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Ninety One

PRI reporting framework 2020

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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
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
100%
Corporate (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
100%
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
100%

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

Integration of ESG considerations with investment processes is a priority for us. This was a strategic decision as we believe that it adds more value to our clients to treat material ESG issues as an integral part of the investment analysis process rather than a separate consideration. Our primary drive is to ensure that ESG risks and opportunities are fully understood by portfolio managers and analysts and are subsequently integrated into their investment process.

Other incorporation strategies have come to the fore, often as a result of client requests. In corporates, in particular, our detailed ESG scorecard which looks at detailed Environmental, Social and Governance risks, allows us to offer clients bespoke solutions in line with their specific ESG values.

Ninety One manages a variety of fixed income strategies across different investment teams. Each of Ninety One’s investment teams have developed their own approach to ESG integration.

01.3. Additional information [Optional].

Please note that we use a multi-strategy approach to fixed income and our systems are unable to separate our corporate debt into financial and non-financial exposure across all of our holdings. We are only able to extract this information on a fund basis. As per our previous submissions, following consultation with a PRI staff member, we have used the numbers above for both categories in order to be able to answer all relevant questions in the fixed income section of this questionnaire.


FI 02. ESG issues and issuer research

02.1. Indicate which ESG factors you systematically research as part of your analysis on issuers.

Select all that apply
SSA
Corporate (financial)
Corporate (non-financial)
Environmental data
Social data
Governance data

02.2. Indicate what format your ESG information comes in and where you typically source it

Indicate who provides this information  

Indicate who provides this information  

Indicate who provides this information  

specify description

          Ratings agency (Fitch/S&P/Moodys)
        

Indicate who provides this information  

specific description

          Ratings agency (Fitch/S&P/Moodys)
        

Indicate who provides this information  

02.3. Provide a brief description of the ESG information used, highlighting any differences in sources of information across your ESG incorporation strategies.

Corporate

Emerging Market Credit:

We use a variety of information sources to populate the scores, including company meetings, Bloomberg, rating agency reports, company reports, reports from specialist ratings agencies such as MSCI ESG and RepRisk rating reports alongside proprietary information. We also use proprietary information obtained from our own contact with companies including meetings and ESG surveys which ask companies in our investment universe for detailed information on ESG issues.

Multi-Asset Credit:

Our overall ESG analysis is proprietary in that the scores are not derived from any single third-party source; however, our assessment incorporates data from a variety of information sources including but not limited to MSCI reports, RepRisk reports, a proprietary portfolio carbon profiler, company sustainability reports and discussions with company management teams. 

SSA

Our analysis is informed by a wide array of national data sets, as well as policy analysis of current trends. Indeed the onus is on the expertise of our regional specialists to understand the ESG factors that could affect our holdings over the investment horizon. An aggregate ESG scores feeds into all our investment scorecards; all other things equal, countries with better ESG trends will feature more highly in the portfolio.

02.4. Additional information. [Optional]


FI 03. Processes to ensure analysis is robust

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

specify description

          Reviews of EM corporate debt ESG process and scores by the internal ESG team.
        

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

03.3. Additional information. [Optional]


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