Trecento AM has developped a monitoring tool, through a database, that enables the analysts and fund managers to identify, categorise and continuously monitor the ESG incidents and controversies that impact the issuers whose securities are held in our investment funds.
The severity of each controversy is analysed and ranked, as well as the answers and actions undertaken by the issuers to mitigate the controversy.
The management team then decides what actions, if any, to take, depending on the ranking of the controversy. In severe cases, the issuer can be impacted by a penalty as regard its maximum weighting in our funds (can be decreased by 0.25%, 0,5% or 1%) or could even be added to the exclusion list of Trecento AM.