This report shows public data only. Is this your organisation? If so, login here to view your full report.

Jupiter Asset Management

PRI reporting framework 2020

Export Public Responses
Pdf-img

You are in Strategy and Governance » Governance and human resources

Governance and human resources

SG 07. RI roles and responsibilities

07.1. Indicate the internal and/or external roles used by your organisation, and indicate for each whether they have oversight and/or implementation responsibilities for responsible investment.

Roles

Select from the below internal roles

          Heads of Investment Strategies
        

07.2. For the roles for which you have RI oversight/accountability or implementation responsibilities, indicate how you execute these responsibilities.

BOARD (Oversight and implementation through Vice Chairman): The Board is collectively responsible for approving Jupiter's UK Stewardship Code statements. In addition, the Board will allocate a specific agenda dedicated to our investor stewardship activities and receive comment from the CIO and Head of Governance and Sustainability at least on an annual basis. For the period under review, the Board had two formal presentations on stewardship from the CIO and Head of Governance & Sustainability. During Q2, Jupiter's Executive Committee (under the new CEO) also received a presentation from the CIO and Head of Governance & Sustainability. The CIO is a member of Jupiter's Executive Committee.

Jupiter's Vice Chairman is a member of the Stewardship Committee. This Committee does not fall under the auspices of the Board, but it is a function of our fund management department. Further details are discussed below (under the management section) but it is important to highlight that the Committee has Board-level representation. We believe this is important to aid information flows on stewardship activity and challenges. Furthermore, it also reinforces our stewardship culture by connecting our firm's leadership directly with our stewardship undertakings. Due to his market knowledge, investment insight and corporate experience, our Vice Chairman is able to assist during engagement meetings and his counsel is sought when undertaking public policy work. External partnerships are featuring more strongly in our stewardship approach, especially when confronting systemic risks and promoting a well-functioning market. Both the CIO and Vice Chairman have also been involved in dialogue with our partners such as the Investor Forum and Tomorrow's Company.

As previously discussed in this response, Jupiter has a CSR Committee which is contains both executive and non-executive board members. The remit of the CSR Committee is much broader to encompass further organisational CSR considerations beyond investor stewardship (e.g. employee engagement, charitable giving). However, stewardship and Jupiter's environmental impact including TCFD oversight is part of this Committee's remit. The Committee plays an oversight role with regards to the phased implementation of the TCFD recommendations, and Jupiter's broader climate and sustainability disclosure framework, notably via our annual corporate CDP response and Global Reporting Initiative (GRI) statements.

MANAGEMENT (CIO - oversight and implementation): The CIO has formal responsibility for group-wide oversight of stewardship policy and application. Stewardship is now a factor within the performance objectives of our investment personnel. It falls under the CIO's office to monitor and review these objectives with our investment personnel.

The Stewardship Committee is chaired by the CIO. Other members include the Head of Governance & Sustainability, fund manager representatives from equity, fixed income and fund of fund asset classes as well as governance and sustainability specialists. The Committee may also invite external consultants to provide insight into the topics discussed. The objective of the Committee is to develop and deliver a coordinated approach to engagement on ESG matters with chairmen, directors and independent non-executive directors. Through this process, fund managers gain investment insight to inform decision making and influence investee companies where relevant, on behalf of clients. The Committee is also responsible for reviewing Jupiter's policies on stewardship and engagement and ensuring adherence to the company's stewardship obligations.

In terms of implementation, where relevant the CIO and / or the Vice Chairman will also engage with policymakers, collaborative bodies and investor groups. This is an important aspect as we are keen to have our corporate and departmental leaders engage with external policy makers so that it does not compartmentalise stewardship to ESG specialists.

Portfolio Managers (Oversight and Implementation), Investment Analysts and Responsible Investment specialists (implementation): These parties are responsible for the day to day implementation of the specific responsible investment practices. It should be noted that our fund managers have full responsibility and accountability for making such decisions for their portfolios.

The assessment of responsible investment performance is complex and nuanced. The nature of many of the stewardship issues can take multiple periods to exhibit a discernible outcome (e.g. succession, changes in accounting practices, M&A integration) and furthermore this will also entail being engaged over the long-term. Therefore, we are not inclined to judge responsible investment as a snapshot. The CIO's Office will discuss engagement decisions / outcomes, voting decisions, follow up items with each strategy and also reference third-party ESG risk information to underline scrutiny.

DATA SCIENCE: Effective stewardship means maximising internal resources. One of the developments from the period was strengthening our Data Science Team and for them to also take an active leadership role to enhance ESG monitoring capabilities. Our Data Science and GS Team have worked in partnership to create an internal ESG Hub which is an online platform that gathers ESG risk data from third party providers and therefore allows not only our investment teams to be able to access ESG risk data across their portfolios or other stocks (as part of ESG integration) in an efficient manner, it is simultaneously used as a management tool for the CIO office to oversee fund managers. The data science capabilities are important as a great level of expertise is required in order to cleanse the data and challenge our data providers. The initial aim for the internal ESG hub is for it to  channel third party data, but the next development will be to tailor metrics and weights in accordance to fund management preferences. The long-term goal will aim to use machine learning to see if we can use modelling to predict future ESG performance.

07.3. Indicate the number of dedicated responsible investment staff your organisation has.

8 Number

07.4. Additional information. [Optional]

The dedicated responsible investment staff consist of four members of the GS Team, two members from a responsible investment strategy and a further two members that form our global sustainable equities strategy. 


SG 07 CC. Climate-issues roles and responsibilities

07.5 CC. Indicate the roles in the organisation that have oversight, accountability and/or management responsibilities for climate-related issues.

