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LarrainVial Asset Management

PRI reporting framework 2019

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

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

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.6. Additional information [Optional].

          We do have an Investment Policy and we also have a Voting Policy. At the time of this report, we are in the process of developing a Responsible Investment specific working paper.
        
I confirm I have read and understood the Accountability tab for SG 01 I confirm I have read and understood the Accountability tab for SG 01

SG 01 CC. Climate risk (Not Applicable)


SG 02. Publicly available RI policy or guidance documents (Not Applicable)


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

LVAM’s “Manual de Administración de Conflictos de Interés” addresses the following COIs that have been identified:

         Use of brokerage services of Larraín Vial Group:

         Allocations between portfolios with the same investment objective:

         Between the investment function and the Risk&Control function:

         Between the Investment and Trading functions;

         IPO’s where LarraínVial stock broker participates;

         Personal operations of LVAM’s employees.

         Voting and appointment of directors in companies where portfolios hold investments.

 

Furthermore, we have specific policies covering most of those matters:

Brokerage counterparty selection (‘Política de Selección de Intermediarios’).
Operations and transactions with related parties (“Política de Habitualidad”).
Trading orders execution and securities allocation (Best Execution Policy).
Personal investments (Manual de Operaciones Personales)
General meetings participation and voting. (Asistencia y Votación en Juntas de Accionistas)

 

All these policies have been approved by LVAM’s board and are reviewed on a yearly basis. LVAM’s corporate governance structure includes multiple layers of control.

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios

04.1. Indicate if your organisation has a process for identifying and managing incidents that occur within portfolio companies.

04.2. Describe your process on managing incidents

Our portfolios are monitored on a daily basis using multidimensional risk management tools, allowing to identify any extraordinary event. Furthermore, our teams are updated about market news through several sources and have direct communication with companies to address any topic that is deemed to be material. Analysts and PMs work together in a single, open space, which allows for continuous interaction and for immediate discussion when a special circumstance arises. Incidents are assessed one on one to undertake any action on the portfolios. Investment teams have set up stop loss and sell rules that might activate depending on the impact of the incident and its implications for the company’s perspectives. 


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