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

Catella Fondförvaltning AB

PRI reporting framework 2019

Export Public Responses
Pdf-img

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

(C) Implementation: Integration

FI 10. Integration overview

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

Generally speaking, we look for companies that are both driven by sustainability and can demonstrate attractive financial qualities and a clear profit and return trend that is underestimated by the market. We use the UN 2030 Agenda for Sustainable Development as a basis for identifying business models that can benefit structurally by offering a solution to one or more of the 17 Agenda 2030 Goals. We have identified four themes that we believe are potential sources of structural growth and profitability for companies exposed to these themes.

In our view there are a potential hidden risk for companies that don´t handle ESG risks properly. This is especially true for our fixed income investments where the asymmetric return profile obviously turns our attention to the downside. Negative screening is one way to avoid sectors that are more risky from an ESG standpoint. Qualitative analysis of the companies, meeting with the management and discussing relevant risks and opportunities in the companies, beyond the financial statements is an important part of our investment process.

Last but not least, we study the extent to which company financial statements are affected by sustainability. We enhance our understanding of the long-term potential and risks of the business model by integrating sustainability with financial analysis.

In addition to our own assessment of sustainability as a driver of WHAT a company does, we use ESG research from Sustainalytics* as a basis for evaluating HOW companies, regardless of whether they have sustainability profiles, are dealing with their ESG challenges.

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

Corporate (financial)

Generally speaking, we look for companies that are both driven by sustainability and can demonstrate attractive financial qualities and a clear profit and return trend that is underestimated by the market. We use the UN 2030 Agenda for Sustainable Development as a basis for identifying business models that can benefit structurally by offering a solution to one or more of the 17 Agenda 2030 Goals. We have identified four themes that we believe are potential sources of structural growth and profitability for companies exposed to these themes.

In our view there are a potential hidden risk for companies that don´t handle ESG risks properly. This is especially true for our fixed income investments where the asymmetric return profile obviously turns our attention to the downside. Negative screening is one way to avoid sectors that are more risky from an ESG standpoint. Qualitative analysis of the companies, meeting with the management and discussing relevant risks and opportunities in the companies, beyond the financial statements is an important part of our investment process.

Last but not least, we study the extent to which company financial statements are affected by sustainability. We enhance our understanding of the long-term potential and risks of the business model by integrating sustainability with financial analysis.

In addition to our own assessment of sustainability as a driver of WHAT a company does, we use ESG research from Sustainalytics* as a basis for evaluating HOW companies, regardless of whether they have sustainability profiles, are dealing with their ESG challenges.

Corporate (non-financial)

Generally speaking, we look for companies that are both driven by sustainability and can demonstrate attractive financial qualities and a clear profit and return trend that is underestimated by the market. We use the UN 2030 Agenda for Sustainable Development as a basis for identifying business models that can benefit structurally by offering a solution to one or more of the 17 Agenda 2030 Goals. We have identified four themes that we believe are potential sources of structural growth and profitability for companies exposed to these themes.

In our view there are a potential hidden risk for companies that don´t handle ESG risks properly. This is especially true for our fixed income investments where the asymmetric return profile obviously turns our attention to the downside. Negative screening is one way to avoid sectors that are more risky from an ESG standpoint. Qualitative analysis of the companies, meeting with the management and discussing relevant risks and opportunities in the companies, beyond the financial statements is an important part of our investment process.

Last but not least, we study the extent to which company financial statements are affected by sustainability. We enhance our understanding of the long-term potential and risks of the business model by integrating sustainability with financial analysis.

In addition to our own assessment of sustainability as a driver of WHAT a company does, we use ESG research from Sustainalytics* as a basis for evaluating HOW companies, regardless of whether they have sustainability profiles, are dealing with their ESG challenges.

10.3. Additional information [OPTIONAL]

Generally speaking, we look for companies that are both driven by sustainability and can demonstrate attractive financial qualities and a clear profit and return trend that is underestimated by the market. We use the UN 2030 Agenda for Sustainable Development as a basis for identifying business models that can benefit structurally by offering a solution to one or more of the 17 Agenda 2030 Goals. We have identified four themes that we believe are potential sources of structural growth and profitability for companies exposed to these themes.

In our view there are a potential hidden risk for companies that don´t handle ESG risks properly. This is especially true for our fixed income investments where the asymmetric return profile obviously turns our attention to the downside. Negative screening is one way to avoid sectors that are more risky from an ESG standpoint. Qualitative analysis of the companies, meeting with the management and discussing relevant risks and opportunities in the companies, beyond the financial statements is an important part of our investment process.

Last but not least, we study the extent to which company financial statements are affected by sustainability. We enhance our understanding of the long-term potential and risks of the business model by integrating sustainability with financial analysis.

In addition to our own assessment of sustainability as a driver of WHAT a company does, we use ESG research from Sustainalytics* as a basis for evaluating HOW companies, regardless of whether they have sustainability profiles, are dealing with their ESG challenges.


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)

Generally speaking, we look for companies that are both driven by sustainability and can demonstrate attractive financial qualities and a clear profit and return trend that is underestimated by the market. We use the UN 2030 Agenda for Sustainable Development as a basis for identifying business models that can benefit structurally by offering a solution to one or more of the 17 Agenda 2030 Goals. We have identified four themes that we believe are potential sources of structural growth and profitability for companies exposed to these themes. Last but not least, we study the extent to which company financial statements are affected by sustainability. We enhance our understanding of the long-term potential of the business model by integrating sustainability with financial analysis.

In addition to our own assessment of sustainability as a driver of WHAT a company does, we use ESG research from Sustainalytics* as a basis for evaluating HOW companies, regardless of whether they have sustainability profiles, are dealing with their ESG challenges.

We invest in green bonds and look to increase the exposure to these at a reasonable price.

Corporate (non-financial)

Generally speaking, we look for companies that are both driven by sustainability and can demonstrate attractive financial qualities and a clear profit and return trend that is underestimated by the market. We use the UN 2030 Agenda for Sustainable Development as a basis for identifying business models that can benefit structurally by offering a solution to one or more of the 17 Agenda 2030 Goals. We have identified four themes that we believe are potential sources of structural growth and profitability for companies exposed to these themes. Last but not least, we study the extent to which company financial statements are affected by sustainability. We enhance our understanding of the long-term potential of the business model by integrating sustainability with financial analysis.

In addition to our own assessment of sustainability as a driver of WHAT a company does, we use ESG research from Sustainalytics* as a basis for evaluating HOW companies, regardless of whether they have sustainability profiles, are dealing with their ESG challenges.

We invest in green bonds and look to increase the exposure to these at a reasonable price.

12.3. Additional information.[OPTIONAL]


Top