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Optimum Asset Management Inc

PRI reporting framework 2020

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

アクティブ運用している債券におけるESGの組み入れ

実施プロセス

FI 01. Incorporation strategies applied

以下を記載してください。 (1)組織でアクティブ運用する債券投資について、どのESG組み入れ戦略や組み合わせを使用しているか(2)各戦略が適用されるアクティブ運用債券投資合計の割合(+/- 5%)
SSA
0 スクリーニングのみ
0 テーマのみ
0 統合のみ
0 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
100 3つの戦略すべての組み合わせ
0 組み入れ戦略を適用していない
100%
社債(金融)
0 スクリーニングのみ
0 テーマのみ
0 統合のみ
0 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
100 3つの戦略すべての組み合わせ
0 組み入れ戦略を適用していない
100%
社債(非金融)
0 スクリーニングのみ
0 テーマのみ
0 統合のみ
0 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
100 3つの戦略すべての組み合わせ
0 組み入れ戦略を適用していない
100%

01.2. 特定のESG組み入れ戦略を選択している理由と、使用する戦略の組み合わせを説明してください。

Screening: negative/exclusion of companies with 25 % of revenues from coal power plants, 10 % of revenues from tobacco and weapons, antipersonnel mines, biological or chemical weapons in contravention of international humanitarian law.

Thematic: to integrate positive impact to the portfolios. When risk\return is aligned with our clients’ objectives and investments policies, we invest in bonds that are aligned with 17 Sustainable Development Goals set by the United Nations.

Integration: ESG scores, on a scale of 0 to 10, for Canadian corporate issuers from external providers, Groupe Investissement Responsable. Each security has an Environmental, social, Governance and an ESG rating with detailed analysis of ESG characteristics. The ratings below 3 are reviewed in-house. Our internal real-time front-office system provides ESG data by client portfolios. It provides a rating per issuer, sector and overall. Those ratings are compared with the benchmark.

We use a combination of those 3 strategies to optimized because we tough it was best way attain OGP’s and our client’s responsible investment objectives. We discard investment that are not aligned with our values with our screening, we aimed at having positive impact with our thematic investments and we invest in issuers with best practices through ESG integration.

01.3. 補足情報 [任意]

Optimum Asset Management is of the view that responsible investment leads to better long-term results, which is in line with our investment values and philosophy. Our managers seek companies with long-term profitability and as a result, they manage financial and non-financial risks proactively. The intention is to make a constructive contribution to the success, sound governance and reputational risk management of companies with the view of optimizing their financial performance and the preservation of investors' capital.

Optimum Asset Management wants the companies which it invests in for its clients to behave as good corporate citizens in the environments where they operate, namely to act responsibly and to take part in the economic and social life of their communities.

Our philosophy of excellence prompted us to mandate Groupe Investissement Responsable (GIR) to conduct a comprehensive review of our processes and to prepare an audit report on responsible investment practices. The audit also allows us to compare our practices with industry best practices. GIR confirmed that it obtained the necessary information to produce the certificate, and its report concludes that:

  • Optimum Asset Management has put in place all the practices necessary to meet its responsible investment commitments;
  • Optimum Asset Management's initiative is based on a hybrid approach that is both comprehensive and product-specific; it combines systematic incorporation of ESG risks with the production of internal ratings, normative and sectoral exclusions, and mechanisms for dialogue and active management of voting rights; and
  • Optimum Asset Management is engaged in a process of continuous improvement for its responsible investment practices in order to exceed its commitments.

