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Optimum Asset Management Inc

PRI reporting framework 2020

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

Optimum Asset Management is actively committed to maximizing its clients' long-term returns while protecting their capital. To do so, we apply a high-tech, disciplined management approach based on thorough analysis of securities and issuers, well-defined risk management and sound investment selection. ESG factors are considered in the overall investment strategy.

The passive approach includes:

  • Exclusion Strategy, with Sector and Norm-based Exclusion Mechanisms
  • Inclusion Strategy, with Best-in-class and ESG Factors Integration Mechanism

The active approach is based on an engagement strategy, which includes:

  • Social Dialogue Mechanism
  • Shareholder Resolution Mechanism
  • Proxy Voting Mechanism
  • Divestment Mechanism

The ESG Committee is in charge of integrating nonfinancial matters related to environmental, social and governance (ESG) factors into the asset management process. As for fixed income investments, the United Nations 17 Sustainable Development Goals (SDGs) are analyzed.

In addition, Optimum Asset Management has established a stringent Code of Ethics and Conduct that places client interests first and to which all employees must adhere. Adherence to the Code is confirmed annually regardless of employees' activities and duties.

Lastly, the Proxy Voting Policy considers ESG factors and real economy impact which has a direct impact on the management of listed equity strategies.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

Optimum Asset Management (OAM) adopted its Responsible Investment Policy in May 2019. The policy covers our principles and approach to responsible investment, as well as application and accountability. The policy has an impact on internally managed strategies. Its purpose is to define a framework for and formalize our approach to responsible investment. It specifies that OAM has made a commitment to responsible investment by incorporating environmental, social and governance factors into its investment management process.

OAM’s preferred approach to responsible investment is based on the following considerations: shareholder engagement, incorporation of ESG criteria into investment analysis and decision-making processes, and exclusion of specific securities.

Optimum Asset Management is actively committed to maximizing its clients’ long-term returns while protecting their capital. To do so, we apply a high-tech, disciplined management approach based on thorough analysis of securities and issuers, well-defined risk management and sound investment selection.  

The passive approach includes:

Exclusion Strategy, with Sector and Norm-based Exclusion Mechanisms
Inclusion Strategy, with Best-in-class and ESG Factors Integration Mechanism

The active approach is based on an engagement strategy, which includes:

Social Dialogue Mechanism
Shareholder Resolution Mechanism
Proxy Voting Mechanism
Divestment Mechanism

ESG factors are considered in the overall investment strategy, as are other factors. The ESG Committee is in charge of integrating nonfinancial matters related to environmental, social and governance (ESG) factors into the asset management process. As for fixed income investments, the United Nations 17 Sustainable Development Goals (SDGs) set by the United Nations are analyzed.

In addition, Optimum Asset Management has established a stringent Code of Ethics and Conduct that places client interests first and to which all employees must adhere. Adherence to the Code is confirmed annually regardless of employees' activities and duties.

Furthermore, ESG scores are integrated in our technological front-office system. The quotes are provided by Groupe Investissement Responsable (GIR). This ESG consulting firm provides scores for issuers. Our technology is designed to leverage ESG factors in our quantitative analyses, allowing our management strategies to adhere to responsible investment principles.

GIR is hired to support our investment team and provides Optimum Asset Management with E, S, G and ESG scores for corporate issuers. The scores are compared to each portfolio's benchmark and reviewed by the ESG Committee to ensure better understanding of the data provided. With regards to actively managed portfolios, the United Nations 17 Sustainable Development Goals (SDGs) were integrated, and are now followed.

Lastly, the Proxy Voting Policy (adopted in 2012) considers ESG factors and real economy impact and has a direct impact on the management of listed equity strategies. We use GIR as a proxy-voting entity on behalf of Optimum Asset Management's portfolio managers. As for Canadian equity portfolios, we measure and track their carbon footprint, in order to improve ESG incorporation into our investment decision-making processes.

Optimum Asset Management’s investment policy applies to all portfolios. This policy does not apply to investments in exchange-traded funds (ETFs).

01.6. Additional information [Optional].

          
        

SG 01 CC. Climate risk (Private)


SG 02. Publicly available RI policy or guidance documents

 

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Additional information [Optional].


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Optimum Asset Management takes reasonable measures to detect all significant existing conflicts of interest or those that it reasonably expects to see occur between its employees and clients. With its internal policies and procedures, Optimum Asset Management ensures it is able to identify existing conflicts of interest and prevent those that may occur. 

Measures have been taken to avoid and to monitor conflicts that could cause prejudice to its clients or to the financial markets.

Optimum Asset Management complies with stringent legislative and regulatory rules set by the Autorité des marches financiers (AMF), as well as other rules to further protect its clients’ interests and has established a stringent Code of Ethics and Conduct to which all employees must adhere.

In addition, Optimum Asset Management has specific policies and procedures in place with regard to, among others, execution of orders, personal transactions, segregation of duties, remuneration and record keeping.

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


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