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Oasis Group Holdings

PRI reporting framework 2020

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ESG incorporation in actively managed fixed income

Implementation processes

FI 01. Incorporation strategies applied

Indicate (1) Which ESG incorporation strategy and/or combination of strategies you apply to your actively managed fixed income investments; and (2) The proportion (+/- 5%) of your total actively managed fixed income investments each strategy applies to.
SSA
0 Screening alone
0 Thematic alone
0 Integration alone
100 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (financial)
0 Screening alone
0 Thematic alone
0 Integration alone
100 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (non-financial)
0 Screening alone
0 Thematic alone
0 Integration alone
100 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%

01.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

We use a combination of screening and integration strategies to enable us to select high quality issuers which also display sound ESG principles.

01.3. Additional information [Optional].


FI 02. ESG issues and issuer research (Private)


FI 03. Processes to ensure analysis is robust

03.1. Indicate how you ensure that your ESG research process is robust:

specify description

          Engagement with a selected number of issuers takes place during roadshows and investor days.
        

03.2. Describe how your ESG information or analysis is shared among your investment team.

03.3. Additional information. [Optional]


(A) Implementation: Screening

FI 04. Types of screening applied

04.1. Indicate the type of screening you conduct.

Select all that apply
SSA
Corporate (financial)
Corporate (non-financial)
Negative/exclusionary screening
Positive/best-in-class screening
Norms-based screening

04.2. Describe your approach to screening for internally managed active fixed income

When undertaking due diligence on a potential investment, as part of the investment decision making process, the firm considers all relevant factors which include analyzing the macro-environment, industry/sector issues, operational issues, management, financial position, performance over the long-term and ESG opportunities and risks.

We believe that companies which incorporate Environmental, Social and Governance (ESG) considerations into their business model are more likely to be successful over the long-term. Consequently, we believe that incorporating ESG considerations into the investment decision-making process is likely to deliver superior and sustainable returns for our clients over the long-term. As part of our investment philosophy, we favour/look for companies which have strong market leadership positions, ability to convert market leadership into profit, cash flow and balance sheet leadership and has best-in-class ESG practices to ensure the sustainability of that profitability.

We integrate social inclusions such as analysing the extent to which the company engage with labour, development of staff and community (Bursary Programmes) and we attempt to ascertain political affiliations.

04.3. Additional information. [Optional]


FI 05. Examples of ESG factors in screening process (Private)


FI 06. Screening - ensuring criteria are met

06.1. Indicate which systems your organisation has to ensure that fund screening criteria are not breached in fixed income investments.

Type of screening
Checks
Negative/exclusionary screening

other description

          They are daily compliance checks with regards to instrument holdings in the portfolio. Any movement beyond an internal threshold limit is investigated.
        
Positive/best-in-class screening

other description

          They are daily compliance checks with regards to instrument holdings in the portfolio. Any movement beyond an internal threshold limit is investigated.
        
Norms-based screening

other description

          They are daily compliance checks with regards to instrument holdings in the portfolio. Any movement beyond an internal threshold limit is investigated.
        

06.2. Additional information. [Optional]


(C) Implementation: Integration

FI 10. Integration overview

10.1. Describe your approach to integrating ESG into traditional financial analysis.

When undertaking due diligence on a potential investment, as part of the investment decision making process, the firm considers all relevant factors which includes analyzing the macro environment, industry/sector issues, operational issues, management, financial position, performance over the long-term and ESG opportunities and risks.

We believe that issuers which incorporate Environmental, Social and Governance (ESG) considerations into their business model are more likely to be successful over the long-term. Consequently, we believe that incorporating ESG considerations into the investment decision making process is likely to deliver attractive risk adjusted returns for our clients over the long-term. As part of our investment philosophy we favor/look for companies which have strong market leadership positions, ability to convert market leadership into profit, cash flow and balance sheet leadership and has best-in-class ESG practices to ensure the sustainability of that profitability.

