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Jupiter Asset Management

PRI reporting framework 2020

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You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes

実施プロセス

LEI 01. Percentage of each incorporation strategy

01.1. 以下を記載してください。(1)組織でのアクティブ運用上場株式にどのESG組み入れ戦略や組み合わせを使用しているか(2)アクティブ運用している上場株式の戦略または戦略の組み合わせ別内訳

ESG組み入れ戦略 (当てはまるものをすべてお選びください)
アクティブ運用される上場株式に戦略が適用される割合 (推定 +/- 5%)
96.5 %
アクティブ運用される上場株式に戦略が適用される割合 (推定 +/- 5%)
3.5 %
アクティブ運用している上場株式の合計 172%

01.2. 組織が実施しているESG組み入れアプローチ、および、特定のESG組み入れ戦略を選択している場合はその理由を説明してください。

We employ a fund manager led ESG integration approach, centred on materiality and delivering better investment outcomes for our clients. This includes a responsibility to seek to understand material environmental, social and governance (‘ESG’) risk factors that might affect the outcome of an investment. The challenge for us is to understand the materiality of these risks, in the same way that we do with other risk factors via traditional financial analysis, and to encourage companies to manage these risks appropriately. ESG incorporation plays a vital role in developing our understanding of companies across all our equity strategies, both prior to and once invested, making informed decisions and representing our client's interests. As active managers with a long-term outlook, engagement with companies plays a significant role in our incorporation strategy. 

Jupiter’s approach to ESG incorporation is fund manager led and this gives the fund managers the flexibility to integrate their ESG analysis into their investment approach. As active managers running high conviction portfolios, clients entrust our fund managers to make investment decisions and monitor assets to generate sustainable long-term returns. Therefore, in our view it is only right that our fund managers take the lead on stewardship and that accountability is not delegated to internal parties or outsourced. This does not mean we rely solely on internal perspective. By its very nature, stewardship encompasses a broad agenda where activity with a single company can be spread over multiple periods and various investment themes combine into complex scenarios. Therefore, understanding client priorities, the use of collective engagement, third-party research and data and connectivity to investor organisations and industry bodies inform our overall stewardship strategy.

However, at Jupiter, the fund manager is the ultimate investment decision maker. They are best placed to assimilate this information and drive the agenda forward. This leadership approach has bolstered the stewardship culture within our firm. That is, specific engagement undertaken by our investment professionals with non-executive directors to cover long-term issues such as alignment, stakeholders, culture, corporate leadership and board effectiveness has helped our fund managers gain additional insights and refine their own knowledge. The internal expectations around engagement have provided a platform for fund managers to share knowledge with colleagues and boost their own skills. This development has contributed to our stewardship culture over the long term. Because our fund managers and GS Team work together on engagements, investee companies receive a clear and informed message when interacting with Jupiter.

With the exception of Jupiter’s dedicated sustainability fund range and our firmwide prohibition on investing in companies involved in cluster munitions, our funds do not operate an ex-ante exclusion policy towards any sectors or companies. However, as stated above the fund managers carefully consider ESG risk factors pertaining to a company prior to making an investment decision.

In addition, Jupiter has amongst the first and longest-running environmental and sustainable-focussed investment strategies in the world. The underlying investment philosophy remains unchanged: to identify long-term investment opportunities in global companies that – at their core – provide solutions to sustainability challenges. In our opinion, the growing pressure of economic growth on the environment, and the increasingly pivotal role that sustainability issues play in global development, mean that this philosophy is more relevant to investors today than ever before.

 

01.3. ESG組み入れ戦略の組み合わせを使用して資産を運用している場合、ESG戦略の組み合わせをどのように使用しているかを簡単に説明してください。 [任意]

We employ a combination of strategies across two sets of fund ranges:

Screening and integration: We have a requirement to exclude companies involved in the production of cluster munitions across our SICAV fund range and we have taken the decision to apply this exclusion across all our internally managed AUM.

Screening and thematic: Our Environmental and Responsible thematic funds are subject additionally to screens to ensure that they do not invest in proscribed areas, including companies involved in the production or sale or armaments, tobacco, alcohol, nuclear generated electricity, pornography or gambling services.


LEI 02. Type of ESG information used in investment decision

02.1. 組織でESG組み入れ戦略に使用しているESG情報およびこの情報の提供者を記載してください。

ESG情報の種類

この情報の提供者を選択してください

この情報の提供者を選択してください

この情報の提供者を選択してください

この情報の提供者を選択してください

この情報の提供者を選択してください

この情報の提供者を選択してください

02.2. ブローカーに対しESG調査結果を提供するよう奨励しているかどうかについて記載してください。

02.3. ブローカーに対しどのように奨励しているかを記載してください。

Recognition of ESG-related research is incorporated within our process for evaluating and incentivising broker contribution and service. We support ESG research providers both by directing incentives and within our voting activities.