FI 02. ESG issues and issuer research (Private)


FI 03. Processes to ensure analysis is robust

03.1. 組織のESG調査プロセスの堅牢性を確保する方法を記載してください。

具体的に記載してください

          Issuers’ real-time ESG ratings in our front office system are compared with the corresponding benchmark
        

03.2. ESG情報または分析を投資チーム内で共有する方法を記載してください。

          Issuers’ real-time ESG ratings in our front office system are compared with the corresponding benchmark
        

03.3. 補足情報 [任意]


A) 実施:スクリーニング

FI 04. Types of screening applied

04.1. 実施するスクリーニングの種類を記載してください。

当てはまる項目を全てを選択してください
SSA
社債(金融)
社債(非金融)
ネガティブ/ 排他的スクリーニング
ポジティブ/業界最高のスクリーニング
基準に基づくスクリーニング

04.2. 組織内でアクティブ運用している債券に適用するスクリーニングのアプローチを記載してください。

We have retained the services of Groupe Investissement Responsable (GIR) to provide an ESG rating for corporate issuers on the basis of four scores: environmental, social, governance and overall ESG. The weightings and justifications are detailed. The scores range from 0 to 10, with 10 being the highest score. The weighting of environmental, social and governance factors is defined by the issuer's sector of activity. For example, the environmental weighting, at 45%, is greater in the energy sector, whereas the social weighting, at 50%, is greater in the health care sector. We compare ratings of our portfolios with their benchmarks.

Our policy includes the following exclusions:

Coal: Companies that derive more than 25% of their income from coal-fired power plants. In addition, the Company must have demonstrated that in recent years it has reduced its Greenhouse Gas (GHG) emissions and plans to continue in this direction.

Tobacco: Businesses that derive more than 10% of their revenues from the manufacture of tobacco products.

Weapons: Any company involved in the manufacture and sale of anti-personnel mines, cluster munitions and biological or chemical weapons that contravenes the rules of International Humanitarian Law (IHL). Our ESG Committee reviews the prohibited and watch-list securities.

04.3. 補足情報 [任意]

Optimum Asset Management is of the view that responsible investment leads to better long-term results, which is in line with our investment values and philosophy. Our managers seek companies with long-term profitability and as a result, they manage financial and non-financial risks proactively. The intention is to make a constructive contribution to the success, sound governance and reputational risk management of companies with the view of optimizing their financial performance and the preservation of investors' capital.

Optimum Asset Management wants the companies which it invests in for its clients to behave as good corporate citizens in the environments where they operate, namely to act responsibly and to take part in the economic and social life of their communities.

Optimum Asset Management (OAM) has a formal internal policy concerning ESG factors, namely its Responsible Investment Policy. The policy has an impact on internally managed strategies.

Our ESG Committee, chaired by the Chief Investment Officer, Fixed Income, meets on a regular basis to review our practices and to conduct an internal analysis of securities rated below 3 by GIR. This internal committee is also responsible for drawing up a list of prohibited securities and watch-list securities. As already stated, the OAM investment teams exclude certain securities.


FI 05. Examples of ESG factors in screening process (Not Completed)


FI 06. Screening - ensuring criteria are met

06.1. 債券投資においてファンドスクリーニング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システムを記載してください。

スクリーニングの種類
ネガティブ/排他的スクリーニング​

その他

          Watchlist and prohibited issuers list.
        
ポジティブ/業界最高のスクリーニング

その他

          Front-office system integrates ESG ratings
        

06.2. 補足情報 [任意]


B) 実施:テーマ

FI 07. Thematic investing - overview (Private)


FI 08. Thematic investing - themed bond processes

08.1. グリーン債原則に従ったテーマ債券の発行に関連する透明性や開示を奨励しているかどうか示してください。社会貢献債原則またはサステナビリティ債ガイドライン。

08.2. 発行体が提供文書の記載に従って、債券収益を配分していないときに取るべき対応策を説明してください。

As of today, it has not occurred that proceeds were not disbursed as described. We carefully choose the bonds and projects we invest in. If it was the case, we would engage dialogue with the issuer to have explanations and seek resolutions. As a last resort, we would disinvest or no longer list the investment as impact investing.

