Quoniam's systematic analysis incorporates ESG data from established SRI data providers like MSCI ESG Research, ISS/oekom, S&P Trucost as well as further capabilities from a dedicated ESG team of our mother company, Union Investment.
In a first stage, these data, which covers about 32,000 securities, 14,000 issuers, 8000 companies and 104 countries is automatically imported into our data base.
In a second stage, data quality is validated and in-house research as well as other external research (e.g. Norges Bank list) incorporated into the data.
In a third stage, we formally incorporate responsible investment policies of our clients in the investment process, applying either positive or exclusionary lists or screening criteria based on ESG factors (in case of the Quoniam Funds Selection (QFS) SICAV this step refers to the screening criteria as part of the full incorporation strategy described in LEI 01.3). If the exclusions lists are applied to reduce the individual universe of a fund the automated investment process can only choose securities from the reduced fund's universe. Furthermore, these lists are part of the daily investment monitoring process. This includes analysis of company structures reflecting corporate actions such as mergers and acquisitions.
In the last stage, all screening lists and criteria applied in the portfolio management process also feed into an internal audit system (MIG 21). Therefore, changes to the lists will lead to passive ESG guideline breaches and trigger appropriate actions within the portfolio management.