02.4. 補足情報 [任意]


LEI 03. Information from engagement and/or voting used in investment decision-making

03.1. ESGへのエンゲージメントや(委任状による)議決権行使から得られる情報を投資の意思決定に利用できるプロセスが組織にあるかどうかを記載してください。

03.2. 補足情報 [任意]

 

As active managers running high conviction portfolios, clients entrust our fund managers to make investment decisions and monitor assets to generate sustainable long-term returns. Therefore, in our view it is only right that our fund managers take the lead on stewardship and that accountability is not delegated to internal parties or outsourced. When engaging with companies we seek to be aligned in our views, putting our clients’ interests in the strongest position. Investee companies tell us that they often receive inconsistent signals from different arms of asset management houses (i.e. ESG teams and investment teams). In contrast, our unified approach means there is no risk of confused messaging. Our investee companies receive a coordinated position from us throughout engagement dialogue, including voting decisions. This consistent and long-standing approach contributes to increased awareness of stewardship issues among our fund managers. In turn, this approach contributes to internal culture and leads to clear communication of our responsibilities to clients.


A) 実施:スクリーニング

LEI 04. Types of screening applied

04.1. 組織内でアクティブ運用している上場株式に適用するスクリーニングの種類を記載し、説明してください。

スクリーニングの種類

スクリーニング実行者

説明

1) The Jupiter Global SICAV Fund may not invest in any company involved in the production of cluster munitions. This is also applied to our internally managed equity assets. 

2) In addition, our Environmental and Responsible thematic funds are subject to screens to ensure that they avoid investments in activities and products that include manufacturing of armaments, alcoholic drinks or tobacco products; publication of pornographic material; generation of nuclear power; and operation of gambling facilities and services.

スクリーニング実行者

説明

The strategy is focused on seven, Taxonomy-aligned sustainable solution investment themes: Circular Economy, Clean Energy, Water, Mobility, Energy Efficiency, Sustainable Agriculture, Nutrition & Health and Environmental Services.

スクリーニング実行者

説明

We monitor our portfolios for involvement in controversial business activities and potential ethical controversies, including violations of global norms including the UN Global Compact Principles. We subscribe to RepRisk, a specialist ESG research provider which uses news and third-party public sources to identify potential issues. The tool is used by fund managers and the GS team to identify potential issues which can then drive company engagement or other investment decisions, such as potentially exiting our position. 

04.2. スクリーニング基準が変更された場合に顧客や受益者に通知する方法について説明してください。

We will notify institutional clients that the screening criteria is under review and there is likely to be change. We think it is important to communicate the possibility of change at the earliest opportunity and not simply wait for the outcome.  We will also endeavour to articulate reasons behind the potential change, for instance evolution of industry best practice. If a change is enacted, then we will communicate this through our various client channels.


LEI 05. Processes to ensure screening is based on robust analysis

05.1. スクリーニングが徹底した分析に基づいていることを確実にするために、組織が使用しているプロセスを選択してください。

05.2. ESGスクリーニング戦略の一環で包括的なESG調査の対象となるアクティブ上場株式ポートフォリオの割合を示してください。

05.3. 第三者のESG評価がスクリーニング目的で更新される頻度を示してください。

05.4. 組織のESGスクリーニングを構築するための組織内リサーチを精査する頻度を示してください。

05.5. 補足情報 [任意]

Screening is based both on desk-based research and company  engagement activities. Company reports are reviewed to determine company activities. For the screened environmental thematic funds, any company that derives over 10% of its turnover from any one of these activities will not be invested in:

  1. Companies that manufacture or sell armaments. Although armaments may be used for self-defence or peace keeping, it is frequently difficult to determine their final use, so we avoid companies with involvement in this area.
  2. Alcoholic drinks: Companies that manufacture or sell alcoholic drinks, on account of the problems caused by alcohol abuse, ranging from ill health to domestic violence to road accidents.
  3. Companies that manufacture or sell tobacco products, due to the health problems associated with smoking.
  4. Companies that publish, print or distribute pornography, including on the internet, due to links with sexual discrimination and concerns over its corrupting influence on behaviour.
  5. Nuclear power: Companies that generate nuclear power or build nuclear power plants, on account of the continued risks from accidental discharges of radioactive substances and problems with the disposal of nuclear waste.
  6. Companies that operate betting or gambling facilities, due to concerns over the potentially addictive nature of gambling and its consequent impact upon the individual and their family, particularly those in lower income groups. 

In addition, we avoid companies that conduct or commission animal testing for cosmetic or toiletry purposes.  We also pay particular attention to issues such as sustainable sourcing of food and biotechnologies.

