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

AMP Capital Investors

PRI reporting framework 2019

Export Public Responses
Pdf-img

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » Implementation processes

Implementation processes

FI 01. Incorporation strategies applied

Indicate (1) Which ESG incorporation strategy and/or combination of strategies you apply to your actively managed fixed income investments; and (2) The proportion (+/- 5%) of your total actively managed fixed income investments each strategy applies to.
SSA
0 Screening alone
0 Thematic alone
100 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (financial)
0 Screening alone
0 Thematic alone
100 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (non-financial)
0 Screening alone
0 Thematic alone
100 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%

01.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

AMP Capital's ESG and Responsible Investment Philosophy details our organisational commitments and objectives in relation to ESG integration across the business. Our investment teams are then responsible for implementing ESG integration techniques that reflect the characteristics of each asset class and taking into account our client's specific requirements with particular investments or funds.

Our credit research philosophy anchors our approach in fixed income. It is based upon identification of what we believe ,the best quality companies (issuers) that have sustainable competitive advantages within their industries and possess financial flexibility to protect their balance sheet and generate positive earnings and cash flow through the cycle. As part of our approach we therefore consider how ESG factors may impact upon credit risk.

Our observation is that fixed income investors are generally not as focused on ESG issues as equity investors. As a result, such risks may not currently be adequately priced by the market or credit ratings agencies. AMP Capital believes ESG integration provides opportunities for our investment team to help identify mis-priced securities.

For a very small proportion of investments, (e.g. separately managed accounts), we may apply a combination of ESG integration with selective screening techniques to meet our client's requirements.

01.3. Additional information [Optional].


FI 02. ESG issues and issuer research

02.1. Indicate which ESG factors you systematically research as part of your analysis on issuers.

Select all that apply
SSA
Corporate (financial)
Corporate (non-financial)
Environmental data
Social data
Governance data

02.2. Indicate what format your ESG information comes in and where you typically source it

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  

02.3. Provide a brief description of the ESG information used, highlighting any differences in sources of information across your ESG incorporation strategies.

AMP Capital has a dedicated in-house ESG research capability to review external ESG data, generate proprietary data and insights and, working with AMP Capital's Credit team within the Global Fixed Income team, generate information advantages and exploitable investment ideas. Additional ESG insights are derived from:

Over 600 one-on-one issuer meetings per year. Meetings with company management are typically attended by fixed income portfolio managers, credit analysts and ESG research analysts.

Field trips, industry seminars and desk-based research to support issuer-specific, thematic or sector-based analyses. The ESG Research team provides specific analysis on a particular company or reviews the impact of certain ESG issues upon particular sectors. Previous examples include links between corporate governance issues and management quality, carbon pricing and regulation reviews, and analysis of mining-related health and safety issues in developing countries.

In-house ESG research covering 200 ESG metrics, with information drawn from company meetings, ESG disclosures, and other stakeholders (e.g. labour unions, NGOs etc.)

External providers, primarily for international issuers accessing additional ESG-related information and ratings on over 6,000 companies and accounting and governance ratings (AGR) on over 20,000 issuers.

Non-consensus information sources including suppliers, customers and industry bodies.

02.4. Additional information. [Optional]


FI 03. Processes to ensure analysis is robust

03.1. Indicate how you ensure that your ESG research process is robust:

03.2. Describe how your ESG information or analysis is shared among your investment team.

03.3. Additional information. [Optional]


Top