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Merganser Capital Management, LLC

PRI reporting framework 2020

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

At Merganser, we believe in the traditional role of fixed income and the importance of safeguarding principal. We recognize that fulfilling our fiduciary responsibility to clients and positively contribute to the investment management industry involves incorporating Environment, Social and Governance (ESG) issues into our investment risk assessment. This thinking is consistent across our investment styles and is not unique to certain products or segments of the market. As an active fixed income manager with expertise across corporate credit and securitized assets, incorporating ESG-related considerations into our underwriting process enables us to enhance portfolio returns and better protect against downside risk. Further, we believe that ESG considerations should not be viewed in a vacuum but as one set of factors to consider in the broader mosaic of an informed investment decision. 


01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

Consistent with our overall investment approach, we assess ESG risk factors at a security level during the initial underwriting process.  In certain instances, transition and physical climate-related risks will be critical in determining the level of compensation we demand when lending our clients capital. This is a case-by-case basis as certain ESG attributes will be more or less meaningful depending on the issuer profile and underlying business. ​
Identifying and managing material climate-related risks in our client portfolios is accomplished through our fundamental ESG risk assessment which is described above in detail. We take a security by security approach in identifying whether climate factors will materially impact a bonds relative value and our ability to collect timely interest and principal.  We view socially responsible investing as an important component of the ESG risk management framework. Many of our clients utilize our capabilities in applying value-based screens which eliminate companies or industries that do not align with the mission and core beliefs of the organization. We can also simply adhere to a restricted issuer list and work with our clients to regularly test portfolios to ensure compliance. Building customized separate accounts has long been a core competency of our firm and this is supported by a robust technology infrastructure.  

01.6. Additional information [Optional].


SG 01 CC. Climate risk (Private)

SG 02. Publicly available RI policy or guidance documents


02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Additional information [Optional].

SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Conflicts of Interest

Merganser shall not enter into or engage in a security transaction or business activity or relationship, which may result in any financial or other conflict of interest between themselves, clients or Merganser. Employees shall also disclose to Merganser all matters that could reasonably be expected to interfere with their duty to Merganser, or with their ability to render unbiased and objective advice. If a potential, perceived or real conflict is identified, the chief compliance officer shall the update the portfolio management and compliance system to prohibit such transactions.

03.3. Additional information. [Optional]

SG 04. Identifying incidents occurring within portfolios (Private)