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Galliard Capital Management, Inc.

PRI reporting framework 2020

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income

アクティブ運用している債券におけるESGの組み入れ

実施プロセス

FI 01. Incorporation strategies applied

以下を記載してください。 (1)組織でアクティブ運用する債券投資について、どのESG組み入れ戦略や組み合わせを使用しているか(2)各戦略が適用されるアクティブ運用債券投資合計の割合(+/- 5%)
社債(金融)
0 スクリーニングのみ
0 テーマのみ
90 統合のみ
0 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
0 3つの戦略すべての組み合わせ
10 組み入れ戦略を適用していない
100%
社債(非金融)
0 スクリーニングのみ
0 テーマのみ
90 統合のみ
0 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
0 3つの戦略すべての組み合わせ
10 組み入れ戦略を適用していない
100%
証券化商品
0 スクリーニングのみ
0 テーマのみ
25 統合のみ
0 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
0 3つの戦略すべての組み合わせ
75 組み入れ戦略を適用していない
100%

01.2. 特定のESG組み入れ戦略を選択している理由と、使用する戦略の組み合わせを説明してください。

At Galliard, we believe that fixed income’s role is to generate income while providing safety of principal. This belief is reflected in our conservative approach to issuer selection, diversification and other risk controls. We also consider issuers that recognize and properly address ESG-related risks as simply better managed entities (companies), and worthy of our investment dollars. Long before the ESG acronym was even created, Galliard already incorporated this aspect in the mosaic approach that it continues to use to underwrite these issuers.

On behalf of our clients, Galliard is also concerned with the long-term sustainability of those entities that we allocate capital to. Although we are not equity investors, our buy-and-hold approach to fixed income forces us to maintain a long-term view on ESG-related issues that could jeopardize our investments.

01.3. 補足情報 [任意]

Although we do not systematically seek to screen companies from our investable universe on either a positive or negative basis, we are able to do so when requested by clients through our investment compliance engine.


FI 02. ESG issues and issuer research (Private)


FI 03. Processes to ensure analysis is robust

03.1. 組織のESG調査プロセスの堅牢性を確保する方法を記載してください。

03.2. ESG情報または分析を投資チーム内で共有する方法を記載してください。

          ESG information is discussed in the Credit Working Group meetings
        

03.3. 補足情報 [任意]


C) 実施:ESG問題の統合

FI 10. Integration overview

10.1. ESGを従来の財務分析に統合するアプローチを説明してください。

Galliard's credit analysts use the "mosaic" approach, where data gets obtained from a wide variety of sources, both quantitative and qualitative, that ultimately drives investment decision making. ESG related items are an important part of the mosaic that may or may not change the analyst's opinion about a certain credit. Our credit write-ups contain information on the issuers current MSCI ESG-rating and a brief narrative around the issuer’s ESG strengths and weaknesses. Credit analysis is no exact science but ESG-related red flags have often been a precursor of credit problems.

10.2. 投資する債券の各種類に対してESG統合アプローチをどのように調整するのか説明してください。

社債(金融)

Galliard's ESG integration approach is an important part of the corporate credit analysis process, where ESG related red flags could be a precursor of credit problems.

社債(非金融)

Galliard's ESG integration approach is an important part of the corporate credit analysis process, where ESG related red flags could be a precursor of credit problems.

証券化商品

Galliard incorporates ESG factors in securitizations primarily in ABS securitizations involving consumer loans and leases and in business sectors including agriculture and construction equipment, trucking and transportation, equipment loans and leases and small business finance.  When available and applicable, we leverage the corporate ESG rating and analysis used by our Corporate credit team. 

 

10.3. 補足情報 [任意]

Galliard applies the same philosophy to the selection of municipal and structured bond issuers, although ESG related data is harder to obtain and incorporate into the analysis.


