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Macquarie Asset Management

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]

Our specialized, independent investment teams are focused on delivering long-term, consistent results for our clients.  Each team has autonomy to execute on its own investment philosophy.  All of our teams share several traits: independent thinking, global perspectives and conviction in their specialized investment philosophies.

The majority of our equity investment teams employ a fundamental approach towards identifying and assessing securities.  Inherent to their investment process is an in-depth analysis of economic, competitive and other factors that may influence future revenues and earnings, including factors that have been identified as material from an ESG perspective.


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.

09.3. Indicate how frequently third party ESG ratings that inform your ESG integration strategy are updated.

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

09.6. Additional information.[Optional]

The responses provided above represent an aggregate of different practices employed by our independent investment teams and do not necessarily indicate that each team employs all of these practices.

Each investment team has access to ESG-specific opinions and insights from our third-party provider, but the majority of our information is obtained via our teams’ own independent research.  While not necessarily seeking ESG-specific information, the research that our teams conduct oftentimes focuses on issues that may also be relevant from an ESG perspective.

MIM’s ESG Oversight Committee is responsible for assessing the quality of research produced by our third-party provider.  This entails consultations with the provider and review of their research process.  The Committee also periodically assesses other research providers in order to provide a basis of comparison as well as a source for potential replacements or complements to our existing provider.

MIM’s Quantitative Research team is able to provide the majority of our teams with a risk profile that compares the ESG ratings of the team’s portfolio against its respective benchmark as well as an attribution that assesses the positive or negative contribution to investment performance from each ESG ratings group.


LEI 10. Aspects of analysis ESG information is integrated into

New selection options have been added to this indicator. Please review your prefilled responses carefully.

10.1. Indicate which aspects of investment analysis you integrate material ESG information into.

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

10.2. Indicate which methods are part of your process to integrate ESG information into fair value/fundamental analysis and/or portfolio construction.

10.3. Describe how you integrate ESG information into portfolio weighting.

Each of our independent investment teams employ their own methods of integrating ESG information into portfolio weighting and the integration of ESG information into portfolio weighting varies by teams. 

10.4. Describe the methods you have used to adjust the income forecast / valuation tool

Income forecast/valuation tools vary by team, but in many instances material factors that may affect future earnings are incorporated into the process.  Often times factors that are considered by teams in the forecasting and valuation processes are also considered to be material ESG factors.

10.6. Additional information. [OPTIONAL]


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