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

Rothschild & co Asset Management

PRI reporting framework 2018

Export Public Responses
Pdf-img

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities

ESG incorporation in actively managed listed equities

Implementation processes

LEI 01. Percentage of each incorporation strategy

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate (1) which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities and (2) the breakdown of your actively managed listed equities by strategy or combination of strategies (+/- 5%)

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied
29 %
Percentage of active listed equity to which the strategy is applied
71 %
Total actively managed listed equities 100%

01.2. Describe your organisation’s approach to incorporation and the reasons for choosing the particular ESG incorporation strategy/strategies.

We are primarily an active high alpha / high conviction investment management company. Investment decisions are based on an in-depth fundamental analysis of stocks. Our ESG approach is based on integration for the three following reasons:

1- We started its implementation in 2011 with a very pragmatic approach. Our objective was to encompass all the bulk of managed assets and not just to have a "best in class" fund, managed separately alongside the rest of our flagship fund range.

2- In our investment process, ESG criteria contribute among other financial investment criteria to support our investment choices and our portfolio construction.

3- In addition, ESG analysis reinforces our understanding of long-term corporate risks and opportunities.

01.3. If assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]

Financial analysts have structured their work according to a Bottom-up approach which consists first in identifying investment opportunities (with no constraints). Then the ESG is broken down into 3 steps :

1- Exclusion criteria : we ban companies that have land Mines & Cluster munitions activities and identify companies that do not respect principles in the field of human rights, labour, environment and anti-corruption, criteria, mainly derived from the UN Global Compact's ten principles (only for funds complying with this exclusions list).

2- Qualitative analysis : For each criteria E, S and G, specific strengths and weaknesses are identified for each company depending on the sector.

3- Quantitative analysis : an ESG score is attributed to each company. We have created an internal ESG rating for each company in our investment list for both European and US equity and FI . This is partly based on the independent ESG rating provided by MSCI which is enriched with our own assessment of ESG analysis for each company we cover.

For each company included in our investment list, the equity analysts publish a one-pager. The above 3 steps lead to the ESG analysis summary and an overall ESG score.


LEI 02. Type of ESG information used in investment decision (Private)


LEI 03. Information from engagement and/or voting used in investment decision-making (Private)


(A) Implementation: Screening

LEI 04. Types of screening applied

04.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by

Description

we ban companies that have land Mines & Cluster munitions activities

Screened by

Description

We use reference lists to make sure that we exclude from most of our equity funds' companies that do not comply with some key fundamental principles: Severe environmental damages, serious violations of human rights, gross corruption, serious violations of individual’s rights in situation of conflict, other violations of ethical norms.

04.2. Describe how the screening criteria are established, how often the criteria are reviewed and how you notify clients and/or beneficiaries when changes are made.

=>Mandatory exclusions: Land mines and cluster munitions, checked on a yearly basis.

=> Discretionary exclusions: Companies that do not respect principles in the field of human rights, labor, environment and anti-corruption, criteria which are mainly derived from the UN Global Compact's ten principles: update on a yearly basis as a minimum (only applicable for funds committed to comply with this exclusions list).

- Exclusions lists might be communicated to clients if needed or requested.

- Clients might provide us specific exclusion lists to respect in their funds.


LEI 05. Processes to ensure screening is based on robust analysis

05.1. Indicate which processes your organisation uses to ensure screening is based on robust analysis.

05.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your ESG screening strategy.

05.3. Indicate how frequently third party ESG ratings are updated for screening purposes.

05.4. Indicate how frequently you review internal research that builds your ESG screens.

05.5. Additional information. [Optional]


LEI 06. Processes to ensure fund criteria are not breached (Private)


(C) Implementation: Integration of ESG issues

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate which ESG factors you systematically research as part of your investment analysis and the proportion of actively managed listed equity portfolios that is impacted by this analysis.

ESG issues

Proportion impacted by analysis
Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]

Thanks to MSCI ESG Research, the part of our equity funds covered by research is very high (from 70% over mid-cap funds to 99% for large cap funds).

 

 


LEI 09. Processes to ensure integration is based on robust analysis (Private)


LEI 10. Aspects of analysis ESG information is integrated into (Private)


Top