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PriorNilsson Fonder

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.
Corporate (financial)
0 Screening alone
0 Thematic alone
0 Integration alone
100 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)
0 Screening alone
0 Thematic alone
0 Integration alone
100 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.

Our ESG research supplier is performing bi-annually norm-based screenings of our portfolio companies. Our criteria for exclusion (based on international principles and frameworks) and black lists are also narrowing our investment universe ex-ante. Our fundamental analysis of investment opportunities then integrates and weigh in ESG factors into the normal investment decision-making process.

In the governance aspect of the ESG criteria we're looking at the firm from a complete stakeholder perspective. This means that we're taking both the interest of the equity holders but also the firm's creditors. When firms are taking on excessive leverage they might be acting in the interest of equity shareholders but not of their creditors and employees that might not be compensated for the risk of financial distress. This point is of course crucial in the financial analysis prior to making fixed income investments.

These screenings and integration on ESG factors lead us to make better risk-adjusted investment decisions both by mitigating the risk in our investment universe and in our holdings.

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.

          Our investment team is fairly small and works intimately with eachother. All ESG information and/or analysis is shared openly in the operating environment.
        

03.3. Additional information. [Optional]

Occasionally, we are provided with data on ESG factors from our research providers. This is, however, not a standard item in all equity research. Mostly because our universes cover companies where ESG factors are not deemed to be material.


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