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Quoniam Asset Management GmbH

PRI reporting framework 2019

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » Implementation processes

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.
Corporate (financial)
0 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
45 Screening + thematic strategies
1 All three strategies combined
54 No incorporation strategies applied
100%
Corporate (non-financial)
0 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
52 Screening + thematic strategies
0 All three strategies combined
48 No incorporation strategies applied
100%

01.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

The full incorporation strategy, as  implemented e.g. in the Quoniam Funds Selection SICAV, follows internationally accepted guidelines and builds on 3 pillars listed below (in segregated accounts, Quoniam may not be mandated to execute all dimensions):

1. Thematic themes: we take into account the legal and regulatory requirements associated with:

-UN Global Compact
-EFAMA Code of External Governance
-Oslo Convention on Cluster Munitions
-PRI
-BVI-Code of Conduct
-BVI-Responsible Investment Policy
-OFAC sanction list

2. Screening – Quoniam's sustainable investment policy exclude securities according to the following criteria, which identifies controversial business practices and controversial business activtities:

Norges Bank exlusion list (Norwegian government pension fund exclusion list)
Producers of cluster munitions and anti-personnel landmines
Violation of labour standards (ILO)
Violation of human rights
Environmental pollution scandals
Corruption
Tobacco
Additional mandate specific negative or positive screening criteria/lists

We are open to discuss additional screenings, as already employed in the context of existing mandates.

3. Integration - includes the systematic application of KPIs in our investment universe

Environment;
Social
Governance
other KPIs i.e sustainable business, carbon and environmental footprint etc.

01.3. Additional information [Optional].

Screening techniques aim to avoid controverial business practices and controversial activities, filtering out companies affected altogether:

Business practices include companies which violate human rights or carry out systematic violations against labour rights, companies which caused environmental harm or are convicted to corruption.
Controversial business activities comprise the production of controversial weapons, such as anti-personnel mines and cluster munitions or tobacco.

Integration of ESG KPIs

Standardized KPIs on environmental, social and government metrics are used during portfolio construction to "shift" the portfolio towards better ESG characteristics.
The objective is to achieve a superior ESG performance at the portfolio level (not at the single asset level), while not compromising on main objectives such as an optimal return/risk profile.
ESG exposure is used as a risk factor, not a return generator.

 

 

 


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:

specify description

          ESG screening lists are regularly updated and integrated in investment guideline audit systems.
        

03.2. Describe how your ESG information or analysis is shared among your investment team.

03.3. Additional information. [Optional]

Since last year we have incorporated the sustainability dimension in our monthly performance review in order to discuss the current exposure to key ESG issues and how we can improve the investment process regarding ESG themes.


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