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Ashmore Group plc

PRI reporting framework 2019

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You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes » (C) Implementation: Integration of ESG factors

(C) Implementation: Integration of ESG factors

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate the ESG factors you systematically research as part of your investment analysis and the proportion of actively managed listed equity portfolios that is impacted by this analysis.

ESG issues

Proportion impacted by analysis
Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]

Portfolio managers / analysts score each issuer by: 1/ the issuer’s current level of performance against global best ESG practice and 2/ the quality of their policies and initiatives designed to improve their ESG performance. The issuer is scored for each of the six questions on a scale of 1 – 5 (very poor to very good). The portfolio manager / analyst explicitly records their view in a dedicated ESG section in a standardised Investment Thesis Report. Their comments are structured around the six questions and conclude with a total ESG score.

Portfolio managers / analysts systematically assess a range of environmental, social and governance factors to form a view on a company’s ESG risks, opportunities and performance. The relevance and materiality of each of these factors varies depending on the company, sector and geography. The ESG risk / opportunity is incorporated through financial estimates and valuation, for example it may mean applying a discount/premium to its fair value. Taken in combination with other portfolio construction drivers, including our overall level of conviction, investment time horizon, liquidity considerations and the investable universe, ESG will directly impact our investment in a stock and its position sizing in the portfolio.


LEI 09. Processes to ensure integration is based on robust analysis

09.1. Indicate which processes your organisation uses to ensure ESG integration is based on a robust analysis.

09.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your integration strategy.

09.4. Indicate how frequently you review internal research that builds your ESG integration strategy.

09.5. Describe how ESG information is held and used by your portfolio managers.

09.6. Additional information.[Optional]

In keeping with our process, the Investment Thesis Report is challenged and the ESG score agreed at the relevant theme sub-Investment Committee. The report provides the basis for our final view on a stock and our level of conviction. Portfolio managers/analysts review ESG issuer scores annually at a minimum. The review is conducted at the respective sub-Investment Committee. Additional ESG reviews are triggered on an event-led basis and are led by the portfolio manager/analyst. The quality and consistency of ESG scoring across all portfolios is reviewed on a quarterly basis by the Head of Sustainability and ESG Integration.


LEI 10. Aspects of analysis ESG information is integrated into (Private)


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