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

Lord Abbett

PRI reporting framework 2020

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

ESG incorporation in actively managed listed equities

Implementation processes

LEI 01. Percentage of each incorporation strategy

01.1. Indicate which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities; and the breakdown of your actively managed listed equities by strategy or combination of strategies.

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
99 %
Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
1 %
Total actively managed listed equities 100%

01.2. Describe your organisation’s approach to ESG incorporation and the reasons for choosing the particular strategy/strategies.

Lord Abbett has maintained a singular focus on the management of money since its founding in 1929. As a firm that is investment-led and investor-focused, we evaluate every decision from an investment perspective in our efforts to achieve superior, long-term, risk-adjusted performance on behalf of our clients. We take seriously our fiduciary responsibility in helping our clients meet their investment objectives, and we believe sustainability can have a tangible impact on an investment’s risk profile and its ability to generate returns over the long term; therefore, we take Environmental, Social and Governance (“ESG”) factors into consideration in our investment analysis. We also believe a responsible investment approach can result in positive impact beyond the financial return of a particular security and, thus, we believe that ESG integration can serve investors at large over the long term.

 

01.3. If assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]

When analyzing the risk/reward profile of a security, we evaluate the impact of ESG risks on enterprise value and, as with any other risks, we ensure that the expected return for every investment is commensurate with those risks. We also expect that consideration of ESG factors will lead to alpha opportunities, as we believe that companies that provide solutions to some of the largest and most pressing ESG issues have the potential to offer higher risk-adjusted returns. Our pursuit of managing risk effectively is also naturally aligned with active ownership, as we seek to identify companies with strong corporate governance and to avoid the adverse effects associated with poor environmental and social practices.

To the extent that individual client investment guidelines for a separate account include a screening/exclusion policy, we will seek to implement such an approach in accordance with guidelines. We currently manage approximately 20 accounts that include guidelines related to environmental, social or governance factors.  


LEI 02. Type of ESG information used in investment decision (Private)


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


(A) Implementation: Screening

LEI 04. Types of screening applied

04.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by

Description

Lord Abbett utilizes screening strategies when required by client-imposed guidelines. The client will typically provide a list of restricted securities or general criteria, which will be incorporated into the investment management guidelines for that particular account.

04.2. Describe how you notify clients and/or beneficiaries when changes are made to your screening criteria.

Lord Abbett utilizes screening strategies when required by client-imposed guidelines. The client will typically provide a list of restricted securities or general criteria, which will be incorporated into the investment management guidelines for that particular account.


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

05.1. Indicate which processes your organisation uses to ensure ESG screening is based on robust analysis.

05.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your ESG screening strategy.

05.3. Indicate how frequently third party ESG ratings are updated for screening purposes.

05.4. Indicate how frequently you review internal research that builds your ESG screens.

05.5. Additional information. [Optional]


LEI 06. Processes to ensure fund criteria are not breached (Private)


(C) Implementation: Integration of ESG factors

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate the proportion of actively managed listed equity portfolios where E, S and G factors are systematically researched as part of your investment analysis.

ESG issues

Proportion impacted by analysis
Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]


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

09.1. Indicate which processes your organisation uses to ensure ESG integration is based on robust analysis.

09.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your integration strategy.

09.3. Indicate how frequently third party ESG ratings that inform your ESG integration strategy are updated.

09.4. Indicate how frequently you review internal research that builds your ESG integration strategy.

09.5. Describe how ESG information is held and used by your portfolio managers.

09.6. Additional information. [Optional]


LEI 10. Aspects of analysis ESG information is integrated into (Private)


Top