MUFG FUND REPORTS
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Sustainable Investing
As one of the first Japanese Institutional investors to became a signatory of UN PRI in May 2006, MUFG Asset Management (MUFG AM) takes Sustainable Investing seriously and has been working to integrate Environmental, Social and Governance (ESG) factors into their investment processes for some time. MUFG AM strongly believes that ESG integrated investments contribute to the development of sustainable society and our ESG analysis focuses on: governance, information disclosure, climate change and health & safety, and mitigating mid-long term risks based on the belief that ESG factors can positively impact long-term performance.
Our interpretation of “Sustainable Investing” is to build a better society for future generations by focusing on the medium to long-term impacts of investments on the environment and society, instead of pursuing short-term profits.
Our Fund Managers have developed a suite of products that invest with a strong focus on sustainable investing and the Chief Fund Manager in our ESG and Proxy Voting Department in MUFG: Trust Bank also sits on a number of Japanese government working parties around the topic.
MUFG AM has established the MUFG AM Sustainable Investing Policy as an approach to lay a solid foundation for the promotion of sustainable investing.
This commitment to sustainable investing is rooted in the common philosophy of MUFG AM. We believe that investment and engagement activities based on ESG opportunities and risks will encourage the sustainable growth of portfolio companies and improve investment performance. It will thus help us fulfil our fiduciary duty to the many clients who entrust their capital to MUFG AM.
Click here for the full content of MUFG AM Sustainable Investing Policy.
Click here for the full content of MUFG AM Global Engagement Policy.
More details of MUFG AM Sustainable Investment – MUFG AM Sustainable Investment website
Based on the “MUFG AM Sustainable Investing Policy”, our commitment to responsible investment in accordance with the six principles of the PRI(*) is as follows:
* PRI (Principles for Responsible Investment) is a set of investment principles promoted by the United Nations Environment Program Finance Initiative
(UNEP FI).
Principle 1
Selection
We will incorporate ESG issues into investment analysis and decision-making processes.
Promote sustainable investing activities of the asset management business and establish specific strategies for each asset class
Principle 2
Shareholders Action
We will be active owners and incorporate ESG issues into our ownership policies and practices.
Identify "material
ESG issues" discussed with companies through our ESG engagement activities
Principle 3
Information Disclosure
We will seek appropriate disclosure on ESG issues by the entities in which we invest.
Strive to
understand companies and promote disclosure of non-financial information, including ESG
Principle 4
Promotion Activities
We will promote acceptance and implementation of the Principles within the investment industry.
Educate through seminars and study sessions, develop ESG indicators and analysis methods
Principle 5
Collaboration
We will work together to enhance our effectiveness in implementing the Principles.
Endorse and
participate in initiatives, including PRI, and promote future collaborations
Principle 6
Reporting
We will report on our activities and progress towards implementing the principles.
Self-evaluate
the implementation
status of our Policy and report on this annually
Participation in Net Zero Asset Managers Initiative
In November 2021, MUFG AM has joined the “Net Zero Asset Managers initiative (NZAM)”, a global initiative for asset managers, and expressed its commitment to achieving Net Zero GHG emissions by 2050 or sooner. We are hereby pleased to announce that interim targets have been set for 2030 Net Zero GHG emissions.
MUFG: AM (UK) as the European based asset management arm of MUFG AM
The way we approach ESG issues when selecting companies for investment is threefold and comprises of direct company liaison, select negative screening and fundamental research:
Company Liaison
During meetings with management, or other such company contact, MUFG: AM (UK) will raise, as appropriate, aspects of ESG that are viewed as both relevant and material to the issuer.
Confirmation that relevant ESG issues were raised with management, where deemed appropriate, will be recorded as part of MUFG: AM (UK)’s ongoing tracking of all Issuer contact.
Negative Screening
The investment universe will be restricted by negative screen on an automated basis within our Order Management System. The filter will exclude companies engaged in activities considered inconsistent with MUFG AM Responsible Investment Policy (including but not limited to the production of landmines, cluster munitions and biological / chemical weapons).
Fundamental Research
Analysis is undertaken to identify the underlying factors that affect the wellbeing of industry groups and companies. Specific attention is placed on the sensitivity of such factors and their direction of change. The analysis is part of the holistic investment process that includes financial metrics and economic analysis.
No consideration of sustainability adverse impacts
- In order to measure the accurate and meaningful adverse sustainability impacts, MUFG: AM (UK) believes it is essential to have access to a standardised measurement of sustainability factors.
- MUFG: AM (UK) intends to consider such adverse impacts of our investment process, when standardised measurement of those factors are available.