Our fixed income investments include private direct lending, leveraged loans (including CLOs) and listed fixed income management (investment grade and high yield).
In terms of ESG screening, Group exclusion principles are applied to potential investments. Manufacturers of controversial weapons and issuers based in high risks jurisdictions are excluded.
In terms of ESG evaluation approach, investment analysts perform a detailed review of each potential investment which includes a range of ESG factors. This is being formalized by implementing a proprietary ESG risk tool. If there is a concern over an investment opportunity (e.g.. polluting industry, controversial businesses, etc.), the ESG committee will be called.
ESG monitoring processes will be implemented from 2018: In terms of ESG monitoring for listed fixed income securities and CLOs, research analysts will update the analysis risk tool on an annual basis. In terms of ESG monitoring for private debt securities, an ESG questionnaire will be sent to portfolio companies and the results will be monitored by investment teams.
For companies offering a greater access to management, the investment teams may ask ESG questions during management interviews and promote best practices.