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Ashmore Group plc

PRI reporting framework 2019

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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
0 Integration alone
100 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
0 Integration alone
100 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.

Environmental, social and governance (ESG) analysis is explicitly integrated into our bottom up process across all our Fixed Income strategies. Our process is fundamentally driven and our issuer analysis encompasses a multitude of factors, including ESG.

Our assessment of an issuer’s ability to manage ESG successfully is integral to our determination of fair value (local currency) and fair spread (credit). Both governments and corporate management teams that can demonstrate strong ESG credentials are more likely to boost economic development and financial performance with lower volatility over time. Consequently, ESG factor analysis is integrated into our investment process, acting as a form of risk management and a source of alpha generation. We also consider it part of our fiduciary duty as stewards of our clients’ capital.

The ESG integration is overlaid by Ashmore's norms-based screening process, where investments that do not meet minimum standards are excluded from client portfolios. Ashmore fully supports the Oslo convention, which prohibits investment in companies manufacturing cluster munitions. Ashmore seeks to comply with applicable government authorities, and at a geographical level, screens across all investment themes for countries on the UN Security Council and EU/UK Sanctions and the US Office of Foreign Assets and Control lists.

01.3. Additional information [Optional].

Ashmore is able to customise client portfolios to meet specific requirements for geographic, sector and stock specific restrictions, such as alcohol, animal/food products, armaments manufacturers or dealers, gambling, pornography, tobacco and coal.


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:

specify description

          Use of recognised industry identifiers and coding into Ashmore's portfolio management system. Use of UN, EU/UK sanctions and US OFAC country lists.
        

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

03.3. Additional information. [Optional]


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