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Pengana Capital Group

PRI reporting framework 2018

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

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
23 %
Percentage of active listed equity to which no strategy is applied
77 %
Total actively managed listed equities 123%

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

Pengana primarily applies an ethical screening policy to its ethical portfolios.

 

Good corporate governance is one of the key elements we assess, when applying our fundamental research process to the companies we invest in. Within our investment process, we favour those companies that can demonstrate a transparent approach to financial and corporate governance related disclosure, particularly where they are listed in emerging markets. In our view, good governance is a key driver of generating shareholder value over the long term.

We believe incorporating ESG factors into the investment decisions will result in superior performance over the long term.

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


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

Specifically, Pengana's ‘negative screen’ seeks to avoid investment in companies that derive operating revenues from direct and material business involvement in the following sectors: –

  • the manufacture or sale of weapons and weapons components
  • tobacco manufacture
  • gambling outlets or systems
  • intensive animal farming
  • animal testing for cosmetics
  • activities that give rise to human rights violations
  • unremediated destruction of the environment
  • uranium mining and nuclear reactors
  • fossil fuel exploration, production, refining, storage and transporation

 

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.

The screening process for the Pengana International Fund - Ethical was established 24 years ago and the Manager's ethical investment policy has evolved and been refined over the last 17 years. The negative screen has remained relatively consistent with the last major change being the implemenation of a fossil fuel screen in 2014.

Any change requires board approval and clients are notified via an update to the website, email or direct mail.


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.

05.5. 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]


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


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


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