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PriorNilsson Fonder

PRI reporting framework 2020

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

(C) Implementation: Integration

FI 10. Integration overview

10.1. Describe your approach to integrating ESG into traditional financial analysis.

A responsible approach to investments constitute an integral part of the investment decision-making process at PriorNilsson. The portfolio managers are treating company, sector and country ESG data in the financial analysis in the same way as and alongside other publically available data on the firm. This ESG data is sourced from the media, external reports, annual reports, CSR reports, equity research reports or any publically accessible information source.

Practically, ESG factors are integrated into the investment decision-making process by e.g., evaluating the risks and opportunities of the investment based on trends. This could be business risk associated with the shift from fossil fuels. Such trends might lead to new legislation that affects a company’s future earnings, need for new investments and re-structuring costs.

10.2. Describe how your ESG integration approach is adapted to each of the different types of fixed income you invest in.

Corporate (financial)

A responsible approach to investments constitute an integral part of the investment decision-making process at PriorNilsson. The portfolio managers are treating company, sector and country ESG data in the financial analysis in the same way as and alongside other publically available data on the firm. This ESG data is sourced from the media, external reports, annual reports, CSR reports, equity research reports or any publically accessible information source.

Practically, ESG factors are integrated into the investment decision-making process by e.g., evaluating the risks and opportunities of the investment based on trends. This could be business risk associated with the shift from fossil fuels. Such trends might lead to new legislation that affects a company’s future earnings, need for new investments and re-structuring costs.

Corporate (non-financial)

A responsible approach to investments constitute an integral part of the investment decision-making process at PriorNilsson. The portfolio managers are treating company, sector and country ESG data in the financial analysis in the same way as and alongside other publically available data on the firm. This ESG data is sourced from the media, external reports, annual reports, CSR reports, equity research reports or any publically accessible information source.

Practically, ESG factors are integrated into the investment decision-making process by e.g., evaluating the risks and opportunities of the investment based on trends. This could be business risk associated with the shift from fossil fuels. Such trends might lead to new legislation that affects a company’s future earnings, need for new investments and re-structuring costs.

10.3. Additional information [OPTIONAL]


FI 11. Integration - ESG information in investment processes

11.1. Indicate how ESG information is typically used as part of your investment process.

Select all that apply
Corporate (financial)
Corporate (non-financial)
ESG analysis is integrated into fundamental analysis
ESG analysis is used to adjust the internal credit assessments of issuers.
ESG analysis is used to adjust forecasted financials and future cash flow estimates.
ESG analysis impacts the ranking of an issuer relative to a chosen peer group.
An issuer`s ESG bond spreads and its relative value versus its sector peers are analysed to find out if all risks are priced in.
The impact of ESG analysis on bonds of an issuer with different durations/maturities are analysed.
Sensitivity analysis and scenario analysis are applied to valuation models to compare the difference between base-case and ESG-integrated security valuation.
ESG analysis is integrated into portfolio weighting decisions.
Companies, sectors, countries and currency and monitored for changes in ESG exposure and for breaches of risk limits.
The ESG profile of portfolios is examined for securities with high ESG risks and assessed relative to the ESG profile of a benchmark.
Other, specify in Additional Information

11.2. Additional information [OPTIONAL]


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

12.1. Indicate the extent to which ESG issues are reviewed in your integration process.

Environment
Social
Governance
Corporate (financial)

Environmental

Social

Governance

Corporate (non-financial)

Environmental

Social

Governance

12.2. Please provide more detail on how you review E, S and/or G factors in your integration process.

Corporate (financial)

ESG risk and opportunities are a natural element in PriorNilsson's investment decision-making process. This process integrates business risk and opportunities as well as mega trends towards sustainability in our world and society at large.

A firm’s exposure to ESG factors can provide both a risk and an opportunity that is assessed the same way as other business-related information. The firm’s exposure will affect its valuation and the portfolio manager’s belief on its future earnings potential.

These factors are reviewed occassionally, but at least annually, as the investment environment is changing. Because the ESG factors are naturally integrated into the portfolio manager’s daily tracking of the holdings and investment universe, the factors are occassionally being reviewed alongside other factors in the space.

Corporate (non-financial)

ESG risk and opportunities are a natural element in PriorNilsson's investment decision-making process. This process integrates business risk and opportunities as well as mega trends towards sustainability in our world and society at large.

A firm’s exposure to ESG factors can provide both a risk and an opportunity that is assessed the same way as other business-related information. The firm’s exposure will affect its valuation and the portfolio manager’s belief on its future earnings potential.

These factors are reviewed occassionally, but at least annually, as the investment environment is changing. Because the ESG factors are naturally integrated into the portfolio manager’s daily tracking of the holdings and investment universe, the factors are occassionally being reviewed alongside other factors in the space.

12.3. Additional information.[OPTIONAL]


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