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Fred Alger Management, LLC

PRI reporting framework 2019

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes

Implementation processes

LEI 01. Percentage of each incorporation strategy

01.1. Indicate (1) which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities and (2) the breakdown of your actively managed listed equities by strategy or combination of strategies (+/- 5%)

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied (+/- 5%)
100 %
Total actively managed listed equities 200%

01.2. Describe your organisation’s approach to incorporation and the reasons for choosing the particular ESG incorporation strategy/strategies.

We have a dedicated ESG fund (Alger Responsible Investing Fund), which incorporates ESG ratings as part of the investment process. In this connection, we have started to provide our analysts with ESG ratings on individual securities to aid them in their discussion with the portfolio manager of this Fund. 

01.3. If assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]


LEI 02. Type of ESG information used in investment decision (Private)


LEI 03. Information from engagement and/or voting used in investment decision-making (Private)


(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

The Alger SRI Capital Appreciation strategy utilizes negative/exlcusionary screening. The importance of ESG criteria is directly related to the restrictions or requests made within the client’s investment management agreement. Alger uses MSCI ESG Research, whose products and services are designed to provide in-depth research, ratings and analysis of environmental, social and governance-related business practices, for pre-screening based on the following categories: Alcohol, Abortion/Contraceptives, Defense & Weapons, Gambling, Global Sanctions, Global Sanction – Sudan Specific, Nuclear Power, Pork, Tobacco, Global Weapons Production, Global Weapons – Cluster Bomb Specific, Adult Entertainment, Labor Relations and OFAC. On a continuous basis, MSCI ESG research provides Alger’s Portfolio Administration Team with a listing of securities currently restricted.

Screened by

Description

For the Alger Responsible Investing Fund, we employ fundamental analysis to identify innovative and dynamic companies using MSCI's ESG ratings to consider how such stocks within an industry or sector based on a company's conduct in offering products or services that promote positive environmental, social and/or governance policies, or have a positive impact in these areas, addressing concerns such as climate change, resource depletion, health and safety, employee relations and diversity, bribery and corruption, and fostering board diversity and structure. 

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

Any changes to the Fund's screening would be detailed in the prospectus, which is publically available to clients via www.alger.com.


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.

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

05.5. Additional information. [Optional]

If there is any update (i.e. company event) to an ESG security, that change is immediately reflected in the model contained in our research storage database, which is available to all investment team members. At a minimum, the model is also reviewed annually. 


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


(B) Implementation: Thematic

LEI 07. Types of sustainability thematic funds/mandates

07.1. Indicate the type of sustainability thematic funds or mandates your organisation manages.

07.2. Describe your organisation’s processes relating to sustainability themed funds. [Optional]

Alger uses MSCI ESG Research, whose products and services are designed to provide in-depth research, ratings and analysis of environmental, social and governance-related business practices, for pre-screening based on the following categories: Alcohol, Abortion/Contraceptives, Defense & Weapons, Gambling, Global Sanctions, Global Sanction – Sudan Specific, Nuclear Power, Pork, Tobacco, Global Weapons Production, Global Weapons – Cluster Bomb Specific, Adult Entertainment, Labor Relations and OFAC.  

Currently, Alger offers the Alger Responsible Investing Fund, which primarily invests in growth equity securities of U.S. companies identified through our fundamental research as demonstrating promising growth potential and rated as having positive environmental, social, or governance practices. ESG criteria are an integral component of portfolio construction in the Fund. 


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