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Pareto Asset Management AS

PRI reporting framework 2020

You are in Direct - Listed Equity Active Ownership » Engagement

Engagement

LEA 02. Reasoning for interaction on ESG issues

Indicate the method of engagement, giving reasons for the interaction.

Type of engagement

Reason for interaction

Individual / Internal staff engagements
Collaborative engagements
Service provider engagements

02.4. Additional information. [Optional]

We have no general policy of engaging via collaborative engagements and we take it that Norsif/Swesif membership is not what's intended her. However, we do from time to time, as we have done recently, team up with other investors in order to bring about change or better disclosure on certain topics, the last such case involving a conflict of interest due to related party transactions. Some six cases of collaborative efforts have involved corporate governance.

We would like to add that due to our concentrated portfolios and the long-term nature of our holdings, we know the companies we invest in very well, communicating regularly with senior management, whether on a formal or an informal basis. This is not always logged, but it is a central part of our portfolio management, as we argue that knowing our portfolio companies well is a means of reducing risk beyond simple diversification. Dialogue is more common in our management of domestic securities, but we do encourage all portfolio managers to engage in dialogue with their respective portfolio companies.

 

 


LEA 03. Process for identifying and prioritising engagement activities

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

03.1. Indicate whether your organisation has a formal process for identifying and prioritising engagements.

Indicate the criteria used to identify and prioritise engagements for each type of engagement.
Type of engagement
Criteria used to identify/prioritise engagements
Individual / Internal staff engagements

Individual / Internal staff engagements

Collaborative engagements

Collaborative engagements

03.3. Additional information. [Optional]


LEA 04. Objectives for engagement activities

New selection options have been added to this indicator. Please review your prefilled responses carefully.
Indicate whether you define specific objectives for your organisation’s engagement activities.
Individual / Internal staff engagements
Collaborative engagements

04.2. Additional information. [Optional]


LEA 05. Process for identifying and prioritising collaborative engagement

Indicate whether you monitor and/or review engagement outcomes.
Individual / Internal staff engagements
Collaborative engagements
Indicate whether you do any of the following to monitor and/or review the progress of engagement activities.
Individual / Internal staff engagements
          Regular discussions with the CIO about individual companies. Objectives may be hard to define precisely, not to say
quantify.
        
Collaborative engagements
          On a case-by-case basis. Given a smaller number of cases than with internal
engagements, we can tick off a majority of cases.
        

05.3. Additional information. [Optional]

Being an active asset manager, we expect the close contact and wide extent of informal communication with our limited number of companies to provide good insight into all relevant matters. Then again, given that this is very much informal communication, it is hard to itemize.


LEA 06. Role in engagement process

06.1. Indicate whether your organisation has an escalation strategy when engagements are unsuccessful.

06.3. Additional information. [Optional]

Please note, though, that we are not likely to settle for an unsuccessful outcome. The general idea is if you don't succeed, try again ... We don't, however, have a formal strategy in this regard.


LEA 07. Share insights from engagements with internal/external managers

07.1. Indicate whether insights gained from your organisation`s engagements are shared with investment decision-makers.

Type of engagement

Insights shared

Individual / Internal staff engagements

Collaborative engagements

07.2. Indicate the practices used to ensure that information and insights gained through engagements are shared with investment decision-makers.

07.3. Indicate whether insights gained from your organisation’s engagements are shared with your clients/beneficiaries.

Type of engagement

Insights shared

Individual/Internal staff engagements

Collaborative engagements

07.4. Additional information. [Optional]

All our engagements are made by, or in collaboration with, our portfolio management teams, the other internal party to these engagements being the ethics committee. However, insights from e.g. customer interaction are passed on to the portfolio managers/CIO/ethics committee and outcomes communicated internally for better general awareness and more specific knowledge of portfolio holdings or exclusions.

As for LEA 07.2, then, it is not so much a case of "involving decision-makers" as of having investment decision-makers develop and execute the engagement program themselves. Ours is not a very big organization.


LEA 08. Tracking number of engagements

08.1. Indicate whether you track the number of your engagement activities.

Type of engagement
Tracking engagements
Individual/Internal staff engagements​

Collaborative engagements

08.2. Additional information. [Optional]

We only track engagements of a certain significance or lending themselves to being quantified. 


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