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

Afena Capital (Pty) Limited

PRI reporting framework 2019

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

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
100 %
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 have integrated an ESG score into the quality assessments of listed equity. The quality assessment of a stock in question determines the 'margin of safety' to which we attach to our valuation of that stock, thus limiting and at times preventing entirely our investment into stocks that look attractive on price but do not hold up on quality and ESG factors.

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

02.1. Indicate what ESG information you use in your ESG incorporation strategies and who provides this information.

Type of ESG information

Indicate who provides this information  

Indicate who provides this information 

Indicate who provides this information 

Indicate who provides this information 

Indicate who provides this information 

02.2. Indicate if you incentivise brokers to provide ESG research.

02.3. Describe how you incentivise brokers.

We have a ranking process whereby brokers that are higher ranked receive larger percentages of execution orders. ESG research is one contributing factor to improving the ranking of a broker.

02.4. Additional information.[Optional]


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

03.1. Indicate if your organisation has a process through which information derived from ESG engagement and/or (proxy) voting activities is made available for use in investment decision-making.

03.2. Additional information. [Optional]

We have adopted two approaches as the pillars of our Responsible Investing strategy:

 

1. ESG integration into our investment process with a view to helping our analysts make more informed investment decisions
2. Being active share owners by undertaking voting and, where appropriate engagement activities

 

We believe that following the above Responsible Investing strategy enhances the depth and breadth of our investment research process and helps us to consider a wider range of risks and opportunities within the universe of companies we invest in on behalf of our clients.


(C) Implementation: Integration of ESG factors

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate the 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

09.1. Indicate which processes your organisation uses to ensure ESG integration is based on a robust analysis.

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

09.3. Indicate how frequently third party ESG ratings that inform your ESG integration strategy are updated.

09.5. Describe how ESG information is held and used by your portfolio managers.

09.6. Additional information.[Optional]

We have integrated an ESG score into the quality assessments of every listed equity we analyse. The quality assessment of a stock in question determines the 'margin of safety' to which we attach to our valuation of that stock, thus limiting and at times preventing entirely our investment into stocks that look attractive on price but do not hold up on quality and ESG factors.


LEI 10. Aspects of analysis ESG information is integrated into

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

10.1. Indicate which aspects of investment analysis you integrate material ESG information into.

Proportion of actively managed listed equity exposed to investment analysis

10.2. Indicate which methods are part of your process to integrate ESG information into fair value/fundamental analysis and/or portfolio construction.

          ESG criteria is included in the assessment of company quality, which determines the margin of safety to which we attach to the fundamental valuation.
        

10.4. Describe the methods you have used to adjust the income forecast / valuation tool

See above - all our fair valuations of companies have an associated margin of safety - which essentially adjusts the fair value up or down depending on the company's quality (including ESG criteria) and prospects.

10.6. Additional information. [OPTIONAL]


Top