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Genesis Investment Management, LLP

PRI reporting framework 2020

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%
100 %
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.

ESG factors are integrated into our investment process as part of the ongoing qualitative judgement of a company's sustainable competitive advantage. We formally rank the business quality of each company in client portfolios on a three-level scale of A to C which is a blended measure that incorporates the assessment of a business’ ability to generate sustainable excess returns on capital (its moat), the risk of negative USD Net Present Value revisions (including the impact of macro and political risks), management quality and the impact of ESG  factors on the sustainability of the business. 

We are a specialist asset manager and the same approach is taken across all holdings.

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


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)


(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]

We assess ESG factors (including climate-related risks and opportunities) in the context of materiality, mindful of the SASB framework. Sector Specialists are responsible for assessing the materiality and relevance of ESG factors in their respective sectors and providing an ESG framework to the team. Each Portfolio Manager is individually responsible for the integration of the relevant ESG issues into their investment analysis of a company. We pay particular attention to the quality of company management including their alignment of interests with minority investors.

Our investment style and focus on quality leads us to naturally invest more in entrepreneurial businesses such as consumer companies rather than heavy industry or mining companies, hence our ESG research is generally focused more towards corporate governance.

 


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.

          Each member of the Investment Team meets quarterly with the PCT to discuss their holdings in client portfolios including quality ratings (which incorporate ESG considerations).
        

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]

We assess ESG factors (including climate-related risks and opportunities) in the context of materiality mindful of the SASB framework. Sector Specialists are responsible for assessing the materiality and relevance of ESG factors in their respective sectors and providing an ESG framework to the team. We formally rank the business quality of each holding in client portfolios on a three-level scale of A to C.

Quality ratings are reviewed on an ongoing basis with full transparency across the full Investment Team.   As stated above, investment case documents including ESG issues and engagement priorities are maintained in a central and are available to all members of the Investment Team.   In addition, the Investment Team have access to ESG data on a separate MSCI platform. 

 

 

 


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


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