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Capital Group

PRI reporting framework 2020

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

アクティブ運用している債券におけるESGの組み入れ

実施プロセス

FI 01. Incorporation strategies applied

以下を記載してください。 (1)組織でアクティブ運用する債券投資について、どのESG組み入れ戦略や組み合わせを使用しているか(2)各戦略が適用されるアクティブ運用債券投資合計の割合(+/- 5%)
SSA
0 スクリーニングのみ
0 テーマのみ
100 統合のみ
0 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
0 3つの戦略すべての組み合わせ
0 組み入れ戦略を適用していない
100%
社債(金融)
0 スクリーニングのみ
0 テーマのみ
84.4 統合のみ
15.6 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
0 3つの戦略すべての組み合わせ
0 組み入れ戦略を適用していない
100%
社債(非金融)
0 スクリーニングのみ
0 テーマのみ
84.4 統合のみ
15.6 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
0 3つの戦略すべての組み合わせ
0 組み入れ戦略を適用していない
100%
証券化商品
0 スクリーニングのみ
0 テーマのみ
100 統合のみ
0 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
0 3つの戦略すべての組み合わせ
0 組み入れ戦略を適用していない
100%

01.2. 特定のESG組み入れ戦略を選択している理由と、使用する戦略の組み合わせを説明してください。

The investment process behind all of our strategies integrates ESG in a similar approach. Our rigorous investment process is holistic and long term in nature, hence we actively integrate ESG factors and do not separate them into a different category. We invest client assets according to the objectives of each fund or mandate.

In fixed income, we apply a ‘screen and engage’ process based on the UN Global Compact Ten Principles to several of our Luxembourg-domiciled UCITS corporate bond funds. This systematic integration of norms-based screening more explicitly demonstrates to our clients how we integrate engagement on controversies.

 

01.3. 補足情報 [任意]


FI 02. ESG issues and issuer research

02.1. 発行体に対する分析の一部として体系的に調査するESG要因を明示してください。

SSA
社債(金融)
社債(非金融)
証券化商品
環境データ
社会的データ
ガバナンスデータ

02.2. 入ってくるESG情報のフォーマットと主な情報源を明示してください。

この情報の提供者を説明してください
この情報の提供者を説明してください
この情報の提供者を説明してください
この情報の提供者を説明してください
この情報の提供者を説明してください

02.3. 使用されているESG情報を簡単に説明してください。ESG組み入れ戦略全体における情報源の違いを明らかにしてください。

We utilise a wide variety of research material; however, our primary source of information, be it environmental, social and governance (ESG) related or not, comes from our own in-house research. Investment professionals at Capital are sector specialists that have the depth and breadth of knowledge that enable them to make decisions that will enhance long-term value for all stakeholders, including our clients.

In many instances our investment professionals have been researching a particular sector for decades and have seen a number of business cycles. This longevity of experience and insight is juxtaposed to the decreasing tenures of CEO's for example and gives our investment analysts an advantage when meeting with management old and new.

Outside research, be it sell-side or specialist research, augments and supplements our understanding and views on sectors, companies, countries or issues. Our long-term lens enables our investment professionals to look past short-term issues whilst continually assessing the current and future prospects. We acknowledge the relevance of ESG factors in contributing to long-term returns and consider them in our research alongside the financial, operational or economic indicators that we use in coming to our investment decision.

02.4. 補足情報 [任意]

We have expanded our use of MSCI screens to their ESG ratings and controversies’ flags and reduced our use of sell-side research as part of the new MiFID 2 regulations. 


FI 03. Processes to ensure analysis is robust

03.1. 組織のESG調査プロセスの堅牢性を確保する方法を記載してください。

具体的に記載してください

          We are in the process of developing/ maintaining sector specific materiality frameworks.
        

03.2. ESG情報または分析を投資チーム内で共有する方法を記載してください。

          Sector specific or thematic ESG topics are discussed at the bi-monthly ESG calls with analysts and portfolio managers,
        

03.3. 補足情報 [任意]


A) 実施:スクリーニング

FI 04. Types of screening applied

04.1. 実施するスクリーニングの種類を記載してください。

当てはまる項目を全てを選択してください
社債(金融)
社債(非金融)
ネガティブ/ 排他的スクリーニング
ポジティブ/業界最高のスクリーニング
基準に基づくスクリーニング

