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

ESG Portfolio Management

PRI reporting framework 2019

Export Public Responses
Pdf-img

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

ESG incorporation in actively managed fixed income

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
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
100 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (financial)
0 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
100 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (non-financial)
0 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
100 All three strategies combined
0 No incorporation strategies applied
100%
Securitised
0 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
100 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.

 

We use screening, thematic and integration strategies to reduce our investment risk, to enhance return potential and to improve stakeholders' lives. (Triple win)

Potential investments are excluded when the companies are in the business of controversial weapons or nuclear energy, or if the companies generate more than five percent of sales in the areas of alcohol, coal, gaming, oil, pornography, tobacco or weapons.

ESG (Environmental, social and governance) criteria are part of the security analysis and selection process besides the economic and financial quality, as they are relevant for the risk and return. (See examples in the graphic). We use data from specialized ESG rating agencies and data providers.   

We do not invest in those government bonds and corporations with poor ESG quality or significant controversies or incidentslike conflicting human rights.

The fund management engages actively to enhance the ESG quality of issuers. For this purpose the fund managements enters a constructive dialogue with the management to reduce the investment’s risk and develop performance opportunities.

Furthermore, ESG Portfolio Management is embedding the Sustainable Development Goals (SDGs) of the United Nations. Every investment aims to follow at least one of the seventeen SDGs.

01.3. Additional information [Optional].

We perform this task for every portfolio position


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]

We need to ensure high ESG quality before we buy any security.


(A) Implementation: Screening

FI 04. Types of screening applied

04.1. Indicate the type of screening you conduct.

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

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

Potential investments are excluded when the companies are in the business of controversial weapons or nuclear energy, or if the companies generate more than five percent of sales in the areas of alcohol, coal, gaming, oil, pornography, tobacco or weapons.

We require a minimum ESG rating of BBB (by MSCI ESG). In case there is no MSCI ESG Rating we use imug ratings. We aim to have best in class positions (companies and SSAs) to achieve extremely high portfolio ESG scores.

04.3. Additional information. [Optional]

ESG Portfolio Management is also embedding the Sustainable Development Goals (SDGs) of the United Nations. Every investment aims to follow at least one of the seventeen SDGs.


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

06.2. Additional information. [Optional]

We work with our fund administrator to ensure that we are in compliance with our guidelines (including filter criteria and ESG minimum ratings)


(B) Implementation: Thematic

FI 07. Thematic investing - overview (Private)


FI 08. Thematic investing - themed bond processes

08.1. Indicate whether you encourage transparency and disclosure relating to the issuance of themed bonds as per the Green Bonds Principles, Social Bond Principles, or Sustainability Bond Guidelines..

08.2. Describe the actions you take when issuers do not disburse bond proceeds as described in the offering documents.

We would sell the bonds within six months

08.3. Additional information. [Optional]


FI 09. Thematic investing - assessing impact

09.1. Indicate how you assess the environmental or social impact of your thematic investments.

09.2. Additional information. [Optional]

We measure the carbon emissions of every position in our portfolios at least monthly


(C) Implementation: Integration

FI 10. Integration overview

10.1. Describe your approach to integrating ESG into traditional financial analysis.

ESG (Environmental, social and governance) criteria are part of the security analysis and selection process besides the economic and financial quality, as they are relevant for the risk and return. We use data from specialized ESG rating agencies and data providers. Additionally, we internally look at material and relevant ESG factors and potential controversies for the companies depending on sector and region.   

10.2. Describe how your ESG integration approach is adapted to each of the different types of fixed income you invest in.

SSA

The relevant ESG factors (KPIs) might differ comparing goverment bonds or agencies. Here we focus also on regions and possible geopolitical or climate risks.

Corporate (financial)

ESG (Environmental, social and governance) criteria are part of the security analysis and selection process besides the economic and financial quality, as they are relevant for the risk and return. We use data from specialized ESG rating agencies and data providers. Additionally, we internally look at material and relevant ESG factors - here especially corruption, governance and treatment of employees.

Corporate (non-financial)

ESG (Environmental, social and governance) criteria are part of the security analysis and selection process besides the economic and financial quality, as they are relevant for the risk and return. We use data from specialized ESG rating agencies and data providers. Additionally, we internally look at material and relevant ESG factors for the companies depending on sector and region.   

Securitised

ESG (Environmental, social and governance) criteria are part of the security analysis and selection process besides the economic and financial quality, as they are relevant for the risk and return. We use data from specialized ESG rating agencies and data providers fo the issuers. Additionally, we internally look at material and relevant ESG factors for the asset pools (like mortgages) depending on sector and region.   

10.3. Additional information [OPTIONAL]


FI 11. Integration - ESG information in investment processes

11.1. Indicate how ESG information is typically used as part of your investment process.

Select all that apply
SSA
Corporate (financial)
Corporate (non-financial)
Securitised
ESG analysis is integrated into fundamental analysis
ESG analysis is used to adjust the internal credit assessments of issuers.
ESG analysis is used to adjust forecasted financials and future cash flow estimates.
ESG analysis impacts the ranking of an issuer relative to a chosen peer group.
An issuer's ESG bond spreads and its relative value versus its sector peers are analysed to find out if all risks are priced in.
The impact of ESG analysis on bonds of an issuer with different durations/maturities are analysed.
Sensitivity analysis and scenario analysis are applied to valuation models to compare the difference between base-case and ESG-integrated security valuation.
ESG analysis is integrated into portfolio weighting decisions.
Companies, sectors, countries and currency and monitored for changes in ESG exposure and for breaches of risk limits.
The ESG profile of portfolios is examined for securities with high ESG risks and assessed relative to the ESG profile of a benchmark.
Other, specify

11.2. Additional information [OPTIONAL]

We screen the ESG quality of every position in our portfolios at least weekly


FI 12. Integration - E,S and G issues reviewed

12.1. Indicate the extent to which ESG issues are reviewed in your integration process.

Environment
Social
Governance
SSA

Environmental

Social

Governance

Corporate (financial)

Environmental

Social

Governance

Corporate (non-financial)

Environmental

Social

Governance

Securitised

Environmental

Social

Governance

12.2. Please provide more detail on how you review E, S and/or G factors in your integration process.

SSA

ESG (Environmental, social and governance) criteria are part of the security analysis and selection process besides the economic and financial quality, as they are relevant for the risk and return. We use data from specialized ESG rating agencies and data providers. We analyse the ESG quality for every position at least weekly and check for any controversies or critical incidents.  

Corporate (financial)

ESG (Environmental, social and governance) criteria are part of the security analysis and selection process besides the economic and financial quality, as they are relevant for the risk and return. We use data from specialized ESG rating agencies and data providers. We analyse the ESG quality for every position at least weekly and check for any controversies or critical incidents.  

Corporate (non-financial)

ESG (Environmental, social and governance) criteria are part of the security analysis and selection process besides the economic and financial quality, as they are relevant for the risk and return. We use data from specialized ESG rating agencies and data providers. We analyse the ESG quality for every position at least weekly and check for any controversies or critical incidents.  

Securitised

ESG (Environmental, social and governance) criteria are part of the security analysis and selection process besides the economic and financial quality, as they are relevant for the risk and return. We use data from specialized ESG rating agencies and data providers. For securitised bonds we analyse also the pool (like mortgages). 

12.3. Additional information.[OPTIONAL]


Top