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Neumeier Poma Investment Counsel, LLC

PRI reporting framework 2020

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes

実施プロセス

LEI 01. Percentage of each incorporation strategy

01.1. 以下を記載してください。(1)組織でのアクティブ運用上場株式にどのESG組み入れ戦略や組み合わせを使用しているか(2)アクティブ運用している上場株式の戦略または戦略の組み合わせ別内訳

ESG組み入れ戦略 (当てはまるものをすべてお選びください)
アクティブ運用される上場株式に戦略が適用される割合 (推定 +/- 5%)
100 %
アクティブ運用している上場株式の合計 200%

01.2. 組織が実施しているESG組み入れアプローチ、および、特定のESG組み入れ戦略を選択している場合はその理由を説明してください。

Neumeier Poma Investment Counsel's (NPIC) analysts and portfolio managers use a fundamental "bottoms-up" approach, which includes ESG analysis (incorporation), to identify stock investments with an opportunity to have a greater than 40% upside (20% downside).  Our objective is to maximize upside and control downside.  

We screen and exclude certain industries in our stock selection process, including, but not limited to: manufacture of guns; predatory lending; animal testing; companies whose products or services cause serious environmental degradation; companies whose products and services have a heavy fossil fuel/CO2 "footprint".  We exclude these investments because of their negative impact on the community overall.  We know we can avoid investing in these areas and still find other investments where we can make good returns.

We are small-cap value investors and we use a combination of strategies to find good investments. 

 

01.3. ESG組み入れ戦略の組み合わせを使用して資産を運用している場合、ESG戦略の組み合わせをどのように使用しているかを簡単に説明してください。 [任意]

As small-cap value equity investors we look for investments in companies with a market cap size between $250 million and $3 billion, putting the universe of possible candidates at approximately 2,000 companies.  The criteria we use to identify a good business includes finding profitable firms with high margins, low stock valuations, low debt, strong cash flow, proprietary competitive advantages, etc.  We consider the current economic environment as well as the long term.   When looking for possible investments we incorporate ESG screening to exclude industries such as dirty energy and guns as well as avoid companies which may screen negative on other ESG issues. After screening out stocks we do not want to invest in we still need to use other ESG factors and multi-level tests to identify good businesses for investments.  We are small-cap value investors and we use a combination of strategies to find good investments.


LEI 02. Type of ESG information used in investment decision

02.1. 組織でESG組み入れ戦略に使用しているESG情報およびこの情報の提供者を記載してください。

ESG情報の種類

この情報の提供者を選択してください

この情報の提供者を選択してください

この情報の提供者を選択してください

この情報の提供者を選択してください

この情報の提供者を選択してください

この情報の提供者を選択してください

02.2. ブローカーに対しESG調査結果を提供するよう奨励しているかどうかについて記載してください。

02.4. 補足情報 [任意]


LEI 03. Information from engagement and/or voting used in investment decision-making

03.1. ESGへのエンゲージメントや(委任状による)議決権行使から得られる情報を投資の意思決定に利用できるプロセスが組織にあるかどうかを記載してください。

03.2. 補足情報 [任意]

We are a small firm with 8 employees.  Three portfolio managers vote proxies and therefore know firsthand about the proxy votes when making investment decisions.  Stock selection is ultimately decided by the two portfolio managers who are also the company owners and they are aware of the proxy votes and any engagement information on an organization we are researching for a possible investment. 


A) 実施:スクリーニング

LEI 04. Types of screening applied

04.1. 組織内でアクティブ運用している上場株式に適用するスクリーニングの種類を記載し、説明してください。

スクリーニングの種類

スクリーニング実行者

説明

Our objective is to maximize upside and control downside.  Neumeier Poma Investment Counsel excludes certain industries in its stock selection process, including, but not limited to: manufacture of guns; predatory lending; animal testing; companies whose products or services cause serious environmental degradation; companies whose products and services have a heavy fossil fuel/CO2 "footprint". 

スクリーニング実行者

説明

We look for companies that are market leaders (#1 or #2 in sub sector) and this criteria includes, among others, ESG factors when valuing the business and future performance. We look for companies that have a proprietary product or patent that gives them an advantage over the competition.

 

04.2. スクリーニング基準が変更された場合に顧客や受益者に通知する方法について説明してください。

We are small-cap value equity investors and we don't deviate from this strategy.  Annually we review our investment objectives.  Institutional clients are given a monthly performance report and quarterly letter.

Our bottoms-up stock picking investment strategy includes a qualitative and fundamental approach for finding companies that meet our value criteria.  ESG factors and climate related risks and opportunities are included in our stock picking analysis but it is not the only criteria used. Our valuation and financial strength criteria typically eliminates 75% of the names from our possible universe of investments.  Along with our multi-level testing to find good stock investments we avoid investments in fossil fuels, firearms, private prisons, and unethical labor or lending practices.

