those sources of risk – either via policies or actions.

Depending on the bond type, different factors/risk exposures may be weighted more heavily.

ESG data are provided from multiples sources such as:

  • MSCI ESG Research
  • Sell-side research
  • Risk Factors identified in prospectus and financial statements

16.3. Additional information.[OPTIONAL]


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