We incorporate Responsible Investing in our investment decision making process through quantifying the potential risks or opportunities arising from the ESG practices of a company. This includes quantifying the impact on profitability, credit metrics and yields. We incorporate ESG risk considerations in our modelling for the forecast horizon.

10.2. Describe how your ESG integration approach is adapted to each of the different types of fixed income you invest in.

SSA

When undertaking due diligence on a potential investment, as part of the investment decision making process, the firm considers all relevant factors which includes analyzing the macro environment, industry/sector issues, operational issues, management, financial position, performance over the long-term and ESG opportunities and risks.

We believe that issuers which incorporate Environmental, Social and Governance (ESG) considerations into their business model are more likely to be successful over the long-term. Consequently, we believe that incorporating ESG considerations into the investment decision making process is likely to deliver attractive risk adjusted returns for our clients over the long-term. As part of our investment philosophy we favor/look for companies which have strong market leadership positions, ability to convert market leadership into profit, cash flow and balance sheet leadership and has best-in-class ESG practices to ensure the sustainability of that profitability.

We incorporate Responsible Investing in our investment decision making process through quantifying the potential risks or opportunities arising from the ESG practices of a company. This includes quantifying the impact on profitability, credit metrics and yields.

Corporate (financial)

When undertaking due diligence on a potential investment, as part of the investment decision making process, the firm considers all relevant factors which includes analyzing the macro environment, industry/sector issues, operational issues, management, financial position, performance over the long-term and ESG opportunities and risks.

We believe that issuers which incorporate Environmental, Social and Governance (ESG) considerations into their business model are more likely to be successful over the long-term. Consequently, we believe that incorporating ESG considerations into the investment decision making process is likely to deliver attractive risk adjusted returns for our clients over the long-term. As part of our investment philosophy we favor/look for companies which have strong market leadership positions, ability to convert market leadership into profit, cash flow and balance sheet leadership and has best-in-class ESG practices to ensure the sustainability of that profitability.

We incorporate Responsible Investing in our investment decision making process through quantifying the potential risks or opportunities arising from the ESG practices of a company. This includes quantifying the impact on profitability, credit metrics and yields.

Corporate (non-financial)

When undertaking due diligence on a potential investment, as part of the investment decision making process, the firm considers all relevant factors which includes analyzing the macro environment, industry/sector issues, operational issues, management, financial position, performance over the long-term and ESG opportunities and risks.

We believe that issuers which incorporate Environmental, Social and Governance (ESG) considerations into their business model are more likely to be successful over the long-term. Consequently, we believe that incorporating ESG considerations into the investment decision making process is likely to deliver attractive risk adjusted returns for our clients over the long-term. As part of our investment philosophy we favor/look for companies which have strong market leadership positions, ability to convert market leadership into profit, cash flow and balance sheet leadership and has best-in-class ESG practices to ensure the sustainability of that profitability.

We incorporate Responsible Investing in our investment decision making process through quantifying the potential risks or opportunities arising from the ESG practices of a company. This includes quantifying the impact on profitability, credit metrics and yields.

10.3. Additional information [OPTIONAL]


FI 11. Integration - ESG information in investment processes

11.1. Indicate how ESG information is typically used as part of your investment process.

Select all that apply
SSA
Corporate (financial)
Corporate (non-financial)
ESG analysis is integrated into fundamental analysis
ESG analysis is used to adjust the internal credit assessments of issuers.
ESG analysis is used to adjust forecasted financials and future cash flow estimates.
ESG analysis impacts the ranking of an issuer relative to a chosen peer group.
An issuer`s ESG bond spreads and its relative value versus its sector peers are analysed to find out if all risks are priced in.
The impact of ESG analysis on bonds of an issuer with different durations/maturities are analysed.
Sensitivity analysis and scenario analysis are applied to valuation models to compare the difference between base-case and ESG-integrated security valuation.
ESG analysis is integrated into portfolio weighting decisions.
Companies, sectors, countries and currency and monitored for changes in ESG exposure and for breaches of risk limits.
The ESG profile of portfolios is examined for securities with high ESG risks and assessed relative to the ESG profile of a benchmark.
Other, specify in Additional Information

