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. In fixed income, ESG information is sourced from both third party ESG research providers as well as by primary proprietary research. We believe vended research compliments the fundamental research conducted by our independent investment teams, serving both as a source of additional research and as a check and balance to their own research. Integration of ESG within traditional financial analysis takes place through two firm-wide platforms:
- Taxable Fixed Income ESG Centralized Research System: the proprietary GRID system stores and shares research notes gathered by the taxable fixed income centralized research team. Research analysts gather ESG data through a combination of MSCI ESG Research, Bloomberg ESG Research, company financial statements, and company engagement.
- Municipal Fixed Income ESG Centralized Research System: the municipal global credit research team relies exclusively on primary ESG research and engagement. Information is stored in a shared location with municipal investment teams.
Additionally, an ESG Alerts System is in place to provide ESG-related news items that may have a large impact on specific issuers or industries, and is disseminated to investment teams by the Portfolio Risk Management and Analytics (PRMA) team via email.