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Garcia Hamilton & Associates, L.P.

PRI reporting framework 2020

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » (C) Implementation: Integration

C) 実施:ESG問題の統合

FI 10. Integration overview

10.1. ESGを従来の財務分析に統合するアプローチを説明してください。

ESG research is incorporated in our general research process. All firm-level ESG resources are available at the strategy level and have influenced our overall investment strategy since the Firm's inception (1988). GH&A’s internal resources consist of our initial screening process of the universe of eligible names for portfolio inclusion and only invest in high-quality securities. Within the corporate sector, we screen for the largest issuers and companies rated A- or better by 2 of the 3 rating agencies.  We then remove foreign companies/Yankees, alcohol, tobacco, gambling, and defense companies.  After applying this screen, our investable corporate universe shrinks to approximately 80 issuers.  All portfolios will hold either U.S. Treasuries, agency debentures, agency guaranteed MBS and high-quality corporate securities.

We utilize traditional financial and quantitative metrics analysis as well as qualitative assessments to identify ESG risks and opportunities and inform buy/sell/hold decisions. The Firm uses both internal and external resources to acquire data, information and analyses on sustainability factors facing our corporate universe.  GH&A collects historic and peer level data on our corporate securities including RobecoSAM, Sustainalytics Rank, ISS Quality Score, CDP Climate Score as well as Bloomberg ESG disclosure metrics.  The reports from these third-party providers assist the investment team in its overall evaluation process and provides a base to further study/research these securities for continued inclusion in our portfolio. Corporate securities are evaluated based on improving or declining adherence to PRI guidelines. If a security within our investment universe fails to maintain a positive ESG trajectory, it will receive diminished consideration for future investments.

ESG factors are addressed during the final phase of vetting investment ideas and potential holdings.

We first conduct our initial screening process of the universe of eligible issuers for portfolio inclusion and only invest in high-quality securities. Within the corporate sector, we screen for the largest issuers and companies rated A- or better by 2 of the 3 rating agencies. We then remove foreign companies/Yankees, alcohol, tobacco, gambling, and defense companies. After applying this screen, our investable corporate universe shrinks to approximately 80 issuers at the present time. All portfolios will hold either U.S. Treasuries, agency debentures, agency guaranteed MBS and/or high-quality corporate securities. For strategies that include corporate bonds, the corporate issue selection process incorporates a relative ranking of corporate issuers across the relevant ESG metrics for the relative industry within our high-quality universe. This ESG relative score is used to, not only identify issuers which maintain a high proprietary ESG internal score and trend, but, all things equal, initiate a positive screening methodology to discriminate among securities with comparable conventional relative values.

10.2. 投資する債券の各種類に対してESG統合アプローチをどのように調整するのか説明してください。

SSA

As stated in 10.1, our approach is fully integrated to each type of fixed income we invest in: SSA, Corporate (financial), Corporate (non-financial), and Securitized.

社債(金融)

As stated in 10.1, our approach is fully integrated to each type of fixed income we invest in: SSA, Corporate (financial), Corporate (non-financial), and Securitized.

社債(非金融)

As stated in 10.1, our approach is fully integrated to each type of fixed income we invest in: SSA, Corporate (financial), Corporate (non-financial), and Securitized.

証券化商品

As stated in 10.1, our approach is fully integrated to each type of fixed income we invest in: SSA, Corporate (financial), Corporate (non-financial), and Securitized.

10.3. 補足情報 [任意]


FI 11. Integration - ESG information in investment processes

11.1. ESG情報が、通常、投資プロセスの一部としてどのように使用されるのか記載してください。

当てはまるものをすべて選択してください
SSA
社債(金融)
社債(非金融)
証券化商品​
ESG分析をファンダメンタル分析に組み込んでいる
ESG分析が発行体の内部信用評価を調整するために利用される
ESG分析が予想財務業績および将来キャッシュフロー予測を調整するために利用される
ESG分析が発行体の同業グループと比較したランキングに影響する
発行体のESG債スプレッドおよび同セクター企業に対するその相対価値が、すべてのリスクが織り込まれているか否かを把握するために分析される
各種デュレーション/満期の発行体債券へのESG分析の影響が分析される。
感度分析およびシナリオ分析が、ベースケースとESG組み込み証券評価の差を比較する評価モデルに適用される
ESG分析が、ポートフォリオのウェイティング決定に組み込まれている
会社、セクター、国、通貨が、ESGエクスポージャーの変化およびリスク制限の違反についてモニタリングされる
ESGリスクが大きい証券についてポートフォリオのESGプロファイルが検討され、ベンチマークのESGプロファイルと比較して評価される
その他(具体的に記載してください)

