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MetallRente GmbH

PRI reporting framework 2020

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

MetallRente has a long-standing dedication towards Responsible Investment (RI) and the consideration of ecological, social and good governance criteria (ESG). Since the founding of our multi-employer pension organization in 2001, the commitment, that all assets fully managed on our behalf must take responsible investment principles into account, is included in our memorandum of association.

MetallRente offers a broad range of different pension schemes for employers to choose, including direct insurance, benevolent funds and the MetallRente pension fund. From all our pension plans, assets from two plans invest to varying degrees in the MetallRente.Fondsportfolio, a portfolio of funds exclusively set up for our organization, in which assets are fully managed on our behalf. Hence, our RI and ESG strategy and all policies following our responsible investment approach only apply to the assets in our MetallRente.Fondsportfolio.

The implementation of ESG considerate investment refers to all steps of the asset management process: starting with our strategic asset allocation (SAA), actual investment decisions and portfolio construction up to reports that allow for continuous monitoring and portfolio optimization.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

MetallRente follows internationally acknowledged definitions of ESG criteria. As an example, we consider the standards of the International Labor Organization (ILO) as minimum “social” criterion for our investment decisions.

The basis for our responsible investment approach is the consensus between both our shareholders, IG Metall and Gesamtmetall. This includes that MetallRente is committed to an economical implementation of ESG in our investment, following a positive cost-benefit ratio and avoiding ESG to be a cost driver, which would interfere with the interests of our customers and our founding principles.

Key elements of our responsible investment approach include

1) Company focus, leading to a high equity exposure in our strategic asset allocation as well as in our actual portfolio
2) Negative screening strategy to exclude controversial weapons, e.g. cluster munition
3) Best-in-class screening
4) Norms-based screening, i.e. applying ILO standards to investment decisions
5) Integration Strategy, which means that ESG criteria are an integral part of the investment decision process

01.6. Additional information [Optional].

          MetallRente has issued an updated ESG policies and strategy paper in 2019, also available on our website in a new section.
        

SG 01 CC. Climate risk (Private)


SG 02. Publicly available RI policy or guidance documents

 

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

URL/Attachment

02.3. Additional information [Optional].


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.3. Additional information. [Optional]

MetallRente has issued an updated ESG policies and strategy paper in 2019 and will work further to provide more detail i.e. on the management of conflicts of interests. 


SG 04. Identifying incidents occurring within portfolios

04.1. Indicate if your organisation has a process for identifying and managing incidents that occur within investee entities.

04.2. Describe your process on managing incidents

As our asset managers apply standardized analysis and reporting tools to all listed equity, we react to a change of ESG ratings of all companies, we invest in – up to cutting investments into companies, that receive poor(er) ESG ratings than before. 


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