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Metzler Asset Management GmbH

PRI reporting framework 2019

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You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » (A) Implementation: Screening

(A) Implementation: Screening

FI 04. Types of screening applied

04.1. Indicate the type of screening you conduct.

Select all that apply
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

For all corporate-bond investments, exclusionary screening is applied based on 120 international norms and conventions. The data stems mostly from MSCI ESG Research. In cases of "very severe controversies", i.e. serious infringements of these standards, companies are excluded from our investment universe.
Upon client request, we also take other aspects into account in the investment process, such as negative/best-in-class screenings drawn from data provided by ISS-oekom. 

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
Negative/exclusionary screening?
Positive/best-in-class screening
Norms-based screening

06.2. Additional information. [Optional]

The Fund Risk Controlling department is implementing and controlling client-specific, contractual, legal and internal restrictions. There are ex-post as well as ex-ante controlling processes.
With MIG21 (GX Compliance) we possess an automatic controlling system to check the compliance of legal, contractual, client specific and internal restrictions. Such controlling is carried out ex ante that means before the order for the particular mandate is placed in the market by the Trading Desk. In addition, we conduct a daily ex-post compliance check of our holdings with the applicable restrictions. Therefore, it is nearly impossible, that violations of investment guidelines occur. If violations occur, they will be displayed to portfolio management automatically via MIG21 (GX Compliance). The portfolio manager is obliged to comment on any guideline breaches and to take immediate action to correct the violation. In case of breaches of contractual constraints due to market movements, we discuss with the client how to proceed, keeping the best interest of our clients in mind. Fund Risk Controlling is monitoring this process.
Depending on the significance of the breaches, managing directors are informed as well. Our escalation procedures are clearly defined within our organizational handbook.