Public HTML RI reports - PRI reporting framework 2019

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

0 Integration alone

0 Screening + integration strategies

0 Thematic + integration strategies

0 Screening + thematic strategies

0 All three strategies combined

100 No incorporation strategies applied

100%

Corporate (non-financial)

100 Screening alone

0 Thematic alone

0 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.

Mainly screening due to lack for resources and domestic fixed income options.

01.3. Additional information [Optional].

Regarding SSA fixed income, we invest heavily in Icelandic Government bonds and don't exactly screen the Icelandic government on ESG issues, although we fully assume that the government behaves in ways that are in accordance with ESG standards, for example, the Icelandic government has selected a number of UN Sustainable goals on which they are going to emphasize on.

FI 02. ESG issues and issuer research (Private)

FI 03. Processes to ensure analysis is robust

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

Comprehensive ESG research is undertaken internally to determine companies’ activities; and products and/or services

Issuers are given the opportunity by you or your research provider to review ESG research on them and correct inaccuracies

Issuer information and/or ESG ratings are updated regularly to ensure ESG research is accurate

Internal audits and regular reviews of ESG research are undertaken in a systematic way.

A materiality/sustainability framework is created and regularly updated that includes all the key ESG risks and opportunities for each sector/country.

Other, specify

None of the above

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

ESG information is held within a centralised database and is accessible to all investment staff

ESG information is displayed on front office research platforms

ESG information is a standard item on all individual issuer summaries, research notes, ‘tear sheets’, or similar documents

Investment staff are required to discuss ESG information on issuers as a standard item during investment committee meetings

Records capture how ESG information and research was incorporated into investment decisions

Other, specify

          Should a member of the investment committee reach any findings, other members, along with the fund's management would be informed.

None of the above

03.3. Additional information. [Optional]

Due to lack of resources, manpower and the fact that formal ESG issues are relatively new to the Icelandic investment environment, we do not do (nor are provided with) "systematic research" on issuers, but we fully assume that they incorporate ESG issues in their operations. Should we find out that that was not the case, we react accordingly on an ad-hoc basis.

(A) Implementation: Screening

FI 04. Types of screening applied

04.1. Indicate the type of screening you conduct.

Select all that apply

			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

Due to lack of resources, manpower and the fact that formal ESG issues are relatively new to the Icelandic investment environment, we do not do (nor are we provided with) "systematic research" on issuers, but we fully assume that they incorporate ESG issues in their operations. Should we find out that that was not the case, we react accordingly on an ad-hoc basis.

04.3. Additional information. [Optional]

FI 05. Examples of ESG factors in screening process (Not Completed)

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	Checks
Negative/exclusionary screening?	Analysis is performed to ensure that issuers meet screening criteria We ensure that data used for the screening criteria is updated at least once a year. Automated IT systems prevent our portfolio managers from investing in excluded issuers or bonds that do not meet screening criteria Audits of fund holdings are undertaken yearly by internal audit or compliance functions Other, specify None of the above
Norms-based screening	Analysis is performed to ensure that issuers meet screening criteria We ensure that data used for the screening criteria is updated at least once a year. Automated IT systems prevent our portfolio managers from investing in excluded issuers or bonds that do not meet screening criteria Audits of fund holdings are undertaken yearly by internal audit or compliance functions Other, specify None of the above

Birta lifeyrissjodurinn

PRI reporting framework 2019

ESG incorporation in actively managed fixed income

Implementation processes

FI 01. Incorporation strategies applied

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

01.3. Additional information [Optional].

FI 02. ESG issues and issuer research (Private)

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]

(A) Implementation: Screening

FI 04. Types of screening applied

04.1. Indicate the type of screening you conduct.

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

04.3. Additional information. [Optional]

FI 05. Examples of ESG factors in screening process (Not Completed)

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.

06.2. Additional information. [Optional]

(B) Implementation: Thematic

FI 07. Thematic investing - overview (Not Applicable)

FI 08. Thematic investing - themed bond processes (Not Applicable)

FI 09. Thematic investing - assessing impact (Not Applicable)

(C) Implementation: Integration

FI 10. Integration overview (Not Applicable)

FI 11. Integration - ESG information in investment processes (Not Applicable)

FI 12. Integration - E,S and G issues reviewed (Not Applicable)