As an extra level of assurance, ESG profile including details of revenue from different  company activities are source from research provider Sustainalytics.


LEI 06. Processes to ensure fund criteria are not breached

06.1. ファンド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プロセスを記載してください。

06.2. ファンドのスクリーニング基準に対する違反が判明した場合、これらの違反を是正するために従うプロセスを説明してください。

If an investee company fails an assessment while it is actually held in the portfolio, the fund manager is obliged to sell the holding at the earliest opportunity that is in the best interest of the investors, at most within three months. Removals from the Approved List and divestments form part of the review process undertaken by Jupiter's Compliance Department.

This information will also be transferred to the Stewardship Committee.

06.3. 補足情報 [任意]


B) 実施:テーマ

LEI 07. Types of sustainability thematic funds/mandates

07.1. 組織が運用している、サステナビリティをテーマとするファンドやマンデートの種類を記載してください。

07.2. 組織でのサステナビリティをテーマとしたファンドのプロセスについて説明してください。 [任意]

We launched one of the UK's first green unit trusts in 1988, the Jupiter Ecology Fund, and since then we have been at the forefront of investing in this sector. This has enabled us to develop a leading knowledge of environmental and social issues as well as adding significant value for investors.

With concern around environmental issues growing, we believe that our specialist environmental products offer an opportunity for clients to allocate their capital to businesses which are becoming increasingly intrinsic to global structural growth. As the world population continues to grow and develop, the world needs to be more intelligent about the way in which we use our resources and find alternatives for those which are finite and increasingly constrained, such as fossil fuels, land and water.

The Jupiter Ecology Strategy was amongst the first sustainable investment strategies in the world having been established in 1988, just a year after the term ‘sustainable development’ was first coined. The underlying investment philosophy remains unchanged: to identify long-term investment opportunities in global companies that – at their core – provide solutions to sustainability challenges. In our opinion, the increasingly pivotal role that sustainability issues play in global development means that this philosophy is more relevant to investors today than ever before.

In essence, companies focused on providing solutions in activities such as climate change mitigation, pollution prevention, the circular economy, and the sustainable use and protection of water and natural ecosystems, present multi-decade investment opportunities. The strategy therefore has a strong investment alignment to the activities defined under the European Taxonomy for sustainable investment.  The Jupiter Ecology Strategy offers clients focused and specialist exposure to these companies, generating both positive investment returns and sustainability impacts.

The Strategy embodies a long-term investment horizon. This starts with the process of maintaining the proprietary universe of sustainable solution companies. Within this, companies are categorized into seven inter-related solution themes: Circular Economy, Clean Energy, Water, Mobility, Energy Efficiency, Sustainable Agriculture, Nutrition & Health and Environmental Services.

Each potential holding is assessed by Jupiter's Sustainability Analysts to monitor its ethical and environmental performance to ensure it fits within the Funds' individual screening criteria. In addition, Our Stewardship Committee - chaired by the CIO - reviews the companies held by our thematic Environmental and Responsible investment funds to ensure that they are consistent with relevant environmental, socially responsible and ethical criteria sets. The Committee meets at least three times a year providing a forum for discussion of contentious issues deemed to impact approval decisions, as well as environmental and social matters raised by the Sustainability Analysts that are deemed material to company performance.


C) 実施: 統合

LEI 08. Review ESG issues while researching companies/sectors

08.1. E・S・Gの各要因が投資分析の一環として体系的に調査されている、アクティブ運用の上場株式ポートフォリオの割合を記載してください。

ESG問題

影響を受ける割合
E(環境)

E(環境)

S(社会)

S(社会)

コーポレートガバナンス

コーポレートガバナンス

08.2. 補足情報 [任意]

Our fund managers and analysts carefully consider ESG risk factors pertaining to a company prior to making an investment decision. This process considers potential investee companies on a case-by-case basis, with due regard to the sectors in which they operate. Our environmental, social and governance analysis covers a broad range of factors developed over many years of engaging with investee companies on stewardship matters across a broad range of markets. This framework draws on the expertise of our individual fund managers and their individual stewardship approaches with input from Jupiter’s GS team. These factors are also informed by our engagements with industry partners and standard setting bodies, such as the UN PRI and the Financial Reporting Council, and third-party data and research providers. The CIO plays an oversight role in assessing how our fund managers integrate ESG within their investment process. Further oversight is provided by the Stewardship Committee which provides a forum for considering material ESG risks and assessing the outcomes and efficacy of our engagement around these risks.

