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Lifeyrissjodur Verzlunarmanna (Pension Fund of Commerce)

PRI reporting framework 2020

You are in Strategy and Governance » Asset class implementation not reported in other modules

Asset class implementation not reported in other modules

SG 16. ESG issues for internally managed assets not reported in framework

Describe how you address ESG issues for internally managed assets for which a specific PRI asset class module has yet to be developed or for which you are not required to report because your assets are below the minimum threshold.

Asset Class

Describe what processes are in place and the outputs or outcomes achieved

Fixed income - Corporate (non-financial)

The portfolio of internal managed fixed income corporate bonds are less than 5% of the total AUM. The issuers are domestic companies, which the pension funds knows well and are not aware of any material breach regarding ESG issues. Thus we do scrutiny of ARs and meet with the management on ad hoc basis. Accordingly, the knowledge of the company is good. LV invested in the first green bond issues in ISK, the municipality of city of Reykjavik and OR and has subsequently invested in several Icelandic green bonds.

Private equity

Currently PE is not being managed in-house at LV.

Cash

Allocation to cash is only minimal and for liquidity purpose, in banks with good supervision from correspondng autorities. 

16.2. Additional information [Optional].


SG 17. ESG issues for externally managed assets not reported in framework

17.1. Describe how you address ESG issues for externally managed assets for which a specific PRI asset class module has yet to be developed or for which you are not required to report because your assets are below the minimum threshold.

Asset Class

Describe what processes are in place and the outputs or outcomes achieved

Fixed income - Securitised

Externally managed securitised FI of the total fund is only 1% of the fund.   Investment proposals from managers are obliged to fill out LV's DDQ which reflect an increased focus on ESG related issues.

Private equity

The pension fund informs the assets management companies in question that the fund is a member of UN-PRI and a significant part of the evaluation process (e.g. DDQ) focuses on ESG related issues.  We have now started to put ESG provisions into side-letters of external PE managers asking them to recognize our position as a UNPRI signatory and to increase their awareness of the importance of ESG related issus in the investment process.

Infrastructure

The pension fund informs the assets management companies in question that the fund is a member of UN-PRI and a significant part of the evaluation process (e.g. DDQ) focuses on ESG related issues.  We have now started to put ESG provisions into side-letters of external PE managers asking them to recognize our position as a UNPRI signatory and to increase their awareness of the importance of ESG related issus in the investment process.

Money market instruments

Currently we don't have an ESG overlay on money market instruments but have started screening on ESG rated Money market funds with the view of replacing our currenty MM funds.

17.2. Additional information.


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