This report shows public data only. Is this your organisation? If so, login here to view your full report.

Wells Fargo Asset Management

PRI reporting framework 2018

Export Public Responses
Pdf-img

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities

ESG incorporation in actively managed listed equities

Implementation processes

LEI 01. Percentage of each incorporation strategy

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

01.1. 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
100 %
Total actively managed listed equities 200%

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

WellsCap integrates ESG research into our investment process as philosophically, we believe it contributes to our ability to manage risk more holistically and generate sustainable, long-term returns for our clients. WellsCap views ESG criteria as an important set of factors among many that should be evaluated and incorporated by our investment teams to inform investment decisions. We believe that ESG issues can have an impact on investment performance and have financial consequences; likewise, we believe that a better understanding of ESG risk factors can help protect against downside risk and contribute to long term risk-adjusted returns.

We are able to incorporate client ESG screening requests provided that they do not substantially impact the  ability to effectively deliver expected investment outcomes to the client. As such, each independent investment team carefully review clients' guidelines to ensure that they can invest within their style, given the clients' restrictions.

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


LEI 02. Type of ESG information used in investment decision (Private)


LEI 03. Information from engagement and/or voting used in investment decision-making (Private)


(A) Implementation: Screening

LEI 04. Types of screening applied

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

Type of screening

Screened by

Description

Negative screening is incorporated by client request and is desinged to align with specific client needs.

04.2. 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.

We are able to incorporate most client screening requests, provided that they do not substantially impact the independent investment team's ability to effectively deliver its strategy to the client. We carefully review clients' guidelines to ensure that we can invest within the investment style, given the clients' restrictions.


LEI 05. Processes to ensure screening is based on robust analysis

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

05.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your ESG screening strategy.

05.3. Indicate how frequently third party ESG ratings are updated for screening purposes.

05.5. Additional information. [Optional]

Our compliance team utilizes MSCI Business Involvement Screening Research for ESG screening activities. This data is reviewed by the vendor to incorporate corporate actions on a monthly basis (to account for activities such as acquisitions, consolidations, mergers, name changes, public offerings, spinoffs, and splits).


LEI 06. Processes to ensure fund criteria are not breached (Private)


(C) Implementation: Integration of ESG issues

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate which ESG factors you systematically research as part of your investment analysis and the proportion of actively managed listed equity portfolios that is impacted by this analysis.

ESG issues

Proportion impacted by analysis
Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]

WellsCap integrates ESG research into our investment process as philosophically, we believe it contributes to our ability to manage risk more holistically and generate sustainable, long-term returns for our clients.

WellsCap views ESG criteria as an important set of factors among many that should be evaluated and incorporated by our investment teams to inform investment decision making. We believe that ESG issues can have an impact on investment performance and have financial consequences; likewise, we believe that a better understanding of ESG risk factors can help protect against downside risk and contribute to long term risk-adjusted returns. As such, WellsCap integrates material ESG considerations across our universe of investment strategies and as part of our independent investment team’s overall approach to investing.


LEI 09. Processes to ensure integration is based on robust analysis (Private)


LEI 10. Aspects of analysis ESG information is integrated into (Private)


Top