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Martin Currie Investment Management

PRI reporting framework 2018

You are in Strategy and Governance » Governance and human resources

Governance and human resources

SG 07. RI roles and responsibilities

07.1. Indicate the roles present in your organisation and for each, indicate whether they have oversight and/or implementation responsibilities for responsible investment.

Roles present in your organisation

          Head of Stewardship and ESG
        

Other description (1)

          Marketing Stewardship and ESG
        

07.2. For the roles for which you have RI oversight/accountability or implementation responsibilities, indicate how you execute these responsibilities.

The strategy for Martin Currie is set by the board who take into account trends in the market place, the needs of existing and potential clients and the resources that are required to deliver on the strategy.  Integrated ESG analysis is seen as an essential part of the overall offering to clients.  As such we have a dedicated resource allocated to this work - David Sheasby, a senior portfolio manager has been appointed as full-time Head of Stewardship and ESG.  He reports to the Head of Investment.  In this role David Sheasby is responsible for oversight of Martin Currie's policies on corporate governance and responsible investment and, specifically, the integration of ESG analysis into the investment process across the investment team.  Our sustainability and ESG related work is fully integrated into our investment process and we consider sustainability and ESG factors when analysing the investment case for a company. Responsibility for analysis resides with individual research specialists and portfolio managers.  All stock research is required to consider the material and relevant Governance, Social and Environmental factors that could impact the ability of the company to generate sustainable returns. As such the investment team has day-to-day responsibility for responsible investment activities.

We also have a stewardship and ESG marketing manager with an objective to build and deliver a marketing strategy for Stewardship and ESG and to increase market awareness and communication in this area.

07.3. Indicate the number of dedicated responsible investment staff your organisation has.

7 Number

07.4. Additional information. [Optional]

ESG is driven by our investment floor but involves resource from across Martin Currie, particularly from our operations team who are responsible for monitoring ESG portfolio restrictions and managing the proxy voting process.


SG 07 CC. Climate-issues roles and responsibilities (Not Applicable)


SG 08. RI in performance management, reward and/or personal development

08.1. Indicate if your organisation’s performance management, reward and/or personal development processes have a responsible investment element.

Board members/Board of trustees

Chief Executive Officer (CEO), Chief Investment Officer (CIO),  Investment Committee

Other C-level staff or head of department

          Head of Stewardship and ESG
        

Portfolio managers

Investment analysts

Dedicated responsible investment staff

08.3. Provide any additional information on your organisation’s performance management, reward and/or personal development processes in relation to responsible investment.

Our overriding objective is to ensure alignment of interests while providing incentives that attract and retain exceptional people. This is closely linked with our capacity management process, which ensures we control the capacity of our investment strategies to maintain liquidity and protect performance potential for our clients.

Given our focus on stewardship and ESG, all job descriptions for investment personnel include an element on responsible investment and annual goals will reflect the relevant priorities in this area.

Remuneration for investment personnel blends three components: basic salary, performance-based bonus and long-term incentivisation. 

Performance Based Reward

The performance-based bonus scheme pays a bonus for achievement against investment performance targets on Martin Currie funds. The bonus is determined either as a % of salary or % of revenue as appropriate (depending on fund size). A sliding scale of bonus outcomes will apply for outcomes between threshold and target performance. In addition, Investment professionals also have an element of bonus which rewards for performance against role expectations beyond investment outcomes, their individual delivery against goals and also broader contribution to the business. Given our integrated approach to ESG / Responsible Investment we do not specifically separate this out. This second element of the performance  is measured using the following five-point scale:

  • Outstanding
  • Strong
  • Effective
  • Inconsistent
  • Unsatisfactory

Risk and compliance inputs will be taken into account when determining overall bonus outcomes. For example, the number of times the tracking error is outside the agreed tolerance range, adherence to IMAs, meeting all employment, risk and compliance policy requirements.

In the case of new product launches, specific bespoke arrangement can be put in place which will typically be a percentage of salary based and focus on building the book, developing the revenue stream and creating a positive track record.

We actively encourage the development of skills and knowledge across the organisation.  All members of the investment team are required to participate in a minimum level of Continuous Professional Development (CPD) each year - both structured and unstructured.  This includes all aspects of investment.  As part of this we organise structured CPD on Responsible Investment.  This includes both internal training sessions as well as structured training through the CFA and external service providers.


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