This report shows public data only. Is this your organisation? If so, login here to view your full report.

Galliard Capital Management, Inc.

PRI reporting framework 2020

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » (C) Implementation: Integration

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]


Top