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

SPOV (Delisted)

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

Our internally managed government bond portfolio solely focusses on developed countries. For these countries we only apply exclusionary screening.

Our credit portfolio is subject to the exclusion list (applicable to all asset classes). Besides this, an integrated analysis is made of every company, including both financial as well as ESG metrics. Additionally, we have some investments in green bonds in the portfolio. Green bonds are accepted in the portfolio on the same premises as all other investments.

01.3. Additional information [Optional].


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.

          Analysts conduct research for both credit and equity securities. They sit closely together with the portfoliomanagers credits and portfoliomanager SRI, wherefore information is shared naturally.
        

03.3. Additional information. [Optional]


(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)
Negative/exclusionary screening
Positive/best-in-class screening
Norms-based screening

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

Exclusionary policies, both on country as well as company basis, apply to all asset classes. For the credit portfolio an ESG screen is done before adopting a company into the portfolio.

04.3. Additional information. [Optional]


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?
Norms-based screening

06.2. Additional information. [Optional]


(C) Implementation: Integration

FI 10. Integration overview

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

A financial analysis is made of the potential investment. This analysis also contains a section on the ESG performance of the investment. These two factors together inform the decision of the portfoliomanager.

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

Corporate (financial)

The credit portfolio is managed by our fiduciary manager, SPF Beheer. SPF Beheer applies a special investment strategy on our internally managed credit portfolio. All of the bonds are chosen via a selective procedure. The investment decisions are not based on a predefined benchmark. Instead, the portfolio contains a limited number of bond issues. This number is sufficient for differentiation purposes, but not too big to run out of control. For every company a full financial screening is made. A paragraph on ESG risk is part of this screening. This paragraph contains an analysis of the ESG score of the company. The input is derived from an external research provider. The rationale behind the scoring, plus additional information, will be analysed by the analyst and recorded in the investment proposal. ESG risks can be a reason not to invest in a company.

The analysts responsible for the screening work for both the equity and FI portfolio. Additionally, there is a close cooperation between the FI and the equity team. Working knowledge on (ESG characteristics) of companies is shared between the teams.

Corporate (non-financial)

The credit portfolio is managed by our fiduciary manager, SPF Beheer. SPF Beheer applies a special investment strategy on our internally managed credit portfolio. All of the bonds are chosen via a selective procedure. The investment decisions are not based on a predefined benchmark. Instead, the portfolio contains a limited number of bond issues. This number is sufficient for differentiation purposes, but not too big to run out of control. For every company a full financial screening is made. A paragraph on ESG risk is part of this screening. This paragraph contains an analysis of the ESG score of the company. The input is derived from an external research provider. The rationale behind the scoring, plus additional information, will be analysed by the analyst and recorded in the investment proposal. ESG risks can be a reason not to invest in a company.

The analysts responsible for the screening work for both the equity and FI portfolio. Additionally, there is a close cooperation between the FI and the equity team. Working knowledge on (ESG characteristics) of companies is shared between the teams.

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
Corporate (financial)
Corporate (non-financial)
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]


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
Corporate (financial)

Environmental

Social

Governance

Corporate (non-financial)

Environmental

Social

Governance

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

Corporate (financial)

An SRI screening is made on every potential portfolio company. The SRI screening determines whether the company fulfils our requirements in the field of SRI. The screening is mainly based on information from an external research provider, combined with additional research by analysts at SPF Beheer.

Corporate (non-financial)

An SRI screening is made on every potential portfolio company. The SRI screening determines whether the company fulfils our requirements in the field of SRI. The screening is mainly based on information from an external research provider, combined with additional research by analysts at SPF Beheer.

12.3. Additional information.[OPTIONAL]


Top