For SSAs, we have developed our own methodology based on several different publicly available indicators of countries and governments. With them, we compute a propitery weighted score. After ranking each country based on its score, we have established three levels: fully complying countries will be part of our investment universe and are assigned a level 1. Countries missing at most 1 requirement will be included a level 2. Finally, countries missing more than one requirement are given a level 3.
There are no further investment limitations than the legal ones (percentage weight of total portfolio) for Level 1 countries. In order to be conservative, we have established a limit of up to 3% of the fixed income portfolio for Level 2 countries. These companies will have a limitation to represent as a whole a 20% of the fixed income portfolio.