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BancoPosta Fondi SGR

PRI reporting framework 2020

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

ESG incorporation in actively managed fixed income

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

BancoPosta Fondi SGR establishes practical guidelines for the screening strategy. Despite that, monitoring on ESG score is regularly carried out for both single portfolio company and portfolio-wide analysis. The former allows to evaluate the ESG profile of an issuer, while the latter to factor specific ESG considerations in investment decisions. The current exclusion criteria apply both for SSA and Corporate Non-financial investments, but not for the Corporate Financial ones. The integration strategy is used alike for all fixed income investments as the issuer's ESG profile is evaluated and then regularly verified and monitored. 

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]


(A) Implementation: Screening

FI 04. Types of screening applied

04.1. Indicate the type of screening you conduct.

Select all that apply
SSA
Corporate (non-financial)
Negative/exclusionary screening
Positive/best-in-class screening
Norms-based screening

04.2. Describe your approach to screening for internally managed active fixed income

Exclusionary screening is based upon the involvement of issuers in controversial industries where BancoPosta Fondi SGR avoids investment activities. 

04.3. Additional information. [Optional]


FI 05. Examples of ESG factors in screening process (Not Completed)


FI 06. Screening - ensuring criteria are met

06.1. Indicate which systems your organisation has to ensure that fund screening criteria are not breached in fixed income investments.

Type of screening
Checks
Negative/exclusionary screening

06.2. Additional information. [Optional]


(C) Implementation: Integration

FI 10. Integration overview

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

The approach to integrating ESG into BancoPosta Fondi SGR's investment-process relies upon the ESG profiles provided by external info-providers.

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

SSA

BancoPosta Fondi SGR's ESG integration approach is slightly adjusted according to the fixed income SSA asset types. 

Corporate (financial)

BancoPosta Fondi SGR's ESG integration approach for corporate financial investments follows the general guidelines of its RI policy, that is about updating, verifying and in-depth analysis (if needed) of issuers' ESG profile. According to the policy's guidelines for sensitive sectors, integration of ESG factors consists of monitoring the ESG profile of issuers operating in activities controverting human rights laws and standards that meet certain criteria. Potential issues concerning a specific issuer are addressed accordingly and when it doesn't lead to improvement, the Board of Directors is informed and required to evaluate whether to keep or quit the investment.  

Corporate (non-financial)

BancoPosta Fondi SGR's ESG integration approach for corporate non-financial investments draws from the RI policy's general guidelines and the sensitive sectors policy's guidelines. According to the latter, integration of ESG factors consists of monitoring the ESG profile of issuers operating in fossil fuels, animal testing and activities controverting human rights laws and standards that meet certain criteria. Potential issues concerning a specific issuer are addressed accordingly and when it doesn't lead to improvement, the Board of Directors is informed and required to evaluate whether to keep or quit the investment.  

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
SSA
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
SSA

Environmental

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.

SSA

ESG factors are integrated by means of overall ESG score at both company and portfolio level. Those scores are then incorporated into the fundamental analysis that is usually carried out. 

Corporate (financial)

ESG factors are integrated by means of overall ESG score at both company and portfolio level. Those scores are then incorporated into the fundamental analysis that is usually carried out.

Corporate (non-financial)

ESG factors are integrated by means of overall ESG score at both at company and portfolio level. Those scores are then incorporated into the fundamental analysis that is usually carried out.

12.3. Additional information.[OPTIONAL]


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