The key principles guiding Credit selection encompasses developed market corporate, financial and structured debt. Each corporate entity under consideration is subject to an ESG Assessment, including independent external ESG ratings and the Portfolio Manager assessment.
Adverse ESG findings will automatically reduce the issuer rating and a further review is completed considering materiality of factors and based on the internal assessment of the Portfolio Manager.
Issuers that have been flagged with an ESG rating below a defined rating threshold are then put on a more frequent ESG review cycle.
In addition to this assessment process publicly sourced Controversies research is used to identify any market sensitive ESG developments which could affect credit outlook for entities.
Materially negative developments may result in the entity being included in the final monitoring and watch list process.
All entities are screened subject to QBE Global Sanctions Policy, and the Group Investments Sanctions Policy.
Monitoring - All issuers are subject to ongoing monitoring by Portfolio Managers with a focus on credit rating, news flow or changes in financial outlook of the company, including daily monitoring. ESG considerations complement these practices, including issuers where there is increased potential for risk including emerging controversies.