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UBS Asset Management

PRI reporting framework 2019

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

(A) Implementation: Screening

FI 04. Types of screening applied

04.1. Indicate the type of screening you conduct.

Select all that apply
Corporate (financial)
Corporate (non-financial)
Negative/exclusionary screening
Positive/best-in-class screening
Norms-based screening

04.2. Describe your approach to screening for internally managed active fixed income

Negative Screening: We are able to incorporate negative screening lists for securities, issuers or certain sectors provided by clients into our investment process.

Positive/ Best-in class screening: We are able to tailor our investment management approach to accommodate SRI constraints within mandates directed by our clients. We also offer Sustainability focused strategies where investment guidelines include minimum and maximum limits with UBS-AM ESG scores.

Norms-based screening; We are also in the process of implementing a norms-based screening approach such that investments are screened based on whether or not they align with international standards and norms such as the UN Global Compact. For this we work with a selected service provider to develop a list of companies that are seen as breaching one or more of the principles. Cases are assessed by our sustainability specialists and, where necessary, we will initiate engagement to ensure that companies effectively close and remedy identified breaches and both communicate with stakeholders and ensure that they have addressed any management failures. Cases will be escalated for a discussion on exclusion when we consider that the engagement objectives have not been met.

04.3. Additional information. [Optional]

FI 05. Examples of ESG factors in screening process (Private)

FI 06. Screening - ensuring criteria are met

06.1. Indicate which systems your organisation has to ensure that fund screening criteria are not breached in fixed income investments.

Type of screening
Negative/exclusionary screening?
Positive/best-in-class screening
Norms-based screening

06.2. Additional information. [Optional]

We use the Sentinel system to monitor client mandates, product restrictions and regulatory requirements. Sentinel is a third party application used to automate guideline monitoring, and is used for pre- and post-trade monitoring. Accounts are monitored on a daily basis by a dedicated team who escalate any potential incidents to the portfolio manager, Client Servicing and Compliance teams.. The Sentinel Team sits within COO of UBS Asset Management so there is a segregation of duties between Sentinel and the investment areas. Any restriction changes are subject to sign off by a TRPA process and in some cases the Client Relationship Manager and Legal.