08.3. 補足情報 [任意]


FI 09. Thematic investing - assessing impact

09.1. 組織のテーマ投資の環境的または社会的影響を評価する方法を示してください。

09.2. 補足情報 [任意]

For our impact investing, we look at Green bond framework; their second opinion report and annual reporting on their achievements.


C) 実施:ESG問題の統合

FI 10. Integration overview

10.1. ESGを従来の財務分析に統合するアプローチを説明してください。

In its operations, Optimum Asset Management applies three common practices associated with ESG factors to ensure that its investment strategies are always in line with responsible investment:

  • Incorporation of ESG factors into our management services: We work closely with Groupe Investissement Responsable for this purpose. GIR is a Canadian leader in the management of  proxy voting rights and ESG research.
  • Use of our technology tools with ESG factors: Our technology tools are developed to leverage ESG factors in our quantitative analyses to ensure that our management strategies comply with the principles for responsible investment.
  • Selection of value-added securities based on ESG factors: We target companies that, through their responsible practices, have a positive social and environmental impact that enhances their earnings and share prices.

In bond management, the members of the Credit Committee use the following criteria when selecting eligible bond issuers for all our portfolios:

  • Altman ratio: A ratio that determines a company’s probability of default over the next two years;
  • Credit rating: A rating provided by major rating agencies;
  • ESG rating: A rating established by Groupe Investissement Responsable for each Canadian issuer to cover environmental, social and governance aspects;
  • Merton model: A model used to assess the value of a bond relative to the valuation according to the capital structure.

We incorporate environmental, social and governance (ESG) principles into our security-selection process by including the external research of Groupe Investissement Responsable in our investment universe. This ESG rating is subject to an exhaustive review by internal bond analysts. GIR conducts an exhaustive analysis of the ESG factors of each Canadian issuer and assigns them a rating on a scale of 0 to 10, with 10 being the highest rating. Any company with a rating below 3 is reviewed more closely to ensure that certain aspects have not been overlooked or that the company is taking steps to improve its situation.

Our internal real-time computer system provides ESG data for client portfolios in the form of a matrix. Each security is assigned an E rating, an S rating and a G rating, as well as an overall ESG rating. The weighting of environmental, social and governance factors is defined by the issuer's sector of activity. For example, the environmental weighting, at 45%, is greater in the energy sector, whereas the social weighting, at 50%, is greater in the health care sector. The ratings of securities in the same sector are aggregated. The sector weightings are determined in this way, and then an overall rating for the portfolio is provided and compared with the benchmark.

We integrate environmental, social and governance (ESG) principles into our bond selection process.

Our ESG Committee, chaired by the Chief Investment Officer, Fixed Income, meets on a regular basis to review our practices and to conduct an internal analysis of securities rated below 3 by GIR. This internal committee is responsible for drawing up a list of prohibited securities and securities on watchlist.

10.2. 投資する債券の各種類に対してESG統合アプローチをどのように調整するのか説明してください。

SSA

Our approach integrates ESG into traditional financial analysis of Canadian federal, provincial and municipal bonds. We consider climate change, environmental policies and social impact, such as education and social housing in project financing. Also, we consider the quality of the governance of the issuers.

Unlike corporate bonds, SSA issuers don’t have ESG scores. We incorporate the United Nations’ Sustainable Development Goals into our portfolios. We focus on government securities issued to fund projects that contribute positively to society, such as Green bonds and entity that provide social services to the population.

社債(金融)

Optimum Asset Management applies three common practices associated with ESG factors to its operations to ensure that its investment strategies are always in line with responsible investment:

  • Incorporation of ESG factors into our management services: We work closely with Groupe Investissement Responsable for this purpose. GIR is a Canadian leader in the management of  proxy voting rights and ESG research.
  • Use of our technology tools with ESG factors: Our technology tools are developed to leverage ESG factors in our quantitative analyses to ensure that our management strategies comply with the principles for responsible investment.
  • Selection of value-added securities based on ESG factors: We target companies that, through their responsible practices, have a positive social and environmental impact that enhances their earnings and share prices.

