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Troy Asset Management Limited

PRI reporting framework 2020

You are in Organisational Overview » Asset class implementation gateway indicators

Asset class implementation gateway indicators

OO 10. Active ownership practices for listed assets

10.1. Select the active ownership activities your organisation implemented in the reporting year.

Listed equity – engagement

Listed equity – voting

Fixed income SSA – engagement

Please explain why you do not engage directly and do not require external managers to engage with companies on ESG factors.

          Troy's Fixed Income exposure is currently comprised of US and UK index linked sovereign debt.  These assets are held in order to preserve the value of capital.  As such the focus is on risk mitigation.  Our aim is primarily to minimise liquidity risk, currency risk, default risk and the risk associated with inflation.  Although we recognise the value that engagement could add given a wider portfolio of municipal or corporate debt, we do not feel that engagement with US and UK sovereign issuers would have a probability of delivering meaningful impact (as necessitated by the prioritisation of engagement guidelines in our RI policy).
        

OO 11. ESG incorporation practices for all assets

11.1. Select the internally managed asset classes in which you addressed ESG incorporation into your investment decisions and/or your active ownership practices (during the reporting year).

Listed equity

Fixed income - SSA

Commodities

Cash

Money market instruments

Select the externally managed assets classes in which you and/or your investment consultants address ESG incorporation in your external manager selection, appointment and/or monitoring processes.
Asset class
ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes
Listed equity

Listed equity - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

Property

Property - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

Infrastructure

Infrastructure - ESG incorporation addressed in your external manager selection, appointment and/or monitoring processes

11.4. Provide a brief description of how your organisation includes responsible investment considerations in your investment manager selection, appointment and monitoring processes.

The incorporation of ESG within the selection of both listed property and infrastructure vehicles is conducted in the same way as any other listed equity investment.  Both the management team and the underlying investments of any potential collective property or infrastructure investment trust are analysed both from a financial and ESG perspective.  This analysis of management and business operations is conducted in the same way (and by the same team) as it would be for any other listed equity.

The monitoring process via meetings and ongoing analysis is also conducted in the same way as per other listed equities.

ESG risks are assessed according to our responsible investment policy and decisions are made according to the same criteria as laid out in paragraph 4. of Troy's investment policy (Environmental, Social and Governance risks within the Research Process).

ESG incorporation practices are now being incorporated into the fund selection and monitoring process for the funds-of-funds where listed equities are held indirectly as outlined above.  This process will continue to evolve.

11.5. For your externally managed pooled funds, describe any mechanisms in place to set expectations as part of the appointment or commitment process.

We are not prescriptive in our demands of external fund managers but do seek to understand how they incorporate ESG into their research process, how they engage with companies, and how ESG issues impact portfolio construction.  We ask the fund managers we invest in to fill out an ESG-related due diligence questionnaire, provide details of their responsible investment policy and a record of how they have voted and engaged with companies.  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.  


OO 12. Modules and sections required to complete

12.1. Below are all applicable modules or sections you may report on. Those which are mandatory to report (asset classes representing 10% or more of your AUM) are already ticked and read-only. Those which are voluntary to report on can be opted into by ticking the box.

Core modules

RI implementation directly or via service providers

Direct - Listed Equity incorporation

Direct - Listed Equity active ownership

Direct - Fixed Income

RI implementation via external managers

Indirect - Selection, Appointment and Monitoring of External Managers

Closing module

12.2. Additional information. [Optional]


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