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Aeon Investment Management (Pty) Ltd

PRI reporting framework 2020

You are in Strategy and Governance » Governance and human resources

Governance and human resources

SG 07. RI roles and responsibilities

07.1. Indicate the internal and/or external roles used by your organisation, and indicate for each whether they have oversight and/or implementation responsibilities for responsible investment.

Roles

Select from the below internal roles

07.2. For the roles for which you have RI oversight/accountability or implementation responsibilities, indicate how you execute these responsibilities.

We use numerous stockbrokers who provide us with ESG research. We are also currently in the process of developing and subsequently refining our own ESG Scorecard Model; however, we make the ultimate decisions in identifying key ESG drivers and issues.

07.3. Indicate the number of dedicated responsible investment staff your organisation has.

7 Number

07.4. Additional information. [Optional]

Public policy influence is a core activity of our ESG activities which is why all staff members are ultimately responsible for ESG integration. In the 2019 Aeon Investment Management ESG Report, we have a feature on the staff at Aeon Investment Management and how they integrate ESG into their roles. The Report is available on request.


SG 07 CC. Climate-issues roles and responsibilities

07.5 CC. Indicate the roles in the organisation that have oversight, accountability and/or management responsibilities for climate-related issues.

Board members or trustees

Chief Executive Officer (CEO), Chief Investment Officer (CIO), Chief Risk Officer (CRO), Investment Committee

Portfolio managers

Investment analysts

Dedicated responsible investment staff

External managers or service providers

07.6 CC. For board-level roles that have climate-related issue oversight/accountability or implementation responsibilities, indicate how these responsibilities are executed.

The board and the Chief Investment Officer are responsible for the oversight/accountability of the climate-related issues. The Chief Investment Officer (together with the Investment team) is responsible for the assessment and management of climate-related issues. The board is informed on climate-related issues (analysis, evaluation and action plan) on a quarterly basis during Aeon Investment Management’s quarterly meetings. The board then evaluates the identified issues and depending on the severity of the issues, provides insight and/or suggestions.

07.7 CC. For management-level roles that assess and manage climate-related issues, provide further information on the structure and processes involved.

The Investment team (Chief Investment Officer, Portfolio Managers and analysts) is responsible for the assessment and management of climate-related issues. The team has the accountability of integrating responsible investment into the investment philosophy and thus the entire team report to the board during the company’s general meetings.

Climate-related issues are researched using both internal and external research sources. We also utilise several quantitative tools such as The Paris Agreement Capital Transition Assessment (“PACTA”) tool, The Transition Pathway Initiative (“TPI”), 2 Degrees Scenario Analysis etc. It should be noted that these PRI-recommended tools do however have limitations. Aeon Investment Management is mainly invested in South African stocks. The recommended tools do not cover a significant number of companies operating in developing markets e.g. South African-based companies and thus we are only able to obtain a limited amount of information on the analysis of these companies. Companies also only disclose a limited amount of environmental metrics to the public thus further increasing the limitations to the analysis. Aeon Investment Management has raised these issues with the research providers.


SG 08. RI in performance management, reward and/or personal development

08.1. Indicate if your organisation’s performance management, reward and/or personal development processes have a responsible investment element.

Board members/Board of trustees

08.1b. RI in personal development and/or training plan

08.2. Describe any activities undertaken during the reporting year to develop and maintain Board members’ skills and knowledge in relation to responsible investment.

  • On the job training and experience.
  • Attendance of ESG-related seminars and conferences
  • All new staff have to commit to ESG integration into the investment process and philosophy. This is a KPI used for all staff members when conducting performance appraisals.

Chief Executive Officer (CEO), Chief Investment Officer (CIO), Chief Operating Officer (COO), Investment Committee

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Portfolio managers

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Investment analysts

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Dedicated responsible investment staff

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

08.3. Provide any additional information on your organisation’s performance management, reward and/or personal development processes in relation to responsible investment.

ESG is an integral part of the investment process. As part of our quarterly performance appraisals, ESG contribution and analysis are taken into account and ESG-related KPIs are incorporated into each analyst and Portfolio Manager's appraisal. Ultimately the investment performance of the funds is the key determinant of performance incentives.


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