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Income Research & Management

PRI reporting framework 2018

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

(C) Implementation: Integration

FI 11. Integration overview

11.1. Describe your approach to integrating ESG into traditional financial analysis.

We consider Environmental, Social, and Governance factors during our credit review process and believe issuers that exhibit elevated/lowered levels of key ESG risks have more/less volatile credit spreads and have a greater/lesser potential for negative credit events. Our integrated approach is applied to all new credits and existing holdings such that ESG considerations are evaluated concurrent with traditional credit analysis such that it is a holistic risk assessment.


Environmental, Social, and Governance factors are broken down into 10 key themes. Those key themes are further segmented into 32 key issues. Our Analysts identify which key issues are most relevant for each sector they cover. Key metrics are then mapped for the aforementioned key issues at the sub-sector level. Key metrics are used to benchmark credits against their peers.

11.2. Describe how your ESG integration approach is adapted to each of the different types of fixed income you invest in.

SSA

See above, our approach is consistent across SSA and Corporate categories.

Corporate (financial)

See above, our approach is consistent across SSA and Corporate categories.

Corporate (non-financial)

See above, our approach is consistent across SSA and Corporate categories.

11.3. Additional information [OPTIONAL]


FI 12. Integration - ESG information in investment processes

12.1. Indicate how ESG information is typically used as part of your investment process.

Select all that apply
SSA
Corporate (financial)
Corporate (non-financial)
ESG analysis is integrated into fundamental analysis
ESG analysis is integrated into security weighting decisions
ESG analysis is integrated into portfolio construction decisions
ESG analysis is a standard part of internal credit ratings or assessment
ESG analysis for issuers is a standard agenda item at investment committee meetings
ESG analysis is regularly featured in internal research notes or similar
ESG analysis is a standard feature of ongoing portfolio monitoring
ESG analysis featuresĀ in all internal issuer summaries or similar documents
Other, specify

12.2. Additional information [OPTIONAL]


FI 13. Integration - E,S and G issues reviewed

13.1. Indicate the extent to which ESG issues are reviewed in your integration process.

Environment
Social
Governance
SSA

Environmental

Social

Governance

Corporate (financial)

Environmental

Social

Governance

Corporate (non-financial)

Environmental

Social

Governance

13.2. Please provide more detail on how you review E, S and G factors in your integration process.

SSA

Analysis of each E, S, and G factors are performed by our Municipal Analysts and summarized in routinely published research notes as a component of the fundamental credit research process.

Corporate (financial)

Mandatory analysis of each E, S, and G factors are performed by our Credit Analysts and summarized in routinely published research notes as a component of the fundamental credit research process.

Corporate (non-financial)

Mandatory analysis of each E, S, and G factors are performed by our Credit Analysts and summarized in routinely published research notes as a component of the fundamental credit research process.

13.3. Additional information.[OPTIONAL]


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