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Alphinity Investment Management Limited

PRI reporting framework 2020

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


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%)
95 %
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%)
5 %
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。

The mix determined by client preferences; they choose from four products we offer. To this point, most have chosen the funds which integrate ESG rather than screening. 

The screened fund, the Sustainable Share Fund,  uses the UN Sustainable Development Goals as part of the investment process, in addition to screening out activities and seeking strong ESG performance

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]

The portfolios without a Sustainable remit (ie unconstrained general equity funds) utilise ESG in assessing the fundamental value of the company and teh risks/opportunities it faces. This might include specific financial impacts, a risk adjustment to valuation methodologies, or a blanket exclusion based on risk or sustainability.

LEI 02. Type of ESG information used in investment decision

02.1. 組織でESG組み入れ戦略に使用しているESG情報およびこの情報の提供者を記載してください。






02.2. ブローカーに対しESG調査結果を提供するよう奨励しているかどうかについて記載してください。

02.3. ブローカーに対しどのように奨励しているかを記載してください。

We allocate a meaningful amount of commission to brokers providing ESG research (according to quality) to encourage greater efforts and will pay additional commission for bespoke work or instances of excellence

02.4. 補足情報 [任意]

LEI 03. Information from engagement and/or voting used in investment decision-making

03.1. ESGへのエンゲージメントや(委任状による)議決権行使から得られる情報を投資の意思決定に利用できるプロセスが組織にあるかどうかを記載してください。

03.2. 補足情報 [任意]

This item seems to be directed at large organisations with separation between the engagement/proxy process and investment decision making. In our case all engagement and proxy voting is initiated by the PMs themselves so all are aware of the information involved and no formal process for sharing that information is required.

When advising institutional clients who exercise their own proxies on how to vote, the information is provided systematically. 

A) 実施:スクリーニング

LEI 04. Types of screening applied

04.1. 組織内でアクティブ運用している上場株式に適用するスクリーニングの種類を記載し、説明してください。




For the Sustainable Share portfolios only - other Funds are not screened other than for companies with serious governance concerns



For the Sustainable Share Fund only - other Funds are not formally screened

We do not screen for best in class, purely for positive ESG and the ability to address one or more of the SDGs. 

04.2. スクリーニング基準が変更された場合に顧客や受益者に通知する方法について説明してください。

Negative screens are mandated by the Fund's Responsible Entity. Should they change, as happened in 2018 when the fund adopted SDGs, a consultation and notification process was followed as required by the governance structure ofthe Fund. Efforts over and above that are determined by the investment the team as information comes to hand, including using an external data provider to monitor sustainability ratings of all companies in our investable universe.

Positive screen: the team seeks out companies which have a particularly positive impact on E, S, G and/or the ability to address and support achievement of Sustainable Development Goals.

For the Funds without the negative screen, stocks are often excluded from consideration based on specific factors relevant to that stock, for instance a shareholding structure not conducive to good governance (ie dominated by an individual and therefore effectively a private company), poor governance practices (ie we need to vote against directors or remuneration structures consistently, with no result from engagement), poor environmental performance or particularly egregious social impact (for example payday lenders). 

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

05.1. スクリーニング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選択してください。

05.2. ESGスクリーニング戦略の一環で包括的なESG調査の対象となるアクティブ上場株式ポートフォリオの割合を示してください。

05.3. 第三者のESG評価がスクリーニング目的で更新される頻度を示してください。

05.4. 組織のESGスクリーニングを構築するための組織内リサーチを精査する頻度を示してください。

05.5. 補足情報 [任意]

The Sustainable Share Fund is also assessed monthly by a committee containing two external experts in sustainability 

LEI 06. Processes to ensure fund criteria are not breached

06.1. ファンドの基準に違反がないことを確認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。

06.2. ファンドのスクリーニング基準に対する違反が判明した場合、これらの違反を是正するために従うプロセスを説明してください。

Our portfolio management system is pre-loaded with the securities which would breach fund restrictions and will block any trade from being approved that would breach the screens. But if a breach were ever to occur the process would be to rectify it immediately to bring the Fund back into compliance with the rules, and then follow the normal incident/breach procedure of working out how the breach occurred and rectify systems/practices to ensure that it cannot reoccur. 

