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J O Hambro Capital Management Group

PRI reporting framework 2020

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

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%
20 %
Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
80 %
Total actively managed listed equities 100%

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

Each of JOHCM's investment strategies is autonomous. There is no central approach to investment or to ESG issues. Some of our strategies adopt a thematic approach and exclude, for instance, all tobacco, alcohol, armaments, gambling and pornography companies. Others adopt an integrated approach, addressing the specifics of the companies in which they invest, across all sectors.

We have a firm wide restriction on investment in cluster munitions.

We believe this is the best way to achieve an outcome which is to our clients' material benefit.

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 (Private)


(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

We implemented a general exclusion policy that puts a block list in to our order management system (Bloomberg AIM) forbidding any JOHCM funds from investing in companies involved in the manufacture of cluster bombs. The exclusion list is based on the MSCI ESG Ratings screening tool.

Some of our strategies adopt a thematic approach and exclude, for instance, all tobacco, alcohol, armaments, fossil fuels, gambling and pornography companies. Others adopt an integrated approach, addressing the specifics of the companies in which they invest, across all sectors.

 

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

Our Client Services team has direct access to the investment teams and update our client base, on a regular basis, with key news and information from the investment teams.


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.

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

05.5. Additional information. [Optional]

ESG analysis is integrated in investment analysis.  In addition, the fund managers and the Investment Director use ISS ESG research to assist in the proxy voting process and use MSCI ESG Ratings research to monitor ESG issues.


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]

We do not run any sustainability themed funds.

ESG factors are integrated into investment analysis and decision-making. This means that they are considered by fund managers in the same context as other risks and opportunities, all of which contribute to investment judgement.


(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]

More accurately, we often review the significance of governance issues for companies which we believe could enhance value by doing more or doing things differently.


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.

          Engagement initiatives are discussed with the Investment Director.
        

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

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

09.6. Additional information. [Optional]

​ESG information is held within centralised databases managed by the Risk team.


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


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