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Caixa Econômica Federal - VIART

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.

The Investment Philosophy establishes that allocation decisions should be based on fundamentalist analysis, focusing on the markets where the area holds deep knowledge. The assumption of risks is conditional on the comprehension and the capacity to measure them. Currently, the policy does not establish formal guidelines regarding the approach of the ASG factors, however, the fundamentalist analysis of the invested assets incorporates these issues into the analysis.

In relation to the management of structured funds and the Managed Portfolio of the FGTS, the mechanisms provided in the Investment Policies, regulations, applicable legal norms and qualitative evaluation tools are adopted, such as questionnaires and/ Or audit work carried out by independent legal advisors. In Addition, according to the instruments governing the managed funds and their respective integralized assets, it is also carried out an analysis of mandatory information that is forwarded by the companies invested in socio-environmental and governance issues.
In addition, companies, investees or partners are requested to provide proof of investment analysis, including monitoring, and, in most cases, specialized third parties are hired for this purpose.
CAIXA publishes on its websites the ESG factors that permeate the entire Financial Institution http://www.caixa.gov.br/sustentabilidade/Paginas/default.aspx.

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]

01.6. Additional information [Optional].

          For new models of variable income evaluation, the factor integration methodology is being improved, so that the method employed can evaluate and measure the impact of ESG factors throughout the analysis process. This method should involve three phases: (i) research, (ii) quantification and (iii) valuation. The first phase involves the collection and analysis of information regarding ESG factors and the verification of which ones are relevant to the valuation of companies in the sector to be analyzed, involving macroeconomic information and themes, sector-specific value drivers, and drivers of specific values ​​of companies; The second, a crucial point in the evaluation process, consists of transforming the information obtained in the previous phase into raw material for valuation, involving steps such as determining the most appropriate indicators and metrics to quantify ESG impacts, separating recurring or episodic events, identification of the most appropriate cash flow lines to reflect the impacts, estimation of the probability of the impacts materializing, and assessment of the estimated time horizon for the impact; In the third, the information is inserted in the valuation models that use the Discounted Cash Flow method, with the objective of finding the Net Present Value of subjects that until then were not priced and, finally, the company's fair value adjusted to the ESG issues.
        

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.

Our Conduct Code and Proxy Voting Policy set forth that any situation of conflicts of interest shall be idenfified and avoided. Portfolio Managers are responsible to managing the situation of potencial conflicts of investment process, due to the first line / frontline of defence. Aditionally, as second line of defence, Compliance Division is responsible to carry out a array of processes in order to verify any situation of potential conflict of interests. Including membership in every Comitee of Caixa/VIART. Cases also can be deliberated in Comitees

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


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