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MAKALANI MANAGEMENT COMPANY (PTY) LTD

PRI reporting framework 2020

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » Implementation processes

Implementation processes

FI 01. Incorporation strategies applied

Indicate (1) Which ESG incorporation strategy and/or combination of strategies you apply to your actively managed fixed income investments; and (2) The proportion (+/- 5%) of your total actively managed fixed income investments each strategy applies to.
SSA
5 Screening alone
0 Thematic alone
95 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (financial)
5 Screening alone
0 Thematic alone
95 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (non-financial)
5 Screening alone
0 Thematic alone
95 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%

01.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

We have a screen which takes into account major global risks and/or activities such as:

  • Production or trade in ozone depleting substances
  • Drift net fishing in the marine environment using nets in excess of 2.5 kilometres in length.

(These are just two examples).  Please note these screens do not automatically lead to a decision not to invest but instead helps to flag major risks.  

Beyond this, the team has developed an ESG management systems which assess potential investors with over 150 environmental, social and governance factors to determine risks and opportunities for that particular investment.  Post investment, the team will then use this opportunity to engage with the company (or issuer), and the wider ecosystem, to improve/mitigate any ESG risks identified.  

We believe that the South African (and pan-African) opportunity set to be narrow compared to say Europe or the USA, and as such have decided to focus on an integration and engagement based approach to ESG integration.  On the other hand, an exclusion (or negative screening) based approach would drastically reduce the South African (and pan-African) fixed income opportunity set, and make efficient portfolio construction a challenge.

01.3. Additional information [Optional].


FI 02. ESG issues and issuer research (Private)


FI 03. Processes to ensure analysis is robust

03.1. Indicate how you ensure that your ESG research process is robust:

03.2. Describe how your ESG information or analysis is shared among your investment team.

03.3. Additional information. [Optional]


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