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Trecento

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%
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.

Trecento AM's investment strategy is actually based on thematic funds invested with a RI approach. Since its creation in 2011, Trecento AM has lauched two thematic founds that are invested on the healthcare field and in robotics companies. The choice of this two sectors came from Trecento's will to invest in innovation and disruptive technologies that will modify and improve our way of living, consuming (raw material, energy, etc.), producing, and even healing ourselves.

Trecento AM uses ESG screening and ESG integration as well as a core focus of its investment process.

Exclusion policy for Screening

Trecento AM has implemented an exclusion policy that applies before the investment selection and that restricts the potential investment universe of our SRI funds.

- Norms-based exclusion: elimination from our SRI investment universe of listed issuers that do not comply with international norms, including the 10 Principles of the the United Nations Global Compact.

- Sectoral exclusion: elimination from our SRI investment universe of listed issuers when their core activity is, according to Trecento AM, incompatible with the principles of socially responsible investment.

On its website (http://www.trecento-am.com), Trecento AM releases the list of sectors and issuers included in this sectoral and normative exclusion policy, as well as information and details on the choice of organisations we have deemed relevant as a source for this exclusion policy.

 

ESG integration and investment selection policy

Our vision of socially responsible investment is intented to reconcile economic performance with a social and environmental positive impact by financing companies and public entities that contribute to the sustainable development whatever their line of business.

We have therefore implemented an investment selection policy that focuses on identifying the issuers (non-excluded in the screening process for sectoral or norms-based reasons) with the best ESG practices (« best-in-class » approach) in the sectors and sub-segments of investment of our thematic funds :

- to identify and thus to mitigate the risks associated with each issuer that would deteriorate value creation for investors.

- to provide capital and funding to the best issuers and thus encourage other issuers to improve their ESG practices to gain acces to new capital

- to participate to the fight against global warming and energy transition.

This policy is fully described and available on our website: http://www.trecento-am.com

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

For thematic funds, we use a combination of exclusion policies for screening universes and ESG integration as a best-in-class approach to select investments.


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 

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

02.4. Additional information. [Optional]

Information used by the fund managers and analysts at Trecento AM for the ESG incorporation are usually obtained from multiple sources of information.


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]

All the information regarding engagement and voting activity is recorded, stored on the company network and made available to all in order to be used by analysts and fund managers in investment decision-making.


(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

Exclusion from our SRI investment universe of listed issuers when their core activity is, according to Trecento AM, incompatible with the principles of socially responsible investment. On its website (http://www.trecento-am.com), Trecento AM releases the list of sectors and issuers included in this negative exclusion policy, as well as information and details on the choice of organisations we have deemed relevant as a source for this exclusion policy.

Screened by

Description

Exclusion from our SRI investment universe of listed issuers that do not comply with international norms, including the 10 Principles of the the United Nations Global Compact, the Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development and the United Nations Convention Against Corruption.

On its website (http://www.trecento-am.com), Trecento AM releases the list of sectors and issuers included in this norms-based exclusion policy, as well as information and details on the choice of organisations we have deemed relevant as a source for this exclusion policy.

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

Clients/beneficiaries are notified of changes made to our screening criteria through several ways:

- We update our publicly available exclusion policy and ESG incorporation policy on a regular basis and the up-to-date version of the policies is available on our website.

- If the modifications are sufficient enough to amend our investment process, then we need to update the legal documentation of the funds (prospectus) and inform all our clients / beneficiaries through a detailed letter to unit holders. We usually also send a newsletter to your clients to inform them of the modifications.


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.

05.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your ESG screening strategy.

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]

Trecento AM has set up an ESG committee that includes all its fund managers (of which the CEO and CIO) and (extra-)financial analysts. The ESG committee implements and monitors the responsible investment policies of the management company. In this role, it ensures that the ESG incorporation and analysis models are audited and controlled (by the compliance officer and its delegates), are updated and implemented according to the rules and processes described in the publicly available RI policies of the company and to the legal documentation of the investment funds.

As regard ESG screening, the ESG committee ensures that the third parties which provide information for the exclusion lists or ESG ratings/scores of the investment universes of the funds are relevant and have regularly updated their information. It then controls that the subsequent data, analysis or synthesis realised by our internal staff based on this information is accurate and robust.


LEI 06. Processes to ensure fund criteria are not breached

06.1. Indicate which processes your organisation uses to ensure fund criteria are not breached.

06.2. If breaches of fund screening criteria are identified, describe the process followed to correct those breaches.

If breaches of fund screening criteria were to be identified, by an analyst, fund manager, compliance officer, the CIO/CEO or the ESG committee, then a compliance alert would be issued to the fund manager in charge of the fund. This fund manager would have a maximum time period of one month to liquidate the controversial position. 

06.3. Additional information. [Optional]


(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]

Trecento AM's investment strategy is actually based on thematic funds invested with a RI approach. Since its creation in 2011, Trecento AM has lauched two thematic founds that are invested on the healthcare field and in robotics companies. The choice of this two sectors came from Trecento's will to invest in innovation and disruptive technologies that will modify and improve our way of living, consuming (raw material, energy, etc.), producing, and even healing ourselves.

Trecento Santé ISR invests invests in shares of international companies from the healthcare sector (including pharmaceutical, biotechnology, diagnostics and medical technology companies, management of hospitals and health centers).

Trecento Robotique ISR invests in international equities in the robotics sector (which includes robots conceptors/assemblers and their suppliers of equipment, component, material, data processor, software or other services). It is both an environmentally themed funds (robotics to optimise, i.e. reduce raw material consumption, energy, water consumption, polluant emissions) and a socially themed funds (solution against the decrease in active population in developed countries, assistance to disabled persons).

The processes in place to manage these funds follow the general investment process of Trecento AM, which combines fundamental analyses, ESG analysis, meetings with experts, investment committees, engagement with issuers and voting.


(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.

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]


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


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