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Quoniam Asset Management GmbH

PRI reporting framework 2019

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes » (A) Implementation: Screening

(A) Implementation: Screening

LEI 04. Types of screening applied

04.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by

Description

A negative screening on companies with activities in the production of controversial weapons is applied to all mandates.

A more advanced principles based screening is applied wherever mandated by customers, e.g. in the Quoniam Funds Selection SICAV, which follows internationally accepted guidelines such as the UN Global Compact, the Principles of Responsible Investment and the Oslo convention. In addition to the basic screening, this excludes companies with controversial practices or activities in areas such as human and labour rights, environment and climate change, corruption, and tobacco.

Clients may choose to to select other / additional screening criteria if they have additional needs (e.g. norms based). They may also choose to use negative lists provided by external service providers customers have selected independently.

Screened by

Description

Clients may choose to use specific positive (i.e. "white list") screening lists based on a variety of criteria. Such screens are typically provided by external service providers customers have selected independently.

Screened by

          Universal Declaration of Human Rights.
        

Description

Norms based screening is applied when it is mandated from customers, e.g. in the Quoniam Funds Selection SICAV, which follows internationally accepted norms.

04.2. Describe how you notify clients and/or beneficiaries when changes are made to your screening criteria.

Screening criteria are established by our SRI commitee, which analyses systematically the incormporation of screening criteria from both internal research in cooperation with external research providers. Screening lists are reviewed on a regular basis. We encourage clients to include information on these reviews in their customized reporting. See also answer LE02.1.

 


LEI 05. Processes to ensure screening is based on robust analysis

05.1. Indicate which processes your organisation uses to ensure screening is based on robust analysis.

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

05.3. Indicate how frequently third party ESG ratings are updated for screening purposes.

05.4. Indicate how frequently you review internal research that builds your ESG screens.

05.5. Additional information. [Optional]

In a first stage, Quoniam systematic analysis incorporates  ESG data from MSCI ESG Research and also incorporate the  capabilities from a dedicated ESG team of our parent company, Union Investment , who compiles and validates data from various research providers such as MSCI, Reprisk,Trucost and the world Bank and links them to the capital market data structures of five asset classes.

In a second stage, this data, which covers 32,000 securities, 14,000 issuers, 8000 companies and 104 countries is automatically imported in our data base.

In a third stage a validation process starts. In this stage, after we validate the data quality, we incorporate our in-house research and other external sources e.g. the exclusion list published by the Norwegian government fund.  

In a fourth stage, we formally incorporate systematically the ESG/Responsible investment policy of our clients applying either positive/exclusionary lists or ESG factors in the investment process. If the exclusions lists are applied to reduce the individual universe of each fund, then the automated investment process can only choose equities from the reduced fund's universe. Further, these lists are part of the daily investment monitoring process. This includes an analysis of the complete company structure, which reflects corporate actions such as mergers and acquisitions.

In the last stage, the negative, positive and norm-based ESG lists applied in the portfolio management process also feed into the audit system from Princeton (MIG 21). Therefore changes to the lists will lead to passive ESG guideline breaches and trigger appropriate guideline conform actions in portfolio management.


LEI 06. Processes to ensure fund criteria are not breached (Private)


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