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

Munich Re

PRI reporting framework 2018

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

(A) Implementation: Screening

FI 04. Types of screening applied

04.1. Indicate the type of screening you conduct.

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

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

Strict ban on buying bonds of companies that are on an internal "banned weapons" list. The exclusion criteria include companies that are suspected to deal with banned weapons or generate more than 5% of revenues with the production, trading or transport of banned weapons. The policy is applied to all investment funds.

Screening of sovereigns through MSCI rating: countries classified as "CCC" have to be avoided and pop up on an internal prohibition list. If a country is downgraded to "CCC" internal limits are set back to zero. This process is incorporated into MEAG front office systems, where a "pre-order limit check" runs before each transaction.

04.3. Additional information. [Optional]

In general, Fixed Income uses an ESG integration approach, meaning that credit analysts and portfolio managers incorporate ESG-criteria into the investment decision. In the case two investments have the same risk/return profile we prefer the more sustainable issuer.


FI 05. Negative screening - overview and rationale

05.1. Indicate why you conduct negative screening.

SSA

SSA

Corporate (financial)

Corporate (fin)

Corporate (non-financial)

Corporate (non-fin)

Securitised

Securitised

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

Strict ban on buying bonds of companies that are on an internal "banned weapons" list. The exclusion criteria include companies that are suspected to deal with banned weapons or generate more than 5% of revenues with the production, trading or transport of banned weapons.

Screening of sovereigns through MSCI rating: All countries classified as "CCC" are on an internal prohibition list.

 

05.3. Additional information. [Optional]


FI 06. Examples of ESG factors in screening process (Private)


FI 07. Screening - ensuring criteria are met

07.1. 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?
Positive/best-in-class screening

07.2. Additional information. [Optional]

Negative/Exclusionary screening: For all investment decisions the investment manager has to consider the investment guidelines in advance. This process is supported by an automated pre-order limit check. Exclusionary ESG criteria are part of the pre-check application. In case of a limit breach the portfolio manager has to repatriate the transaction and write an internal note/statement. In order to avoid similar breaches in the future, the whole process is under constant review and adjusted where necessary.

Positive/Best-in-class screening: The portfolio manager has to ensure that the best-in class criteria are taken into account.

 


Top