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

Hwabao WP Fund Management Co., Ltd

PRI reporting framework 2020

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

ESG incorporation in actively managed listed equities

Implementation processes

LEI 01. Percentage of each incorporation strategy

01.1. Indicate which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities; and the breakdown of your actively managed listed equities by strategy or combination of strategies.

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
90 %
Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
10 %
Total actively managed listed equities 300%

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

For some specific ESG fund products, we are using a combination strategy including screening, thematic and integration. We have issued three green thematic funds and these funds are dedicated to invest in those companies with good "green" performance. In terms of good "green" performance, it indicates those companies whose main business could either reduce the pollution, remedy the environment or promote the environment protection. After screening out those companies, we will form a green theme stock pool and the portfolio manager will select stocks from this pool to construct their portfolio. After the investment decisions are made, a negative screening will be conducted regularly. And if a negative incident happended to a listed company, we will judge the seriousness of the influence and make a decision to lower the weight or even reject the firm from the pool. And for the other funds, we are using screening only to monitor the negative incidents. 

Therefore, the ESG incorporation strategy we implement includes screening, thematic and integration. We believe the strategy could assist us to screen out those companies with long term competitive advantages and sustainability. And it could also help us to reduce the risk of black swan event. 

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 (Not Completed)


(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

One of the main screening types we use is negative screening. This screening method is used for all our active managed mutual funds and will be implemented before and after the investment decision is made. While analyzing a company, the past negative news would be investigated since we don't want to invest in those companies that are at high risk. And after an investment decision is made, the post monitoring process will be followed as a weekly task. If any negative incidents happened to the company, the analyst would analyze the influence and make some prejudgments. If we consider it as a very serious problem and would cause a significant impact, the stock would be removed.

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

All of the criteria would be published on our official website. If there are any changes to the criteria, the alternation would be also published on the website.


LEI 05. Processes to ensure screening is based on robust analysis

05.1. Indicate which processes your organisation uses to ensure ESG screening is based on robust analysis.

05.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your ESG screening strategy.

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

05.4. Indicate how frequently you review internal research that builds your ESG screens.

05.5. Additional information. [Optional]


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]


(C) Implementation: Integration of ESG factors

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate the proportion of actively managed listed equity portfolios where E, S and G factors are systematically researched as part of your investment analysis.

ESG issues

Proportion impacted by analysis
Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]


LEI 09. Processes to ensure integration is based on robust analysis

09.1. Indicate which processes your organisation uses to ensure ESG integration is based on robust analysis.

09.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your integration strategy.

09.3. Indicate how frequently third party ESG ratings that inform your ESG integration strategy are updated.

09.4. Indicate how frequently you review internal research that builds your ESG integration strategy.

09.5. Describe how ESG information is held and used by your portfolio managers.

09.6. Additional information. [Optional]


LEI 10. Aspects of analysis ESG information is integrated into (Private)


Top