ESG in collective investment management
ESG methodology of our funds
We have established a proprietary methodology for selecting stocks, based on data from an external extra-financial research provider (Moody’s) and public data. The analysis is based on a compilation of 6 criteria.
These criteria are grouped under the E, S and G pillars. The weighting of each pillar is adapted to the strategy of each fund so as to respect its investment theme. A policy of excluding companies involved in the production of controversial weapons, covered by the Oslo and Ottawa Conventions (cluster munitions and anti-personnel mines), chemical weapons or biological weapons, as well as controversy management, is integrated into the rating system.
In this way, the extra-financial scores and rankings derived from this methodology are superimposed on the financial filter when making investment decisions.
Consequently, all Richelieu Gestion funds fall within the scope of Article 8 of the SFDR regulation.
In the event of any inconsistency in the source data, and in order not to exclude an issuer a priori, the management team reserves the right to enrich the database itself after discussion with the service provider(s) or directly with the issuer.
Voting and commitment
Richelieu Gestion uses the services of ISS to advise on the implementation of its voting policy and the exercise of postal voting rights. The implementation of the voting policy is drawn up in conjunction with the service provider, which issues voting proposals for each resolution. To ensure that our votes are in line with our convictions, Richelieu Gestion uses the service provider’s SRI (Socially Responsible Investment) voting policy.
Richelieu Gestion’s UCITS management team makes every effort to engage in dialogue with the companies in which the funds invest. These dialogues take place at quarterly results meetings or at events organized by the brokers, and provide an opportunity to delve deeper into the extra-financial strategy developed by the company, so that the fund managers can refine their analyses. They are also an opportunity to discuss identified areas for improvement with management.
If the company in which Richelieu Gestion invests fails to improve its practices, the management team may decide to reduce or sell its position.
