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Kagiso Asset Management

PRI reporting framework 2020

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

実施プロセス

LEI 01. Percentage of each incorporation strategy

01.1. 以下を記載してください。(1)組織でのアクティブ運用上場株式にどのESG組み入れ戦略や組み合わせを使用しているか(2)アクティブ運用している上場株式の戦略または戦略の組み合わせ別内訳

ESG組み入れ戦略 (当てはまるものをすべてお選びください)
アクティブ運用される上場株式に戦略が適用される割合 (推定 +/- 5%)
100 %
アクティブ運用している上場株式の合計 100%

01.2. 組織が実施しているESG組み入れアプローチ、および、特定のESG組み入れ戦略を選択している場合はその理由を説明してください。

We believe that superior investment returns can be achieved by following a proven and effective investment process. We follow a bottom up process to harness our investment philosophy in a disciplined, yet flexible manner.

We make investment decisions based on mispricings we observe in the market. Simply put, we buy investments that are priced below our considered assessment of intrinsic value and avoid those that we believe are overpriced.

All investments represent a set of future cash flows, which can generally be valued with reasonable accuracy. Over time, this intrinsic value progresses at a fairly stable pace. Asset prices, however, fluctuate considerably through time. This is largely due to self-reinforcing cycles of investor enthusiasm or negativity, often fuelled by an excessive focus on near-term data and news flow.

Our aim is to identify and exploit mispricings in the markets. We therefore buy investments at prices well below our estimation of their intrinsic value and hold them while they deliver strong cash returns and until they can be sold above this value. Once sold, we avoid such overvalued investments for as long as the market price is above our estimate of its intrinsic value.

Our fundamental research is valuation-based, we take a medium to long term view on the companies we own and we adapt to prevailing market conditions. The focus of our fundamental research is redirected as conditions change and, therefore, is applicable in most market environments.

We recognise that there is considerable danger in operating with the comfort of a false sense of certainty and the accompanying behavioural reinforcement cycles that lead to a distorted evaluation of new information. As a result, we understand that despite our best efforts we cannot possibly know all the facts.

This drives us to think more deeply, to work harder and to be more alert. We view the future in terms of probabilities, we explore alternative scenarios, diversify our positions, hedge risk and seek out potential asymmetries.

ESG considerations are an important part of our overall investment process. ESG integration into the investment process includes quantitative analysis of material ESG factors and inclusion of those in the valuation process. Incorporating ESG is a dynamic process that often requires a different approach for each company. We therefore spend a lot of time understanding the specific ESG issues a company faces and how we can best incorporate it into our investment thesis.

Once we own a company we become active owners by voting responsibly and engaging with companies on material ESG risk factors that impact valuation where we can have the most impact for our clients.

01.3. ESG組み入れ戦略の組み合わせを使用して資産を運用している場合、ESG戦略の組み合わせをどのように使用しているかを簡単に説明してください。 [任意]

Our Islamic funds are managed in accordance with Sharia investment guidelines that have been established by the leading global Islamic institutions. This compliance means that companies that do not comply with Sharia law are removed as investment options and the remaining stocks are evaluated according to a series of financial ratio filters.

Our funds are mindful of the avoidance of interest or Riba. Riba is defined as a loan with the condition that the borrower will return to the lender more than and/or better than the quantity borrowed. Our funds are managed by a portfolio manager with extensive investment experience and they are supported by a highly respected Sharia Advisory and Supervisory Board.

This is applicable to 5% of our AUM.


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)


C) 実施: 統合

LEI 08. Review ESG issues while researching companies/sectors

08.1. E・S・Gの各要因が投資分析の一環として体系的に調査されている、アクティブ運用の上場株式ポートフォリオの割合を記載してください。

ESG問題

影響を受ける割合
E(環境)

E(環境)

S(社会)

S(社会)

コーポレートガバナンス

コーポレートガバナンス

08.2. 補足情報 [任意]

We have sector specific ESG scorecards and as such metrics for E and S differ as certain sectors would have different Environmental and Social intensities. Our scorecards are populated from reported data by companies and as such promote disclosure and performance monotoring on those metrics. We believe this is a superior method to modify behaviour and better disclosure practices on ESG issues.

Our Governance scorecard is universal across all sectors as corporate governance best practice is promoted across all sectors.

Our scorecards are updated annually as companies report and a detailed ESG report on the results of the scorecard and investee company performance over time and against peers are compiled by the covering analyst and updated, no investment recommendation is made without considering ESG issues.


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

09.1. ESG統合が徹底した分析に基づいていることを確実にするために、組織が使用しているプロセスを記載してください。

09.2. 組織の統合戦略の一環で包括的ESG調査の対象になるアクティブ運用上場株式の割合を記載してください。

09.3. ESG統合戦略に使われる第三者のESG評価が更新される頻度を示してください。

09.4. ESG統合戦略に使われる組織内調査を見直す頻度を示してください。

09.5. ポートフォリオ・マネージャーがどのようにしてESG情報を保有し、使っているのか説明してください。

09.6. 補足情報 [任意]

We have an automated proxy voting process with all details easily accessible to the entire investment team and this is quite useful for comparisons over time and to monitor effectiveness on engagment with companies on various issues related to proxy voting. We will be working to put our ESG voting record on our website over the next year and make it available to the public and current and potential clients.

Our ESG analytical tool is available to all relevant staff and all record are kept on our database.

We also developed an analytical tool to compare executive remuneration across companies and across sectors with a sell side broker using our brokerage on a bespoke basis.


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


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