04.2. 組織内でアクティブ運用している債券に適用するスクリーニングのアプローチを記載してください。

With the launch of our Capital Group Global Corporate Bond Fund (LUX) in 2018, we took the opportunity to test whether integration of the UN Global Compact principles could strengthen our investment process, encourage more focus internally on ESG and facilitate conversations with clients. This portfolio uses a third party provider, MSCI, to assess whether companies in our investment universe are in breach of any of the 10 principles set out in the UN Global Compact. These ‘flags’ (red, amber, green) are incorporated into our compliance and risk management systems on an ongoing basis and analysts are notified pre-trade on new issues or if we already hold the security. Importantly, this is not an exclusion-based approach but a screen and engage tool. The third party assessment acts as flag to prompt further investigation and provides additional research for the analyst to consider. Typically our own in-depth analysis will already have identified the issues and if we believe that the company has sufficiently addressed them or has been unfairly flagged, we may continue to hold the bond.

In 2019, we extended this process to Capital Group US Corporate Bond Fund (Lux) and Capital Group Euro Corporate Bond Fund (Lux).

 

04.3. 補足情報 [任意]


FI 05. Examples of ESG factors in screening process

05.1. スクリーニング条件に含まれているESG要因の例を挙げてください。

種類

ESG要因

スクリーニング

スクリーニングの説明

UNGC 7th Principle Breach - Businesses should support a precautionary approach to environmental challenges

A large multinational oil and gas company have continued to face long-standing controversy over allegations of responsibility for substantial environmental damage to the Niger River Delta. It is accused of poor maintenance of its pipelines, resulting in thousands of spills over the course of more than 50 years and is flagged for breaching Principle 7 of the UN Global Compact.

We have engaged with the company and encourage them to continue with their transparent approach to ESG issues. This company is very transparent about oil spills in Nigeria and has reported spill data since 1995, and makes available on its website a detailed accounting of all spills in Nigeria, including the cause, which are often caused by crude oil theft and sabotage. Despite not being responsible for these criminal acts, the company always moves as quickly as possible to clean up all spills, regardless of fault.

種類

ESG要因

スクリーニング

スクリーニングの説明

UNGC 3rd Principle Breach - Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining

A large multi-national retailer has been accused of engaging in anti-union practices, in an alleged effort to thwart union participation among employees, specifically in the US. From our engagements with the company’s management team, the company appears to be making demonstrable progress mitigating some of its social risks. The company completed a large investment in the U.S. that included increases in spending for associate wages, training, and education. Beyond labor relations issues, the company has demonstrated progress in addressing environmental and governance issues, which has helped to bolster its long-term franchise value. 

種類

ESG要因

スクリーニング

スクリーニングの説明

UNGC 7th Principle Breach - Businesses should support a precautionary approach to environmental challenges

A German healthcare and agriculture conglomerate has faced severe controversy related to the environmental impact of its genetically modified (GM) products, after its completion of acquiring a US agricultural products provider. We have engaged with the company on an ongoing basis, particularly following its acquisition. The company started to implement a series of measures to drive transparency and sustainability across its business. These measures are aimed to address questions and concerns the company has heard about its role in agriculture in the year following its acquisition. Based on recent investor events, the company appears to be more engaged with multiple stakeholders on its Crop Science business.  

05.2. 補足情報 [任意]


FI 06. Screening - ensuring criteria are met

06.1. 債券投資においてファンドスクリーニングの基準に違反がないことを確認するために組織が使用しているシステムを記載してください。

スクリーニングの種類
基準に基づくスクリーニング​

その他

          ESG (Compliance with UN Global Compact Principles) Screen and Engage tool. We screen companies in our investment universe for compliance with the UN Global Compact
        

06.2. 補足情報 [任意]


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。

Fixed income analysts at Capital are industry specialists with many years' experience following industry sectors. They consider ESG risks in the same way as any other factors which may affect the ability and willingness of an issuer to make payments on its debt. Our bottom-up research process relies on in-depth analysis helping us to avoid risks which may not have been recognized by other investors. An example of this is our consideration of transparency of information related to bribery controls. The lack of controls can be seen as an indicator with the potential to affect the risk profile of an investment, similarly the level of socio-economic stability can indicate if there is a risk to the incumbent regime. Our fixed income analysts work closely with their equity counterparts which enhances their access and contact with senior and operational management of companies.

For sovereign bond investors the aim is to assess and understand credit risk and identify securities issued by a government whose risk profile is improving. In our experience ESG issues are relevant for country analysis and can affect our evaluation of the risk premium for sovereign bonds. Valuing the risk premium requires an understanding of the extent to which ESG factors can impact a country and is particularly the case in emerging markets.

A true understanding of the ESG-related risk does not necessarily mean we will not invest in a particular country, but it helps us price the risk accordingly.