11.2. Additional information [OPTIONAL]


FI 12. Integration - E,S and G issues reviewed

12.1. Indicate the extent to which ESG issues are reviewed in your integration process.

Environment
Social
Governance
SSA

Environmental

Social

Governance

Corporate (financial)

Environmental

Social

Governance

Corporate (non-financial)

Environmental

Social

Governance

12.2. Please provide more detail on how you review E, S and/or G factors in your integration process.

SSA

Social responsibility is the cornerstone of the Oasis investment philosophy since its inception in 1997. Oasis is a signatory to the Principles for Responsible Investing (PRI). Oasis has also developed corporate action guidelines in accordance with best global practices including amongst others, the CFA Code of Ethics and Standards of Professional Conduct, the PRI, King IV Code of Governance, Cadbury Report, CRISA and other relevant documents.

We believe that supranational agencies which incorporate Environmental, Social and Governance (ESG) considerations into their business model are more likely to be successful over the long-term. Consequently, we believe that incorporating ESG considerations into the investment decision making process is likely to deliver superior and sustainable returns for our clients over the long-term. As part of being a responsible investor, we ensure that we are active owners and that our fiduciary duties in terms of shareholder rights are exercised in the best interest of our clients. We also ensure that all decisions are based on thorough analysis and that actions are properly recorded and communicated. Oasis also engages with the supranational agencies and the National Treasury in South Africa on all three aspects of ESG on a continuous basis.

We also incorporate Responsible Investing in our investment decision making process through quantifying the potential risks or opportunities arising from the ESG practices of the agencies. This includes quantifying the impact on profitability, balance sheet and credit metrics.

Corporate (financial)

Social responsibility is the cornerstone of the Oasis investment philosophy since its inception in 1997. Oasis is a signatory to the Principles for Responsible Investing (PRI). Oasis has also developed corporate action guidelines in accordance with best global practices including amongst others, the CFA Code of Ethics and Standards of Professional Conduct, the PRI, King IV Code of Governance, Cadbury Report, CRISA and other relevant documents.

We believe that corporate issuers which incorporate Environmental, Social and Governance (ESG) considerations into their business model are more likely to be successful over the long-term. Consequently, we believe that incorporating ESG considerations into the investment decision making process is likely to deliver superior and sustainable returns for our clients over the long-term. As part of being a responsible investor, we ensure that we are active owners and that our fiduciary duties in terms of shareholder rights are exercised in the best interest of our clients. We also ensure that all decisions are based on thorough analysis and that actions are properly recorded and communicated. Oasis also engages with the corporate issuers on all three aspects of ESG on a continuous basis.

We also incorporate Responsible Investing in our investment decision making process through quantifying the potential risks or opportunities arising from the ESG practices of a company. This includes quantifying the impact on profitability, balance sheet and credit metrics.

Corporate (non-financial)

Social responsibility is the cornerstone of the Oasis investment philosophy since its inception in 1997. Oasis is a signatory to the Principles for Responsible Investing (PRI). Oasis has also developed corporate action guidelines in accordance with best global practices including amongst others, the CFA Code of Ethics and Standards of Professional Conduct, the PRI, King IV Code of Governance, Cadbury Report, CRISA and other relevant documents.

We believe that corporate issuers which incorporate Environmental, Social and Governance (ESG) considerations into their business model are more likely to be successful over the long-term. Consequently, we believe that incorporating ESG considerations into the investment decision making process is likely to deliver superior and sustainable returns for our clients over the long-term. As part of being a responsible investor, we ensure that we are active owners and that our fiduciary duties in terms of shareholder rights are exercised in the best interest of our clients. We also ensure that all decisions are based on thorough analysis and that actions are properly recorded and communicated. Oasis also engages with the corporate issuers on all three aspects of ESG on a continuous basis.

We also incorporate Responsible Investing in our investment decision making process through quantifying the potential risks or opportunities arising from the ESG practices of a company. This includes quantifying the impact on profitability, balance sheet and credit metrics.

12.3. Additional information.[OPTIONAL]


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