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Coronation Fund Managers

PRI reporting framework 2020

You are in Strategy and Governance » Asset class implementation not reported in other modules

Asset class implementation not reported in other modules

SG 16. ESG issues for internally managed assets not reported in framework

Describe how you address ESG issues for internally managed assets for which a specific PRI asset class module has yet to be developed or for which you are not required to report because your assets are below the minimum threshold.

Asset Class

Describe what processes are in place and the outputs or outcomes achieved

Cash

For fixed income securities, we combine detailed analysis with rigorous pricing techniques, drawing from the knowledge and experience of our broader investment team during this process. Our aim is to ensure that the credit spread adequately compensates us for the underlying risk of the entity. We assess the impact of ESG risks on issuer cash flows and the ability to repay debt, and require additional yield to compensate for higher risk. The primary objective for all cash holdings is to provide capital preservation and a high degree of liquidity. Coronation maintains a very conservative approach to any credit risk. Credit selection is primarily focused on mitigating downside risk. 

Money market instruments

For fixed income securities, we combine detailed analysis with rigorous pricing techniques, drawing from the knowledge and experience of our broader investment team during this process. Our aim is to ensure that the credit spread adequately compensates us for the underlying risk of the entity. We assess the impact of ESG risks on issuer cash flows and the ability to repay debt, and require additional yield to compensate for higher risk. The primary objective for any Money Market portfolio is to provide capital preservation and a high degree of liquidity. Coronation maintains a very conservative approach to any credit risk. Credit selection is primarily focused on mitigating downside risk. 

16.2. Additional information [Optional].


SG 17. ESG issues for externally managed assets not reported in framework

17.1. Describe how you address ESG issues for externally managed assets for which a specific PRI asset class module has yet to be developed or for which you are not required to report because your assets are below the minimum threshold.

Asset Class

Describe what processes are in place and the outputs or outcomes achieved

Listed equities - ESG incorporation

We select managers who share a similar investment philosophy to ours. Long term valuation driven stock selectors. The greater the length of the investment horizon, the far greater the impact ESG will have on the value of the business.  As long-term investors, it has always been an important part of your investment process to fully factor in the impact of environmental and social issues, and to ensure that the companies you are invested in maintain high standards of corporate governance.  A direct manager has a huge advantage in the manager selection process. We are better equipped to identify whether managers do what they claim.

Listed equities - engagement

The managers we appoint, like ourselves, believe the valuation and handling of ESG should be managed by the fund manager, who has a better understanding of the complex issues that underpin each individual company.

Listed equities - (proxy) voting

They vote on our behalf as they see fit.

17.2. Additional information.


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