Our approach relies on our investment analysts identifying attractive investment opportunities such as countries on a trend of credit improvement and securities which may have a superior yield due to mispricing of risk. For example, the health and education spending by governments can be leading indicators of economic stability over the long-term and improving regulation of banking systems and anti-money laundering procedures can lower the risk profile.

Greater transparency generally translates to less risk. Therefore we also consider transparency around a company’s or country’s internal controls, processes, policies and procedures when making investment decisions.

As a global investor, we believe the impacts of climate change are broad and relevant, creating risks and opportunities across different sectors. With ESG integration, we embed our understanding of climate change into our investment decision making. This enables us to focus on the investment decisions where we see climate change and related issues as material financial factors.

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

For sovereign bonds our integrated approach relies on our investment analysts identifying attractive investment opportunities, such as countries on a trend of credit improvement and securities which may have a superior yield due to mispricing of risk. For example the health and education spending by governments can be leading indicators of economic stability over the long-term, and improving regulation of banking systems and anti-money laundering procedures can lower the risk profile. For sovereign bond investors the aim is to assess and understand credit risk and identify securities issued by a government whose risk profile is directionally improving. In our experience ESG issues are relevant for country analysis and can affect our evaluation of the risk premium for sovereign bonds. Valuing the risk premium requires an understanding of the extent to which ESG factors can impact a country and is particularly the case in emerging markets.

A true understanding of the ESG-related risk does not necessarily mean we will not invest in a particular country, but it helps us price the risk accordingly.

社債(金融)

We seek long-term value in the corporate bonds segment by devoting significant resources to internally generated, fundamental research aimed at identifying broad market trends, relative sector value, and credit-driven opportunities. We use our in-house research to find securities with valuations that compensate for the various risks (including repayment/credit risk, liquidity risk, and market risks, amongst others) entailed in holding them and then construct portfolios within a risk management framework that seeks to diversify sources of risk and return at the overall portfolio level.

Our corporate bond analysts are industry specialists with many years' experience following industry sectors. They work closely with their equity counterparts which enhances their access and contact with senior and operational management of companies. In coming to an investment decision we will consider transparency around controls, processes, policies and procedures as an indicator of risk, greater transparency generally translates to less risk.

社債(非金融)

See corporate section above.

証券化商品

See corporate section above.

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

For sovereign bond investors the aim is to assess and understand credit risk and identify securities issued by a government whose risk profile is improving. In our experience ESG issues are relevant for country analysis and can affect our evaluation of the risk premium for sovereign bonds. Valuing the risk premium requires an understanding of the extent to which ESG factors can impact a country and is particularly the case in emerging markets.

Our fixed-income investment analysts consider ESG risks in the same way as any other factors which may affect the ability and willingness of a government to make payments on its debt. Our bottom-up research process relies on in-depth analysis helping us to avoid risks which may not have been recognized by other investors. An example of this is our consideration of transparency of information related to bribery controls. The lack of controls can be seen as an indicator with the potential to affect the risk profile of an investment, similarly the level of socio-economic stability can indicate if there is a risk to the incumbent regime.

Our approach relies on our investment analysts identifying attractive investment opportunities such as countries on a trend of credit improvement and securities which may have a superior yield due to mispricing of risk. For example the health and education spending by governments can be leading indicators of economic stability over the long-term, and improving regulation of banking systems and anti-money laundering procedures can lower the risk profile.

社債(金融)

Our approach is to incorporate ESG risks and opportunities into investment decisions. Our team of more than 200 in-house equity and fixed income analysts and 100 portfolio managers are responsible for evaluating all relevant financial and non-financial factors – including ESG issues – as part of their fundamental research in order to generate long-term value, weighing risks in the context of the sector and geographical focus of their investments.

Within Capital Group, these individuals have the most in-depth knowledge, regular interaction with and understanding of companies, and we believe they are best placed to generate investment convictions on behalf of our clients. While our global network of more than 300 investment professionals are the frontline resources in considering ESG factors as part of their overall evaluations, they are assisted by the ESG team and the Governance and Proxy team.

We believe deep on-the-ground research and systematic corporate engagement is the key to sound long-term investing. As part of our investment process, we continually review the sectors and the companies in which we invest, and this includes the assessment of ESG-related risks and opportunities. Where material, these assessments will form a part of our valuations. In terms of corporate engagement, we maintain a robust dialogue with key decision-makers for our investment holdings. Our fixed income team benefits from the strong relationships and access to management through their equity counterparts.

社債(非金融)

Please see above.

証券化商品

Please see above.

12.3. 補足情報 [任意]


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