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Troy Asset Management Limited

PRI reporting framework 2020

You are in Strategy and Governance » Asset class implementation not reported in other modules

Asset class implementation not reported in other modules

SG 16. ESG issues for internally managed assets not reported in framework

Describe how you address ESG issues for internally managed assets for which a specific PRI asset class module has yet to be developed or for which you are not required to report because your assets are below the minimum threshold.

Asset Class

Describe what processes are in place and the outputs or outcomes achieved

Commodities

Troy's commodity exposure is exclusively to gold which is predominantly held through Exchange Traded Companies ("ETCs").  Although there are few alternative investment vehicles and none that specifically seek to hold responsibly sourced gold, Troy's preferred ETC providers increasingly hold gold that meets the post-2012 LBMA London Good Delivery standards for responsible sourcing.

Since January 2012, the LBMA requires that all LBMA Good Delivery Gold Refiners comply with the LBMA Responsible Gold Guidance (RGG), which aims to ensure that the London Market is free from metal that has financed conflict or been used for money laundering or terrorist financing. 

Such assets account for 4.9% of AUM

Money market instruments

Troy's only investments in short dated money market instruments is in government issued treasury bills.  As with longer dated government debt Troy assesses ESG risks in relation to the sovereign issuer.

Factors analysed may include, but are not limited to: (a) the jurisdiction’s judicial and penal system; (b) the risk of fines or legal action relating to breaches of regulation and conventions relating to social standards of practice and discrimination; and (c) the risk of fines or legal action relating to breaches of regulation and conventions relating to environmental standards.

Such assets account for 11.6% of AUM

16.2. Additional information [Optional].


SG 17. ESG issues for externally managed assets not reported in framework

17.1. Describe how you address ESG issues for externally managed assets for which a specific PRI asset class module has yet to be developed or for which you are not required to report because your assets are below the minimum threshold.

Asset Class

Describe what processes are in place and the outputs or outcomes achieved

Listed equities - ESG incorporation

We are not prescriptive in our demands of external fund managers but do seek to understand how they incorporate ESG into their research process and how ESG issues impact portfolio construction.  We ask the fund managers we invest in to fill out an ESG-related due diligence questionnaire and provide details of their responsible investing policy.  To get a more nuanced understanding of how ESG is incorporated at both a firm and fund level, we also ask ESG-related questions during our monitoring meetings with a fund manager.  By maintaining a written record of these meetings, we are able to judge how a fund manager's investment process evolves over time.

Such assets account for 1.8% of AUM

Listed equities - engagement

We are not prescriptive in our demands of external fund managers but do seek to understand how they engage with companies and how they vote their shares.  We ask the fund managers we invest in to fill out an Responsible Investment related due diligence questionnaire, provide details of their responsible investing policy and a record of how they've voted and engaged with companies.

Such assets account for 1.8% of AUM

Listed equities - (proxy) voting

We are not prescriptive in our demands of external fund managers but do seek to understand how they engage with companies and how they vote their shares.  We ask the fund managers we invest in to fill out an Responsible Investment related due diligence questionnaire, provide details of their responsible investing policy and a record of how they've voted and engaged with companies.

Such assets account for 1.8% of AUM

Property

All property investments are held indirectly through listed REIT structures. Troy applies its RI policy to its indirect investment in property in the same way as it is applies it to any other direct equity investments.

Environmental, social and governance risk factors are assessed on a look through basis to the underlying assets and their lease holders.  Where screens are applied, the revenue streams associated with the underlying lease holders are taken into account.

Governance risks are also assessed at the REIT level.  Voting and engagement are conducted at the level of the listed REIT.

Such assets account for 2.7% of AUM

Infrastructure

All infrastructure investments are held indirectly through listed fund structures.  Troy applies its RI policy to its indirect investment in infrastructure in the same way as it is applied to equity investments.

Environmental, social and governance risk factors are assessed on a look through basis to the underlying assets.  Where screens are applied, the revenue streams associated with the underlying assets are taken into account.

Governance risks are also assessed at the fund level.  Voting and engagement are conducted at the level of the listed fund.

Such assets account for 0.8% of AUM

17.2. Additional information.


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