In bond management, the members of the Credit Committee use the following criteria when selecting eligible bond issuers for all our portfolios:

  • Altman ratio: A ratio that determines a company’s probability of default over the next two years;
  • Credit rating: A rating provided by major rating agencies;
  • ESG rating: A rating established by Groupe Investissement Responsable for each Canadian issuer to cover environmental, social and governance aspects;
  • Merton model: A model used to assess the value of a bond relative to the valuation according to the capital structure.

We incorporate environmental, social and governance (ESG) principles into our security-selection process by including the external research of Groupe Investissement Responsable in our investment universe. This ESG rating is subject to an exhaustive review by internal bond analysts. GIR conducts an exhaustive analysis of the ESG factors of each Canadian issuer and assigns them a rating on a scale of 0 to 10, with 10 being the highest rating. Any company with a rating below 3 is reviewed more closely to ensure that certain aspects have not been overlooked or that the company is taking steps to improve its situation.

Our internal real-time computer system provides ESG data for client portfolios in the form of a matrix. Each security is assigned an E rating, an S rating and a G rating, as well as an overall ESG rating. The weighting of environmental, social and governance factors is defined by the issuer's sector of activity. For example, the environmental weighting, at 45%, is greater in the energy sector, whereas the social weighting, at 50%, is greater in the health care sector. The ratings of securities in the same sector are aggregated. The sector weightings are determined in this way, and then an overall rating for the portfolio is provided and compared with the benchmark.

We integrate environmental, social and governance (ESG) principles into our bond selection process, as well as GHG emission intensity when available.

Our ESG Committee, chaired by the Chief Investment Officer, Fixed Income, meets on a regular basis to review our practices and to conduct an internal analysis of securities rated below 3 by GIR. This internal committee is responsible for drawing up a list of prohibited securities and securities on credit watch.

With financial issuers, there is a second layer of analysis. We take into account the ESG impact of project financing.

社債(非金融)

Optimum Asset Management applies three common practices associated with ESG factors to its operations to ensure that its investment strategies are always in line with responsible investment:

  • Incorporation of ESG factors into our management services: We work closely with Groupe Investissement Responsable for this purpose. GIR is a Canadian leader in the management of  proxy voting rights and ESG research.
  • Use of our technology tools with ESG factors: Our technology tools are developed to leverage ESG factors in our quantitative analyses to ensure that our management strategies comply with the principles for responsible investment.
  • Selection of value-added securities based on ESG factors: We target companies that, through their responsible practices, have a positive social and environmental impact that enhances their earnings and share prices.

In bond management, the members of the Credit Committee use the following criteria when selecting eligible bond issuers for all our portfolios:

  • Altman ratio: A ratio that determines a company’s probability of default over the next two years;
  • Credit rating: A rating provided by major rating agencies;
  • ESG rating: A rating established by Groupe Investissement Responsable for each Canadian issuer to cover environmental, social and governance aspects;
  • Merton model: A model used to assess the value of a bond relative to the valuation according to the capital structure.

We incorporate environmental, social and governance (ESG) principles into our security-selection process by including the external research of Groupe Investissement Responsable in our investment universe. This ESG rating is subject to an exhaustive review by internal bond analysts. GIR conducts an exhaustive analysis of the ESG factors of each Canadian issuer and assigns them a rating on a scale of 0 to 10, with 10 being the highest rating. Any company with a rating below 3 is reviewed more closely to ensure that certain aspects have not been overlooked or that the company is taking steps to improve its situation.

Our internal real-time computer system provides ESG data for client portfolios in the form of a matrix. Each security is assigned an E rating, an S rating and a G rating, as well as an overall ESG rating. The weighting of environmental, social and governance factors is defined by the issuer's sector of activity. For example, the environmental weighting, at 45%, is greater in the energy sector, whereas the social weighting, at 50%, is greater in the health care sector. The ratings of securities in the same sector are aggregated. The sector weightings are determined in this way, and then an overall rating for the portfolio is provided and compared with the benchmark.

