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Caja Ingenieros GestiĆ³n SGIIC, SAU

PRI reporting framework 2020

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » (C) Implementation: Integration

(C) Implementation: Integration

FI 10. Integration overview

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

Depending on the scoring level the portfolio manager assign a negative or positive premium to the fundamental valuation of the company. Moreover could do the same procedure in case of detected controversies. With this premium the management of ESG aspects is included in the decision process and could be a reason to increment position, buy a new company or sell the actual position.

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

Corporate (financial)

Depending on the scoring level the portfolio manager assign a negative or positive premium to the fundamental valuation of the company. Moreover could do the same procedure in case of detected controversies. With this premium the management of ESG aspects is included in the decision process and could be a reason to increment position, buy a new company or sell the actual position. There are no treatment differences between financial and non-financial sector bonds.

Corporate (non-financial)

Depending on the scoring level the portfolio manager assign a negative or positive premium to the fundamental valuation of the company. Moreover could do the same procedure in case of detected controversies. With this premium the management of ESG aspects is included in the decision process and could be a reason to increment position, buy a new company or sell the actual position. There are no treatment differences between financial and non-financial sector bonds.

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
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
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.

Corporate (financial)

In the scoring calculation we use a % to evaluate the E/S/G Incidents. For example, if we want to invest in some companies that have a good qualifications because have no incidents or have incidents with a low impact, this companies probably will have a high scoring and will be included a positive premium on the fundamental valuation of the portfolio manager. On the other hand, if they have poor qualification on ESG incidents normally will have a low scoring what turns it into negative premium on the fundamental valuation of the portfolio manager. There are no treatment differences between financial and non-financial sector bonds.

Corporate (non-financial)

In the scoring calculation we use a % to evaluate the E/S/G Incidents. For example, if we want to invest in some companies that have a good qualifications because have no incidents or have incidents with a low impact, this companies probably will have a high scoring and will be included a positive premium on the fundamental valuation of the portfolio manager. On the other hand, if they have poor qualification on ESG incidents normally will have a low scoring what turns it into negative premium on the fundamental valuation of the portfolio manager. There are no treatment differences between financial and non-financial sector bonds.

12.3. Additional information.[OPTIONAL]


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