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

Cardano Risk Management

PRI reporting framework 2020

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income

ESG incorporation in actively managed fixed income

Implementation processes

FI 01. Incorporation strategies applied

Indicate (1) Which ESG incorporation strategy and/or combination of strategies you apply to your actively managed fixed income investments; and (2) The proportion (+/- 5%) of your total actively managed fixed income investments each strategy applies to.
SSA
100 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%

01.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

Cardano mainly manages matching portfolios for our pension fund clients. The main objective is to do this as safely as possible with high-quality fixed income. In addition, this is done in house on a "passive unless" basis i.e. bonds are selected that most closely reflect the liability benchmark unless there is a reason to deviate for example for liquidity or pricing purposes. A large part of the investments is via Euro, UK and US government bonds. We acknowledges the impact that ESG factors have on investment outcomes in LDI. The above implies that an ESG approach based on selection is most suitable for the available investment universe. Responsible Investing impact is expected to be relatively light compared to other balance sheet items.

01.3. Additional information [Optional].


FI 02. ESG issues and issuer research (Private)


FI 03. Processes to ensure analysis is robust

03.1. Indicate how you ensure that your ESG research process is robust:

03.2. Describe how your ESG information or analysis is shared among your investment team.

03.3. Additional information. [Optional]


(A) Implementation: Screening

FI 04. Types of screening applied

04.1. Indicate the type of screening you conduct.

Select all that apply
SSA
Negative/exclusionary screening
Positive/best-in-class screening
Norms-based screening

04.2. Describe your approach to screening for internally managed active fixed income

Cardano has a passive unless investment strategy i.e. bonds are selected that most closely reflect the liability benchmark unless there is a reason to deviate for example for liquidity or pricing purposes. In the selection of new fixed income investments ESG is an important criterion. All candidate investments receive a number rating based on external ESG data. Investments that do not meet the minimum criteria are excluded.

04.3. Additional information. [Optional]


FI 05. Examples of ESG factors in screening process (Private)


FI 06. Screening - ensuring criteria are met

06.1. Indicate which systems your organisation has to ensure that fund screening criteria are not breached in fixed income investments.

Type of screening
Checks
Negative/exclusionary screening

other description

          We ensure that data used for the screening criteria is reviewed at the time of investment.
        
Norms-based screening

other description

          We ensure that data used for the screening criteria is reviewed at the time of investment.
        

06.2. Additional information. [Optional]


Top