Our ESG screening and climate change criteria is based on both science data and our personal attitude and ethical standards towards the environment.  For example, we find that we can avoid investing in areas like fossil fuels and still find good investments for our clients that don't have a negative impact on the environment.  


LEI 05. Processes to ensure screening is based on robust analysis

05.1. スクリーニングが徹底した分析に基づいていることを確実にするために、組織が使用しているプロセスを選択してください。

05.2. ESGスクリーニング戦略の一環で包括的なESG調査の対象となるアクティブ上場株式ポートフォリオの割合を示してください。

05.5. 補足情報 [任意]

One screen we use is to screen out investments in industries and products that we feel have a negative effect on the environment and community. Some areas we avoid investing include but are not limited to fossil fuels, firearms, unethical labor or lending practices.


LEI 06. Processes to ensure fund criteria are not breached

06.1. ファンドの基準に違反がないことを確認するために組織が使用しているプロセスを記載してください。

          We are a small company with 8 full time employees. Two of the three portfolio managers  are owners and they make the final investment decisions.
        

06.2. ファンドのスクリーニング基準に対する違反が判明した場合、これらの違反を是正するために従うプロセスを説明してください。

We are a small company with 8 full time employees.  Final investment decisions are made by the two portfolio managers who are the owners. If a screening criteria was breached or if information became available that changed the original investment thesis for an organization, the owners would evaluate this new information and decide if changes are needed to the investment.

The investment portfolio is checked daily by three portfolio managers for any irregularities. 

06.3. 補足情報 [任意]


C) 実施: 統合

LEI 08. Review ESG issues while researching companies/sectors

08.1. E・S・Gの各要因が投資分析の一環として体系的に調査されている、アクティブ運用の上場株式ポートフォリオの割合を記載してください。

ESG問題

影響を受ける割合
E(環境)

E(環境)

S(社会)

S(社会)

コーポレートガバナンス

コーポレートガバナンス

08.2. 補足情報 [任意]

Environmental: screen to exclude investing in services and products with a heavy fossil fuel / co2 footprint. Bloomberg law documents for outstanding ESG lawsuits and complaints.

Social: 10K and corporate filings: analyze relationship with suppliers, customers and community. Review if any outstanding lawsuits and the nature of the dispute.

Governance: 10k and corporate filings to analyze executive salaries and stock holdings, gender data for executive positions, etc.


LEI 09. Processes to ensure integration is based on robust analysis

09.1. ESG統合が徹底した分析に基づいていることを確実にするために、組織が使用しているプロセスを記載してください。

09.2. 組織の統合戦略の一環で包括的ESG調査の対象になるアクティブ運用上場株式の割合を記載してください。

09.5. ポートフォリオ・マネージャーがどのようにしてESG情報を保有し、使っているのか説明してください。

09.6. 補足情報 [任意]

We are small-cap value investors.  Stocks are selected for investment after meeting our rigorous criteria:  Compelling high quality companies; Stock trades at a discount; Identifiable growth catalysts; Screens positive environmental, social governance factors; Avoid investments including but not limited to fossil fuels, firearms, private prisons, animal testing, and unethical labor or lending practices.   Our valuation and financial criteria eliminates about 75% of the names in our small-cap universe.  Our research team's experience and knowledge eliminate additional names along with the ESG screening and analysis. 

Generally ESG review is a smaller part of our overall company analysis but it can vary depending on the company being analyzed and the industry it is involved in.  Climate change related risks and opportunities are analyzed.  We review company reports on corporate social responsibility and reports addressing energy efficiency and waste within the organization and supply and manufacturing chain. 

 


LEI 10. Aspects of analysis ESG information is integrated into

この指標には新しい設問が追加されています。事前に入力されている回答を精査してください。

10.1. 投資分析のどの側面にESG情報を統合しているかを記載してください。

アクティブ運用する上場株式の内投資分析をする割合

アクティブ運用する上場株式の内投資分析をする割合

アクティブ運用する上場株式の内投資分析をする割合

アクティブ運用する上場株式の内投資分析をする割合

アクティブ運用する上場株式の内投資分析をする割合

10.3. ESG情報をポートフォリオの加重にどう統合しているかを説明してください。

ESG information is included in our small-cap value fundamental investment analysis.  Our portfolio is constructed of investments we find with the best overall value.

Our objective is to maximize upside and control downside.  While we exclude, through screening, certain industries in our stock selection process, we also may underweight or overweight certain sectors based on ESG risk. For example we may underweight fossil fuels because we find investing our money elsewhere gives us better returns. 

We look to see how organizations report on how they are addressing climate change risks within their business and the indicators we can follow to see their progress.

Research meetings are held weekly to discuss ideas and areas of investment.  In general we buy and hold stocks for long term. Economic factors like climate change or changes in government policies are taken into account when picking stocks. 

10.6. 補足情報 [任意]


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