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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 » Implementation processes

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
0 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
100 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (financial)
0 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
100 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (non-financial)
0 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
100 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.

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. Additional information [Optional].

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

specify description

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

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

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

03.3. Additional information. [Optional]


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