11.2. 補足情報 [任意]


FI 12. Integration - E,S and G issues reviewed

12.1. 組織の統合プロセスでESG問題をどのように検討するか示してください。

E(環境)
S(社会)
G(ガバナンス)
SSA

E(環境)

S(社会)

G(ガバナンス)

社債(金融)

E(環境)

S(社会)

G(ガバナンス)

社債(非金融)

E(環境)

S(社会)

G(ガバナンス)

証券化商品

E(環境)

S(社会)

G(ガバナンス)

12.2. 組織の統合プロセスでE/S/G要因を検討する方法を詳しく説明してください。

SSA

The investment team monitors ESG risks on a daily basis and communicate material ESG events  regularly, including during our weekly investment meetings. The team also sits on an open trading floor, which cultivates continuous dialogue and communication on our universe of SSA securities and the integration of ESG factors in the investment process. We limit the securities we select for our portfolios to only high-quality issues. This includes U.S. Treasuries, agency debentures, 15- and 20-year agency-guaranteed MBS, and high-quality corporate securities. We do not invest in non-dollar denominated bonds, including Yankee bonds, high yield securities, credits rated below single “A” by two of the major rating agencies, zero-coupon debt, derivatives or leverage.

社債(金融)

The investment team monitors ESG risks on a daily basis and communicate material ESG events  regularly, including during our weekly investment meetings. The team also sits on an open trading floor, which cultivates continuous dialogue and communication on our universe of corporate (financial) securities and the integration of ESG factors in the investment process. We limit the securities we select for our portfolios to only high-quality issues. This includes U.S. Treasuries, agency debentures, 15- and 20-year agency-guaranteed MBS, and high-quality corporate securities. In the case of corporate bonds, we typically invest in issues that are in the index and have a minimum issue size of $1 billion with a quality rating of A- or better and a maturity of 10 years or less. We do not invest in non-dollar denominated bonds, including Yankee bonds, high yield securities, credits rated below single “A” by two of the major rating agencies, zero-coupon debt, derivatives or leverage.

社債(非金融)

The investment team monitors ESG risks on a daily basis and communicate material ESG events  regularly, including during our weekly investment meetings. The team also sits on an open trading floor, which cultivates continuous dialogue and communication on our universe of corporate (non-financial) securities and the integration of ESG factors in the investment process. We limit the securities we select for our portfolios to only high-quality issues. This includes U.S. Treasuries, agency debentures, 15- and 20-year agency-guaranteed MBS, and high-quality corporate securities. In the case of corporate bonds, we typically invest in issues that are in the index and have a minimum issue size of $1 billion with a quality rating of A- or better and a maturity of 10 years or less. We do not invest in non-dollar denominated bonds, including Yankee bonds, high yield securities, credits rated below single “A” by two of the major rating agencies, zero-coupon debt, derivatives or leverage.

証券化商品

The investment team monitors ESG risks on a daily basis and communicate material ESG events  regularly, including during our weekly investment meetings. The team also sits on an open trading floor, which cultivates continuous dialogue and communication on securitized issues and the integration of ESG factors in the investment process. We limit the securities we select for our portfolios to only high-quality issues. This includes U.S. Treasuries, agency debentures, 15- and 20-year agency-guaranteed MBS, and high-quality corporate securities. With mortgage-backed securities, we invest in agency guaranteed 15- and 20-year MBS and do not purchase any illiquid mortgage derivatives. We do not invest in non-dollar denominated bonds, including Yankee bonds, high yield securities, credits rated below single “A” by two of the major rating agencies, zero-coupon debt, derivatives or leverage.

12.3. 補足情報 [任意]


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