CORPORATE DEBT ISSUERS
Since 2014, Edmond de Rothschild Asset Management (France) has extended its SRI/ESG expertise to its credit bond management via:
the launch of its first SRI open-ended credit fund on 1 September 2015: Edmond de Rothschild Euro Sustainable Credit. This euro zone credit fund applies an SRI approach with a positive best-in-universe screening of mostly Investment Grade securities, but with a diversification pocket of High Yield securities. Its approach aims to favour the most performant firms in terms of ESG so as to offer the fund manager an additional appreciation perspective, enabling him to fine-tune his assessment and, ultimately, his level of confidence in respect of their levels of exposure to a default risk.
an ESG integration strategy: the development of this SRI fund generated concomitantly the development of an ESG integration strategy for euro zone corporate debt issuers by offering, upon request, the ESG research data on these issuers to the Credit team composed of 14 fund managers-analysts. Presently, an access to the in-house ESG research is possible on a shared file easily accessible, and on demand to the SRI Credit manager for the analysis produced by the extra-financial agency -Sustainalytics - for the rest of the credit universe not covered by our in-house ESG research team. In a second phase, the integration of ESG data related to corporate debt issuers within our in-house instruments reference data is a started in 2017 that will expand in 2018.
Furthermore, all of our investments in corporate issuers apply a negative screening approach (used systematically across all the asset management company's funds) based on a negative / exclusionary screening of companies whose business is in any way related to cluster bombs and anti-personnel mines, in accordance with the Oslo Treaty and the Ottawa Convention signed by the French Government.
SOVEREIGN DEBT ISSUERS
In addition, Edmond de Rothschild Asset Management (France) has implemented an advanced ESG integration approach for euro zone sovereign debt issuersd with its Asset Allocation and Sovereign Debt teams.
NEGATIVE SCREENING APPLIED FOR THE SOVEREIGN AND CORPORATE DEBT ISSUERS
At last, a negative screening is also applied for the sovereign and corporate debt issuers according to the main global legal constraints such as countries under embargoes, that finance terrorism, subject to financial sanctions or still are part of the money laundering blacklist. For more explanations, please refer to FI 05.3.