FI 11. Integration - ESG information in investment processes

11.1. ESG情報が、通常、投資プロセスの一部としてどのように使用されるのか記載してください。

当てはまるものをすべて選択してください
社債(金融)
社債(非金融)
証券化商品​
ESG分析をファンダメンタル分析に組み込んでいる
ESG分析が発行体の内部信用評価を調整するために利用される
ESG分析が予想財務業績および将来キャッシュフロー予測を調整するために利用される
ESG分析が発行体の同業グループと比較したランキングに影響する
発行体のESG債スプレッドおよび同セクター企業に対するその相対価値が、すべてのリスクが織り込まれているか否かを把握するために分析される
各種デュレーション/満期の発行体債券へのESG分析の影響が分析される。
感度分析およびシナリオ分析が、ベースケースとESG組み込み証券評価の差を比較する評価モデルに適用される
ESG分析が、ポートフォリオのウェイティング決定に組み込まれている
会社、セクター、国、通貨が、ESGエクスポージャーの変化およびリスク制限の違反についてモニタリングされる
ESGリスクが大きい証券についてポートフォリオのESGプロファイルが検討され、ベンチマークのESGプロファイルと比較して評価される
その他(具体的に記載してください)

11.2. 補足情報 [任意]


FI 12. Integration - E,S and G issues reviewed

12.1. 組織の統合プロセスでESG問題をどのように検討するか示してください。

E(環境)
S(社会)
G(ガバナンス)
社債(金融)

E(環境)

S(社会)

G(ガバナンス)

社債(非金融)

E(環境)

S(社会)

G(ガバナンス)

証券化商品

E(環境)

S(社会)

G(ガバナンス)

12.2. 組織の統合プロセスでE/S/G要因を検討する方法を詳しく説明してください。

社債(金融)

The importance of E, S and G-related factors varies by industry. Environmental factors require mostly qualitative research using SEC filings, newspaper stories, anecdotal items and google searches. Galliard also relies heavily on the environmental records maintained by MSCI.

Similar qualitative analysis is required to measure a company’s social behavior, including labor relations, safety disclosures and health-related violations. Although companies are clearly improving their disclosures of such items, Galliard heavily relies on the research provided by MSCI.

We view Governance related problems as the most important part of the ESG analysis for financial corporate issuers. Galliard has always considered a company’s “character” as part of the firm’s 4-C approach to credit analysis. Galliard’s analysts periodically meet management teams, in person or at industry conferences, and follow earnings calls to better understand a company’s corporate culture. The analysis largely focuses on a company's board and members of the senior management team, and allows the analyst to identify excessive pay policies, overly shareholder friendly (bondholder unfriendly) financial policies and aggressive application of the accounting rules, which are all red flags of future credit problems.

 

社債(非金融)

The importance of E, S and G-related factors varies by industry. Environmental factors require mostly qualitative research using SEC filings, newspaper stories, anecdotal items and google searches. Galliard also relies heavily on the environmental records maintained by MSCI.

Similar qualitative analysis is required to measure a company’s social behavior, including labor relations, safety disclosures and health-related violations. Although companies are clearly improving their disclosures of such items, Galliard heavily relies on the research provided by MSCI.

While still important, we view Governance as less important for industrial and utility issuers than for Financial issuers. Galliard has always considered a company’s “character” as part of the firm’s 4-C approach to credit analysis. Galliard’s analysts periodically meet management teams, in person or at industry conferences, and follow earnings calls to better understand a company’s corporate culture. The analysis largely focuses on a company's board and members of the senior management team, and allows the analyst to identify excessive pay policies, overly shareholder friendly (bondholder unfriendly) financial policies and aggressive application of the accounting rules, which are all red flags of future credit problems.

証券化商品

Environmental factors are most applicable to our securitization analysis of ABS involving vehicles, automobiles, trucking, and agricultural equipment. Our analysis focuses on identifying underlying Parent/Issuer/Sponsor initiatives regarding energy efficiency, environmental impact, and sustainability.

Social factors identified in securitizations of consumer receivables involves the identification of predatory lending risks. This requires an understanding of the Sponsor's (issuer, originator, parent company, etc.) origination and servicing practices. Furthermore, consumer loan and lease products should provide a legitimate benefit for the borrower, as opposed to financial products designed specifically for securitizations. Social factors are also present in ABS of Small Business Administration program loans that promote employment growth through small business development in the United States.

Our analysis of Governance related factors is primarily focused on the alignment of interests between the sponsor, the investor, and the borrower. Securitization programs should benefit a sponsor as part of the ongoing, diversified funding strategy, and not be utilized primarily for the benefit of exploiting securitization markets. As highlighted in the previous section regarding social factors, financial products should have a readily identifiable benefit for the borrower (consumers and small businesses). Finally, governance should also include an analysis of the sponsor's compliance with consumer protection, environmental, and labor laws.

12.3. 補足情報 [任意]


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