We integrate environmental, social and governance (ESG) principles into our bond selection process, as well as GHG emission intensity when available.

Our ESG Committee, chaired by the Chief Investment Officer, Fixed Income, meets on a regular basis to review our practices and to conduct an internal analysis of securities rated below 3 by GIR. This internal committee is responsible for drawing up a list of prohibited securities and securities on credit watch.

10.3. 補足情報 [任意]


FI 11. Integration - ESG information in investment processes

11.1. ESG情報が、通常、投資プロセスの一部としてどのように使用されるのか記載してください。

当てはまるものをすべて選択してください
SSA
社債(金融)
社債(非金融)
ESG分析をファンダメンタル分析に組み込んでいる
ESG分析が発行体の内部信用評価を調整するために利用される
ESG分析が予想財務業績および将来キャッシュフロー予測を調整するために利用される
ESG分析が発行体の同業グループと比較したランキングに影響する
発行体のESG債スプレッドおよび同セクター企業に対するその相対価値が、すべてのリスクが織り込まれているか否かを把握するために分析される
各種デュレーション/満期の発行体債券へのESG分析の影響が分析される。
感度分析およびシナリオ分析が、ベースケースとESG組み込み証券評価の差を比較する評価モデルに適用される
ESG分析が、ポートフォリオのウェイティング決定に組み込まれている
会社、セクター、国、通貨が、ESGエクスポージャーの変化およびリスク制限の違反についてモニタリングされる
ESGリスクが大きい証券についてポートフォリオのESGプロファイルが検討され、ベンチマークのESGプロファイルと比較して評価される
その他(具体的に記載してください)

11.2. 補足情報 [任意]


FI 12. Integration - E,S and G issues reviewed

12.1. 組織の統合プロセスでESG問題をどのように検討するか示してください。

E(環境)
S(社会)
G(ガバナンス)
SSA

E(環境)

S(社会)

G(ガバナンス)

社債(金融)

E(環境)

S(社会)

G(ガバナンス)

社債(非金融)

E(環境)

S(社会)

G(ガバナンス)

12.2. 組織の統合プロセスでE/S/G要因を検討する方法を詳しく説明してください。

SSA

Our SSA process integrates ESG into traditional financial analysis of Canadian federal, provincial and municipal bonds. We consider climate change, environmental policies and social impact, such as education and social housing in project financing. Also, we consider the quality of the governance of the issuers.

Unlike corporate bonds, SSA issuers don't have ESG scores. We incorporate the United Nations' Sustainable Development Goals into our portfolios and we calculate portfolio weights for each of the 17 goals.

We focus on government securities issued to fund projects that contribute positively to society, such as Green bonds and entity or projects that provide social services to the population, such as School boards, Hospitals and woodland protection.

社債(金融)

Optimum Asset Management applies three common practices associated with ESG factors to its operations to ensure that its investment strategies are always in line with responsible investment:

  • Incorporation of ESG factors into our management services: We work closely with Groupe Investissement Responsable for this purpose. GIR is a Canadian leader in the management of  proxy voting rights and ESG research.
  • Use of our technology tools with ESG factors: Our technology tools are developed to leverage ESG factors in our quantitative analyses to ensure that our management strategies comply with the principles for responsible investment.
  • Selection of value-added securities based on ESG factors: We target companies that, through their responsible practices, have a positive social and environmental impact that enhances their earnings and share prices.

In bond management, the members of the Credit Committee use the following criteria when selecting eligible bond issuers for all our portfolios:

  • Altman ratio: A ratio that determines a company’s probability of default over the next two years;
  • Credit rating: A rating provided by major rating agencies;
  • ESG rating: A rating established by Groupe Investissement Responsable for each Canadian issuer to cover environmental, social and governance aspects;
  • Merton model: A model used to assess the value of a bond relative to the valuation according to the capital structure.