 

 

  


LEI 09. Processes to ensure integration is based on robust analysis

09.1. ESG統合が徹底した分析に基づいていることを確実にするために、組織が使用しているプロセスを記載してください。

09.2. 組織の統合戦略の一環で包括的ESG調査の対象になるアクティブ運用上場株式の割合を記載してください。

09.3. ESG統合戦略に使われる第三者のESG評価が更新される頻度を示してください。

09.4. ESG統合戦略に使われる組織内調査を見直す頻度を示してください。

09.5. ポートフォリオ・マネージャーがどのようにしてESG情報を保有し、使っているのか説明してください。

09.6. 補足情報 [任意]

To strengthen our capabilities, Jupiter has invested in third-party ESG research and  data to help fund managers with security selection, monitoring, and engagement activities. The data is deployed in two ways: i) to augment day-to-day investee company monitoring, engagement and voting assessment at portfolio level and ii) CIO Office analysis of the ESG risk profile of our total assets under management. The current primary ESG rating providers are Sustainalytics and RepRisk. The fund managers and the GS team use third party ESG ratings and data to help inform the decision making / monitoring process, but we are not beholden to external scores or ratings. The construction of our portfolios at any given time reflects the fund manager’s broader investment process, consistent with his views and the stated objectives of the fund.


LEI 10. Aspects of analysis ESG information is integrated into

この指標には新しい設問が追加されています。事前に入力されている回答を精査してください。

10.1. 投資分析のどの側面にESG情報を統合しているかを記載してください。

アクティブ運用する上場株式の内投資分析をする割合

アクティブ運用する上場株式の内投資分析をする割合

アクティブ運用する上場株式の内投資分析をする割合

アクティブ運用する上場株式の内投資分析をする割合

アクティブ運用する上場株式の内投資分析をする割合

アクティブ運用する上場株式の内投資分析をする割合

10.2. ESG情報を適正価値/ファンダメンタル分析および/またはポートフォリオの構築へと統合するプロセスについて、組織でのプロセスの一部となっている手法を選択してください。

10.3. ESG情報をポートフォリオの加重にどう統合しているかを説明してください。

Consistent with our fund manager led approach to ESG integration, each investment team has their own process with regards to integrating ESG information into portfolio weighting, with due regard to the materiality of the risks identified and their confidence in the investment thesis. Once investments have been selected, ESG factors pertaining to each issuer inform position sizing, underpinning our views on whether our confidence in an investment decision grows or reduces over time. The input of the GS Team is available and utilised at any stage in this process, for example by undertaking pre-investment research or identifying and collaborating on areas for potential engagement to gain further insights. It is the responsibility of the fund managers to reflect material changes in ESG risk profile of companies in portfolio weightings. ESG factors are not viewed in isolation, rather the fund manager concentrates on trying to understand how these factors impact potential medium- and long-term investment performance, with reference to a company’s valuation, and identify which, in our view, are relevant and material to investment decisions.

10.4. 利益予想/バリュエーションツールの修正に使用した手法を説明してください。

Consistent with our fund manager led approach to ESG integration, each investment team has their own process with regards to integrating ESG information into company earnings forecasts and valuations, with due regard to the materiality of the risks identified and their confidence in the investment thesis. Once investments have been selected, ESG factors which may affect the valuation multiple and future earnings potential of companies are incorporated into the analysis, underpinning our views on whether our confidence in an investment decision grows or reduces over time. The input of the GS Team is available and utilised at any stage in this process, for example by undertaking pre-investment research or identifying and collaborating on areas for potential engagement to gain further insights. It is the responsibility of the fund managers to reflect material changes in ESG risk profile of companies into price targets and financial forecasts where these are part of the analysis. ESG factors are not viewed in isolation, rather the fund manager concentrates on trying to understand how these factors impact potential medium- and long-term investment performance, with reference to a company’s valuation, and identify which, in our view, are relevant and material to investment decisions.

10.5. 有価証券の評価に感応度/シナリオ分析をどのように適用しているか説明してください。

Our use of climate scenarios for our investment products is at an early stage. We have focused our scenario modelling so far on three areas: 1. Global Sustainable Equity Fund: A number of published transition scenarios and associated target pathways were reviewed, including six different IEA scenarios, four IPCC scenarios, the International Renewable Energy Agency (IRENA) REmap, the Greenpeace Advanced Energy [R]evolution, and the Deep Decarbonization Pathways Project. The main focus of these scenarios is on future energy mixes. The scenarios provide limited analysis of a cross-sector approach that is needed for decarbonisation, such as the role of efficient buildings, electric vehicles, sustainable transport, efficient industrial processes and heating and cooling. 2. In our fixed income team, the consideration of demographic factors influences the allocation of government debt purchases. 3. At the stock-specific level, we have used and particularly value the methodology provided by Transition Pathway Initiative (TPI), a global, asset-owner led initiative, as a forward-looking tool to assess the preparedness of carbon intensive companies for the transition to a low carbon economy.

10.6. 補足情報 [任意]

 

 


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