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TD Asset Management (TDAM)

PRI reporting framework 2020

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

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%
99.9 %
Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
0.1 %
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.

We believe that incorporating ESG factors in our analysis provides an additional lens to a more robust risk analysis. Integration allows us to add ESG consideration alongside other measures when considering a company's attractiveness as an investment. It also leads to more informed discussions with management teams.

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

We incorporate a positive screening strategy for the TD Private North American Sustainability Leadership Model Portfolio. The model invests in high quality companies that demonstrate positive contributions towards achieving the Sustainable Development Goals (SDG) set by the United Nations (UN).


LEI 02. Type of ESG information used in investment decision

02.1. Indicate what ESG information you use in your ESG incorporation strategies and who provides this information.

Type of ESG information

Indicate who provides this information  

Indicate who provides this information 

Indicate who provides this information 

Indicate who provides this information 

Indicate who provides this information 

Indicate who provides this information 

02.2. Indicate whether you incentivise brokers to provide ESG research.

02.3. Describe how you incentivise brokers.

Our Regulatory and Policy Governance group coordinates our semi-annual broker voting process whereby Portfolio Managers and analysts vote for those broker/dealers whom they believe provide valuable research products and services which includes a firm's ESG research. The outcome of the process is used to better incentivize brokers through commission allocation.

02.4. Additional information. [Optional]


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

03.1. Indicate whether your organisation has a process through which information derived from ESG engagement and/or (proxy) voting activities is made available for use in investment decision-making.

03.2. Additional information. [Optional]


(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

For the sustainability leaders model, we screen for companies with positive contribution towards achieving the SDGs set by the UN, either through products or services that they provide, or through corporate practices.

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

If investment guideline change, we will notify our clients. We provide quarterly updates to highlight performance / allocation / and company profiles for investors. 


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.

05.3. 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)


(B) Implementation: Thematic

LEI 07. Types of sustainability thematic funds/mandates

07.1. Indicate the type of sustainability thematic funds or mandates your organisation manages.

07.2. Describe your organisation’s processes relating to sustainability themed funds. [Optional]

TD Private North American Sustainability Leadership Model Portfolio.

The model invests in companies with positive contribution towards achieving the SDGs set by the UN, either through products or services that they provide, or through corporate practices.


(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.

          Structured, regular portfolio meetings are held among the portfolio managers to review our ESG integration process;
Portfolio ESG ratings are reviewed quarterly against benchmark.
        

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

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

10.1. Indicate which aspects of investment analysis you integrate material ESG information into.

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

10.2. Indicate which methods are part of your process to integrate ESG information into fair value/fundamental analysis.

10.4. Describe the methods you have used to adjust the income forecast/valuation tool.

To assess the viability of a company's revenue growth, we analyse key drivers: organic vs. merger and acquisition, product pipeline driven by research and development, pricing power vs. volume growth. We also use various discount rates in our discounted cash flow calculation based on perceived risk.

10.6. Additional information. [OPTIONAL]


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