We incorporate environmental, social and governance (ESG) principles into our security-selection process by including the external research of Groupe Investissement Responsable in our investment universe. This ESG rating is subject to an exhaustive review by internal bond analysts. GIR conducts an exhaustive analysis of the ESG factors of each Canadian issuer and assigns them a rating on a scale of 0 to 10, with 10 being the highest rating. Any company with a rating below 3 is reviewed more closely to ensure that certain aspects have not been overlooked or that the company is taking steps to improve its situation.

Our internal real-time computer system integrates ESG data for client portfolios in the form of a matrix. Each security is assigned an E rating, an S rating and a G rating, as well as an overall ESG rating. The weighting of environmental, social and governance factors is defined by the issuer's sector of activity. For example, the environmental weighting, at 45%, is greater in the energy sector, whereas the social weighting, at 50%, is greater in the health care sector. The ratings of securities in the same sector are aggregated. The sector weightings are determined in this way, and then an overall rating for the portfolio is provided and compared with the benchmark.

We incorporate the United Nations' Sustainable Development Goals into our portfolios and we calculate portfolio weights for each of the 17 goals.

Our ESG Committee, chaired by the Chief Investment Officer, Fixed Income, meets on a regular basis to review our practices and to conduct an internal analysis of securities rated below 3 by GIR. This internal committee is responsible for drawing up a list of prohibited securities and securities on watchlist.

社債(非金融)

Optimum Asset Management applies three common practices associated with ESG factors to its operations to ensure that its investment strategies are always in line with responsible investment:

  • Incorporation of ESG factors into our management services: We work closely with Groupe Investissement Responsable for this purpose. GIR is a Canadian leader in the management of  proxy voting rights and ESG research.
  • Use of our technology tools with ESG factors: Our technology tools are developed to leverage ESG factors in our quantitative analyses to ensure that our management strategies comply with the principles for responsible investment.
  • Selection of value-added securities based on ESG factors: We target companies that, through their responsible practices, have a positive social and environmental impact that enhances their earnings and share prices.

In bond management, the members of the Credit Committee use the following criteria when selecting eligible bond issuers for all our portfolios:

  • Altman ratio: A ratio that determines a company’s probability of default over the next two years;
  • Credit rating: A rating provided by major rating agencies;
  • ESG rating: A rating established by Groupe Investissement Responsable for each Canadian issuer to cover environmental, social and governance aspects;
  • Merton model: A model used to assess the value of a bond relative to the valuation according to the capital structure.

We incorporate environmental, social and governance (ESG) principles into our security-selection process by including the external research of Groupe Investissement Responsable in our investment universe. This ESG rating is subject to an exhaustive review by internal bond analysts. GIR conducts an exhaustive analysis of the ESG factors of each Canadian issuer and assigns them a rating on a scale of 0 to 10, with 10 being the highest rating. Any company with a rating below 3 is reviewed more closely to ensure that certain aspects have not been overlooked or that the company is taking steps to improve its situation.

Our internal real-time computer system integrates ESG data for client portfolios in the form of a matrix. Each security is assigned an E rating, an S rating and a G rating, as well as an overall ESG rating. The weighting of environmental, social and governance factors is defined by the issuer's sector of activity. For example, the environmental weighting, at 45%, is greater in the energy sector, whereas the social weighting, at 50%, is greater in the health care sector. The ratings of securities in the same sector are aggregated. The sector weightings are determined in this way, and then an overall rating for the portfolio is provided and compared with the benchmark.

We incorporate the United Nations' Sustainable Development Goals into our portfolios and we calculate portfolio weights for each of the 17 goals.

Our ESG Committee, chaired by the Chief Investment Officer, Fixed Income, meets on a regular basis to review our practices and to conduct an internal analysis of securities rated below 3 by GIR. This internal committee is responsible for drawing up a list of prohibited securities and securities on watchlist.

12.3. 補足情報 [任意]


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