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Lazard Frères Gestion

PRI reporting framework 2019

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

At Lazard Frères Gestion, we strongly believe that the sustainability of an issuer’s economic performance hinges on environmental, social and governance (ESG) factors.

The long-term performance of investments does not simply consider financial strategy; it must also respect the interaction between the company and its social, economic and financial environment.

Our global approach can be summarised as follows :

  • In-depth corporate financial analysis, covering the quality of assets, financial strength, cash flow forecasts and reinvestment by the company, economic profitability momentum and sustainability, and the quality of the management.
  • This sustainability assessment is backed by an appraisal of extra-financial criteria :
    • Social criteria, through the valuation of human capital
    • Environmental criteria, prevention of environmental risks
    • Governance criteria, by respecting the balance between management and shareholder structures to prevent potential conflicts of interest and ensure the respect of minority shareholder interests

 

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

At Lazard Frères Gestion we believe that actively addressing environmental, social and corporate governance (ESG) considerations is essential for the sustainability of any company’s economic performance. This is why ESG criteria are naturally embedded into our investment process. 

Our responsible investment policy covers our different investment strategies, equities, convertible bonds and fixed income. 

The extent of, and approaches to, ESG integration can vary depending on the asset class and investment process. Our goal is always to gain a greater understanding of ESG risks that could have a material effect on a company valuation or a sovereign asset.

01.6. Additional information [Optional].

          
        
I confirm I have read and understood the Accountability tab for SG 01 I confirm I have read and understood the Accountability tab for SG 01

SG 01 CC. Climate risk (Not Applicable)


SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

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02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Additional information [Optional].


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Lazard Frères Gestion applies the relevant regulations in formulating its provisions for preventing and managing conflicts of interest and it includes measures at organisation level as well as administrative procedures to address and control operations aimed at preventing the various types of conflict of interest.

Lazard Frères Gestion has put permanent control provisions in place to safeguard procedures to pre-empt conflicts of interest and to detect any conflicts of interest that arise despite the preventative measures, and with a view to resolving them fairly.

Lazard Frères Gestion checks that staff uphold the professional obligations to which the company is subject when carrying out its business and that this business is carried out in full compliance with the relevant regulatory provisions. As such, organisation related measures and procedural guidelines have been put in place to pre-empt the risk of any conflicts of interest situations arising.

The Head of Compliance and Internal Control regularly reviews all situations that could generate conflicts of interest.

The Head of Compliance and Internal Control ensures all relevant information is stored, monitored, and maintained by mapping conflicts of interest.

03.3. Additional information. [Optional]

Our actions aim at:

- Preventing the various types of conflict of interest.
- Establishing and maintaining an appropriate conflict of interest management policy.
- Identifying situations that generate or could generate conflicts of interest.
- Keeping and updating a register of activities that have generated or could generate conflicts of interest.
- Identifying preventative measures as well as an appropriate framework to avoid all conflicts of interest or if not possible then to contain any conflicts of interest that do arise.
- Informing clients and soliciting their decision when for any particular transaction the measures being implemented cannot reasonably guarantee that the risk of damaging the client’s interest will be avoided.

If, despite all possible precautions being taken, unavoidable conflict of interest situations arise that could damage client interests, Lazard Frères Gestion procedures intend for suitable measures be sought and put in place by Lazard Frères Gestion management with support from the Head of Compliance and Internal Control and any other relevant department. If the measures implemented cannot be reasonably certain to guarantee that client interests will be protected, Lazard Frères Gestion writes to inform the client of the nature and/or source of the conflict of interest so that the client can subsequently make a fully informed decision.


SG 04. Identifying incidents occurring within portfolios (Private)


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