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DDJ Capital Management, LLC

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

01.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

DDJ employs the integration approach, whereby ESG considerations and risk factors are incorporated into DDJ's fundamental, bottom-up investment process. DDJ endeavors to identify material ESG factors that may contribute to financial downside (in particular, significant event risks that can affect an issuer's creditworthiness), as well as positive ESG factors or improving ESG trends that can create long-term value and assess whether or not market pricing adequately reflects such factors with respect to any proposed investment. If DDJ believes that an identified ESG-related factor will have a material  impact on the business that may disproportionately change the risk/reward profile of such investment, DDJ will factor that assessment into its investment decision-making process.

DDJ believes that integrating ESG factors into its investment process in this manner allows for deeper insight into critical risk factors, including exogenous factors not typically exposed in a traditional business analysis model, ultimately resulting in sounder investment decisions on behalf of its clients. Upon request for selected client mandates, DDJ also employs exclusionary screening with respect to certain investments in particular issuers or industries. When ESG considerations are taken into account in the investment decision making process, DDJ compares ESG factors on an industry relative, not absolute, basis.  

01.3. Additional information [Optional].

Not Applicable

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

          DDJ reviews ESG rating changes from our ESG research provider on a monthly basis and also reviews portfolio-level risk statistics on a quarterly basis.

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

03.3. Additional information. [Optional]

Not Applicable