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BBVA Fondo de Empleo

PRI reporting framework 2019

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

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

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

Pension Fund's Investment Policy:

The investment policy applied to the total assets of the Fund, as well as the investment analysis and decision-making processes, incorporate the criteria of "Socially Responsible Investment". The objective is both to improve the risk-return of investments and to fulfill the social responsibility of the Pension Fund. All European fixed income (SSA) and Listed Equity are subject to this double analysis of financing and SRI criteria.


For the implementation of the SRI policy, our asset manager contracts the services of an external provider, MSCI, who provide it with the analysis of the individual investments as well as a series of indicators (ESG ratings) that allow it to assess the SRI risks of companies in the portfolio.


We have included a brief description of our asset manager`s investment policy in the following section (*)

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

(*) Gestion de Previsión y Pensiones, E.G.F.P., S.A.'s (GPP) policy is based on four main pillars:


Integration of ESG issues in the investment process: The integration of ESG issues in the investment process is coherent with our fiduciary duty to protect our clients interests. Thus, GPP has considered the previous approach in its strategic investment process for all the Pension Funds under management in order to improve the risk return profile of the investments, accomplishing at the same time with the social responsability goals inherent to Pension Funds. We are analysing the major European sectors and governments, using third party research, in order to be able to identify the relevant issues from ESG perspective and ranking companies and governments according to their credentials.


Rules of Conduct in Defence: The BBVA Defense Rule applies to all units and subsidiaries of the BBVA Group Worldwide and to all financial services. For the purposes of this policy, BBVA uses exclusion lists of companies and countries, prepared and regularly updated with the help of independent experts.


Proxy Voting: In both Spanish and European companies for the listed equity managed in our portfolios.


Engagement: Through our participation in associations different associations who aims to promote changes in the investment process and the investment community, such as governments, businesses and the public in general. Additionally, GPP has engaged with companies to motivate them to make more flexible the process of Proxy Voting through electronic ways, or for requiring them further information related to the AGM's to which we attend under our clients' delegation.

01.6. Additional information [Optional].

          
        
I confirm I have read and understood the Accountability tab for SG 01 I confirm I have read and understood the Accountability tab for SG 01

SG 01 CC. Climate risk (Not Applicable)


SG 02. Publicly available RI policy or guidance documents

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

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Additional information [Optional].

BBVA PENSION FUND:

It is publicly available that BBVA Pension Fund, as asset owner, became a signatory of the United Nations Principles Responsible Investment in 2008.

The responsible investment policy is not publicly availabe, but it is available to members and beneficiaries of the Pension Plan through the "Oficina del Partícipe y Beneficiario" (Participant's and Beneficiary's Office).

The Pension Plan has more than 35.000 members and more than 9.000 beneficiaries.

 

ASSET MANAGER: GPP

On the other hand, our asset manager's investment policy has been continuously in process of development and communicate it to their clients in the periodic meetings they celebrate with them all.

Strictly speaking, the document above indicated might not be considered as a SRI policy, however it is a communication paper sent to the whole universe of their institutional clients, explaining all the details of their SRI policy. Moreover, it appears in a public web with access not only to their clients but to the general public.

All the publications can be found in the following links:

https://www.bbvaassetmanagement.com/am/am/es/es/particular/actualidad/video/index.jsp?tcm=tcm:864-525312&pag_num=9

https://www.bbvaassetmanagement.com/am/am/es/es/prevision-colectiva/meta/isr/politica-isr-bbvaam.jsp

The document comes written in Spanish, so let me sum up the key points shown in the SRI newsletter:

  • Firstly, the document reviews the origin of the SRI initiative by United Nations, and as a consequence of their commitment with this issue.
  • Secondly, it explains their approach by focusing on several points such as the integration of ESG criteria in the investment process, exclusions based on Rules in Conduct of Defense, extension of the ESG analysis to their externally managed assets, the proxy voting policy and the increase of resources dedicated to the development of their SRI policy.

          http://bancaresponsable.com/wp-content/uploads/2015/02/norma-defensa_mayo2014-eng.pdf

  • Finally, it also makes a review of the specialized providers hired by their company to supply their clients with the highest quality information.

SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.3. Additional information. [Optional]

Spanish pension fund regulation stablishes a mandatory requirement about the separation of functions between the depositary insititution and the asset manager.

Additionally, the asset manager (Gestión de Previsión y Pensiones, E.G.F.P., S.A.) has a policy on managing potential conflicts of interest in the investement process.


SG 04. Identifying incidents occurring within portfolios (Private)


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