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

Loomis, Sayles & Company, L.P.

PRI reporting framework 2020

You are in Direct - Fixed Income » Fixed income - Engagement

Fixed income - Engagement

FI 14. Engagement overview and coverage

14.1. Indicate the proportion of your fixed income assets on which you engage. Please exclude any engagements carried out solely in your capacity as a shareholder.

Category
Proportion of assets
SSA

14.2. Indicate your motivations for conducting engagement (SSA fixed income assets).

Corporate (financial)

14.2. Indicate your motivations for conducting engagement (Corporate, Financial fixed income assets)

Corporate (non-financial)

14.2. Indicate your motivations for conducting engagement (Corporate, non-financial fixed income assets)

Securitised

14.2. Indicate your motivations for conducting engagement (Securitised fixed income assets).

14.3. Additional information.[OPTIONAL]

We also engage with Corporate issuers to gain an understanding of their long-term sustainability as it relates to customer preference shifts, the development of new technologies, and changes in government regulations and policies. For example, the automotive industry is now addressing tremendous pressure to move away from the traditional internal combustion engine and to cleaner powertarins, such as electric. 

Our Securitized Team had 46 documented engagements with issuers during the course of 2018. A summary of these engagements is below:

Comment on Consumer ABS: When asked about ESG many consumer ABS issuers are unaware of the topic and say they have not been asked about the issues by other ABS investors.

Comment on Commercial ABS: Given the variety of asset classes contained within Commercial ABS, we have received mixed responses.  The strongest ESG responses have been from businesses such as equipment lessors who have participated in pilot testing electric trucking vehicles in California.  In the middle range are issuers who have environmental / green initiatives within their workplace.  There are some that have a very limited response.

Comment on Residential Real Estate: The issuers we have discussed this with have not addressed ESG specifically within their process, and have not heard the question often.  The GSEs are a notable exception, with significant economic concessions being made to offer MWOB (minority-women-owned-business) auctioning of RPL (re-preforming loans) and NPL (non-performing loans) pools.

Comment on Commercial Real Estate: The CMBS Issuer is a trust and has no policies. I have spoken with various underwriters and they recognize that for certain assets (Single-Asset Single-Borrower transactions) LEED certification (energy efficiency etc) add to the value of the asset. Several of the mortgage REITs have awareness of the ESG funds and are crafting policies. But like economic considerations (fiduciary duty to their owners) is the driving consideration. 

 


FI 15. Engagement method

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

15.1. Indicate how you typically engage with issuers as a fixed income investor, or as both a fixed income and listed equity investor. (Please do not include engagements where you are both a bondholder and shareholder but engage as a listed equity investor only.)

Select all that apply
Type of engagement
SSA
Corporate (financial)
Corporate (non-financial)
Securitised
Individual/Internal staff engagements
Collaborative engagements
Service provider engagements

15.2. Indicate how your organisation prioritises engagements with issuers.

Select all that apply
SSA
Corporate (financial)
Corporate (non-financial)
Securitised
Size of holdings
Credit quality of the issuer
Duration of holdings
Quality of transparency on ESG
Specific markets and/or sectors
Specific ESG themes
Issuers in the lowest ranks of ESG benchmarks
Issuers in the highest ranks of ESG benchmarks
Specific issues considered priorities for the investor based on input from clients and beneficiaries
Other

15.3. Indicate when your organisation conducts engagements with issuers.

Select all that apply
SSA
Corporate (financial)
Corporate (non-financial)
Securitised
We engage pre-investment.
We engage post-investment.
We engage proactively in anticipation of specific ESG risks and/or opportunities.
We engage in reaction to ESG issues that have already affected the issuer.
We engage prior to ESG-related divestments.
Other, describe

15.4. Indicate what your organisation conducts engagements with issuers on.

Select all that apply
SSA
Corporate (financial)
Corporate (non-financial)
Securitised
We engage on ESG risks and opportunities affecting a specific bond issuer or its issuer.
We engage on ESG risks and opportunities affecting the entire industry or region that the issuer belongs to.
We engage on specific ESG themes across issuers and industries (e.g., human rights).
Other, describe

15.5. Indicate how your organisation ensures that information and insights collected through engagement can feed into the investment decision-making process.

Select all that apply
SSA
Corporate (financial)
Corporate (non-financial)
Securitised
Ensuring regular cross-team meetings and presentations.
Sharing engagement data across platforms that is accessible to ESG and investment teams.
Encouraging ESG and investment teams to join engagement meetings and roadshows.
Delegating some engagement dialogue to portfolio managers/credit analysts.
Involving portfolio managers when defining an engagement programme and developing engagement decisions.
Establishing mechanisms to rebalance portfolio holdings based on levels of interaction and outcomes of engagements.
Considering active ownership as a mechanism to assess potential future investments.
Other, describe
We do not ensure that information and insights collected through engagement can feed into the investment decision-making process.

15.6. Additional information.[OPTIONAL]


FI 16. Engagement policy disclosure

16.1. Indicate if your publicly available policy documents explicitly refer to fixed income engagement separately from engagements in relation to other asset classes.

16.3. Additional information [OPTIONAL]

We are in the process of updating our ESG Policy Statement, and we are incorporating detailed language about engagement across asset classes.  As a large, global, diversified asset manager, we have the ability to influence issuers on ESG and other fundamental factors. 


Top