06.3. 補足情報 [任意]

B) 実施:テーマ

LEI 07. Types of sustainability thematic funds/mandates

07.1. 組織が運用している、サステナビリティをテーマとするファンドやマンデートの種類を記載してください。

07.2. 組織でのサステナビリティをテーマとしたファンドのプロセスについて説明してください。 [任意]

We manage unconstrained equity mandates and Sustainable Share mandates. The client determines which strategy best suits its needs

Alphinity is committed to Responsible Investing across all its activities but Sustainable Investing goes several steps further.

We are committed to supporting those companies we believe do good and avoiding those we believe don’t. By "good" we mean those that help to advance, in a net way, one or more of the Sustainable Development Goals. We seek companies which, along with offering attractive financial returns, rank well on ESG metrics and/or have the capacity to make a positive impact on society in areas of economic, environmental and social development by contributing towards the advancement of the UN SDG agenda, as that agenda evolves.

We avoid companies that are involved in activities we consider harmful to society and are inconsistent with the achievement of the Goals, and/or display poor practices in their management of ESG issues.

Using Alphinity’s investment philosophy and process, we combine Fundamental and Quantitative research to assess stocks to ensure that they are quality, undervalued companies in or about to enter an earnings upgrade cycle.

The result is a balanced portfolio of 35-55 companies with attractive investment fundamentals and prospects. We do not identify with any particular investment ‘style’ as our approach has proven successful through a number of different market cycles, although our process will typically have a slight bias towards growth.

The Alphinity Sustainable Share Fund has a Compliance Committee which meets at least monthly and includes the Portfolio Managers and two high;y-qualified independent sustainability experts. The Committee’s role is to rigorously review the investable universe to ensure compliance with the Charter; adjudicate on “grey areas”; refine the Fund’s Charter and filters as the SDGs evolve; help identify areas of company engagement; and review the external service providers used.

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。








08.2. 補足情報 [任意]

E, S and G issues are considered for all funds but applied most stringently in the Sustainable Share Fund. For unconstrained Funds, considering ESG forms part of the normal research process as there is the potential for these factors to have significant positive or negative impact on value. The degree of stringency for each factor is determined by the nature of the company, although governance is a key consideration for all companies.

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。

          External consultants with deep knowledge of and expertise in Sustainability

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 engage extensively with investee companies about all issues, including ESG as this is a part of our normal investment analysis. Where there are material concerns, companies are given the opportunity to respond and there have been instances of improved practices taking place as a result of raising concerns about non-compliance or inadequate reporting.

We do not produce research notes or record routine processes but do keep a database of relevant insights and interactions

LEI 10. Aspects of analysis ESG information is integrated into


10.1. 投資分析のどの側面にESG情報を統合しているかを記載してください。






10.2. ESG情報を適正価値/ファンダメンタル分析および/またはポートフォリオの構築へと統合するプロセスについて、組織でのプロセスの一部となっている手法を選択してください。

          in some cases, blanket rejection of companies with inadequate controls or risks that are large and/or not being addressed

10.4. 利益予想/バリュエーションツールの修正に使用した手法を説明してください。

The method used depends on the nature of the issue involved.

For example, in the case of a potentially stranded asset like a coal mine we would take a pessimistic view of the potential life of the mine and bring forward clean-up costs.

In the case of a company with adverse social impacts or poor corporate governance we would rather tend to increase the discount rate or adjust our valuation to reflect the increased risk our to which investors are being exposed.

In the case of a company with poor governance or critical issues that are not being addressed we would tend to avoid exposure altogether

10.5. 有価証券の評価に感応度/シナリオ分析をどのように適用しているか説明してください。

When assessing key value drivers of a company we arrive at a base case, i.e. what we expect to happen, but then typically flex those drivers through a range of potential outcomes in order to see what might happen should things not go according to our expectations. This is an important factor in being aware of what could go wrong (or right) that changes our williness to accept risk.

10.6. 補足情報 [任意]