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Jupiter Asset Management

PRI reporting framework 2020

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(B) Implementation: Thematic

FI 07. Thematic investing - overview

07.1. Indicate what proportion of your thematic investments are (totalling up to 100%):

45 %
0 %
0 %

Specify

          ‘Other’ thematic investments indicated above refer to fixed income securities issued by companies which promote environmental or social solutions, in line with the objectives of the thematic environmental fixed income strategy.
        
55 %

07.2. Describe your organisation’s approach to thematic fixed income investing

Jupiter’s thematic environmental fixed income strategy is managed with a collaborative approach, bringing together the expertise of Jupiter’s environment and sustainability equities and fixed income and multi-asset teams. We analyse how an entity’s business risk profile and earnings are likely to evolve over time and consider the impact on the various stakeholders involved. Careful consideration of a company’s entire capital structure and the relative value of those securities is central to the process in order to determine where the best risk-adjusted returns can be found between its bonds and equity. This approach helps us to determine the right balance of securities to help mitigate downside risk for our investors while providing our clients with exposure to long-term environmental and sustainable solutions themes.

We continue to strengthen our Green Bond and Sustainability Bond Criteria. Last year we explicitly incorporated a “Do No Harm” component to the credit review process for labelled bonds whereby the full operations of the organisation (not just the labelled projects) are reviewed for potentially harmful activities. In addition, we expect our criteria to develop in line with those speicified under the EU Taxonomy in 2020.

07.3. Additional information [OPTIONAL]


FI 08. Thematic investing - themed bond processes

08.1. Indicate whether you encourage transparency and disclosure relating to the issuance of themed bonds as per the Green Bonds Principles, Social Bond Principles, or Sustainability Bond Guidelines..

08.2. Describe the actions you take when issuers do not disburse bond proceeds as described in the offering documents.

Instances in which an issuer has not disbursed bond proceeds as initially described have not so far occurred in our portfolio to date. As stated above, we seek green bonds from organisations with robust environmental sustainability strategies which are directly linked into a green bond framework, providing a clear pathway to achieving those objectives through additional projects in future. Should such an event occur in the portfolio, our initial approach would be to engage with the issuer to raise the issue and verify the situation. Should we receive an unsatisfactory response from the issuer we would seek to escalate the engagement, this could entail a variety of approaches including collective engagement with other bondholders, going public with our concerns or appealing to regulatory or market standard setting bodies. Our final option should we be unable to satisfactory resolve the situation would be to divest from the security. We would also disclose details of such an engagement and our decision making to clients in the interests of transparency.

08.3. Additional information. [Optional]


FI 09. Thematic investing - assessing impact

09.1. Indicate how you assess the environmental or social impact of your thematic investments.

09.2. Additional information. [Optional]

Environmental and social impact is assessed in the context of the specific solution provided towards recognised sustainability challenges. The fund seeks a combination of themes including but not limited to climate change mitigation; transition to a circular economy, waste prevention and recycling; protection of ecosystems; pollution prevention control and sustainable use and protection of water and marine resources. Therefore the range of impact outcomes and associated metrics vary by solution type.

We continue to strengthen our Green Bond and Sustainability Bond Criteria. Last year we have explicitly incorporated a “Do No Harm” component to the credit review process for labelled bonds whereby the full operations of the organisation (not just the labelled projects) are reviewed for potentially harmful activities. In addition, we expect our criteria to develop in line with those specified under the EU Taxonomy in 2020.


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