Board members or trustees

Chief Executive Officer (CEO), Chief Investment Officer (CIO), Chief Risk Officer (CRO), Investment Committee

Other Chief-level staff or heads of departments

Portfolio managers

Investment analysts

Dedicated responsible investment staff

External managers or service providers

07.6 CC. For board-level roles that have climate-related issue oversight/accountability or implementation responsibilities, indicate how these responsibilities are executed.

Overall responsibility for environmental and corporate responsibility, including the development and implementation of the company climate change strategy and management of information on climate change rests with our CEO. The rationale for the CEO having responsibility for climate-related issues is that, together with the Executive Directors, he is responsible for the management of the Group’s day-to-day business and for ensuring the implementation of strategy, and as such, has specific responsibility for climate-related issues.

The Board has ultimate responsibility for the risk strategy of the Group and for determining an appropriate risk appetite as well as the tolerance levels within which the Group must operate. On an annual basis the Board formally considers its appetite for risk with particular regard to the Group’s strategic plans, the wider business environment and the current and future condition of the Group’s business and operations. The Group Risk Appetite is informed and challenged by any experience of materialised risk, either within Jupiter or in the broader marketplace. The Board meets regularly throughout the year and will discuss climate-related issues and how they impact Jupiter as and when they arise. This frequency of discussion has been sufficient for the level of climate change risk that Jupiter is exposed to up to this point, however the question of how regularly the Board should consider climate risk and whether a more defined schedule would be beneficial is being kept under review.

The Audit and Risk Committee, chaired by a Non-Executive Director, and attended by members of the Executive Committee and other functional representatives, oversees the risk and control framework within the Group and the independent monitoring and reporting of risk and controls, including climate change risks. Risks are prioritised by the Audit & Risk Committee, which reviews the Group’s primary risk exposures (with consideration of impact and likelihood assessment and the effectiveness of existing controls) in the context of the Board’s tolerance thresholds to ensure that the governance arrangements within the Group are effective in the mitigation of risk. The Committee is supported by the Risk department, which provides assurance to internal and external stakeholders on the Group’s risk management activities. It is an independent function that supports and challenges the business on their assessment of risks and controls.

The Vice Chairman is also a member of Stewardship Committee and this strengthens the alignment and information flows around climate issues pertaining to our investments to the Board.

Information from the Stewardship Committee is relayed to the CSR Committee, which is concerned with the wider CSR responsibilities of JFM plc and this helps to inform senior management and provide thereby helping to further enhance the senior management’s understanding of how we meet our commitments as TCFD supporters. The CSR Committee contains representatives of JFM’s Executive Committee, the Senior Independent Director and the Head of Governance & Sustainability.

07.7 CC. For management-level roles that assess and manage climate-related issues, provide further information on the structure and processes involved.

As detailed in SG 07.2, the CIO has formal responsibility for group-wide oversight of stewardship policy and application, and this extends to the assessment and management of climate-related issues by our fund managers. Monitoring and engagement of material climate risks is included within the stewardship component of each fund manager’s objectives. The CIO assesses how managers approach environmental risks, including climate risks, within their investment strategy. Where we hold significant positions in companies which have been identified as systemically important emitters, the CIO will look to see that our fund managers exercise appropriate stewardship of these risks via the process outlined in the stewardship section and seek to understand whether company strategy is consistent with the goals of the Paris Agreement and the TCFD recommendations.

Our GS Team are part of the fund management department and report to the CIO. The team work closely with fund managers to deliver our stewardship commitments. The team helps identify relevant ESG factors that might affect the business performance of investee companies, including the identification of material climate risks.

The Stewardship Committee provides a platform to co-ordinate and review engagement on climate risks and to debate whether we are receiving the desired response from companies. The Committee also considers the external ESG landscape and industry and public policy matters. The Committee meets at least three times a year and will not only scrutinise the activity undertaken as part of Jupiter’s commitment under TCFD and other initiatives but also serves as an opportunity to set further objectives around these matters.

The Facilities Manager manages Jupiter's direct environmental and emissions impact including projects such as the move to the BREEAM Excellent rated office in London and on-going projects such as the BREEAM In-Use Gap Analysis and the RE100 commitment. To monitor Jupiter's impact, the Facilities Manager feeds into quarterly performance reports on Jupiter's emissions, looking into significant changes in consumption to understand the drivers behind them.

Information from the Stewardship Committee is relayed to the CSR Committee, which is concerned with the wider CSR responsibilities of JFM plc and this helps to inform senior management and provide thereby helping to further enhance the senior management’s understanding of how we meet our commitments as TCFD supporters. The CSR Committee contains representatives of JFM’s Executive Committee and the Head of Governance & Sustainability.

07.8 CC. Indicate how your organisation engages external investment managers and/or service providers on the TCFD recommendations and their implementation.


SG 08. RI in performance management, reward and/or personal development

08.1. Indicate if your organisation’s performance management, reward and/or personal development processes have a responsible investment element.

Board members/Board of trustees

08.1b. RI in personal development and/or training plan

Chief Executive Officer (CEO), Chief Investment Officer (CIO), Chief Operating Officer (COO), Investment Committee

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Other C-level staff or head of department

          Heads of Investment Strategies
        

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Portfolio managers

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Investment analysts

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Dedicated responsible investment staff

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

08.3. Provide any additional information on your organisation’s performance management, reward and/or personal development processes in relation to responsible investment.

As previously mentioned, we have conducted some significant changes to strengthen our ESG capabilities, this has included the CIO formally taking responsibility for departmental ESG oversight and the establishment of a CSR committee which contains the CEO, Vice Chairman, HR Director and Senior Independent Director as members. This further reinforces the stewardship culture of our firm by having some of our most senior leadership figures on this Committee to consider these issues. We have worked with our HR department and now incorporated stewardship within the performance objectives of our investment personnel and used an external consultant to run training sessions across asset classes.


Top