ABOUT THE ASSET MANAGEMENT COMPANY
GENERAL APPROACH OF INCLUDING ESG FACTORS WHEN DEFINING INVESTMENT POLICY
Covéa Finance is the asset management company for the Covéa mutual insurance group, incorporating the MAAF, MMA and GMF brands. It is committed to defining an investment policy that complies with the interests of the three groups. Against the background of these common interests, Covéa Finance is dedicated to providing financial services in support of insurance.
As a responsible institutional investor, Covéa Finance is a major player that supports the development of the French and European economies through its investment activities.
As an active investor, Covéa Finance fully takes on its shareholder responsibilities, seeking to ensure value creation in the long term and to protect its clients by exercising its voting rights and taking part in the process of shareholder dialogue.
Covéa Finance believes that voting at shareholders' meetings is an important aspect of its fund management role, and in 2006, therefore, adopted a voting policy that applies not only to its mutual funds but also investments managed under mandate. These commitments are reviewed each year in order to include new codes, regulations and market practices and are available for consultation on our website.
Professional code of ethics, Prevention of Money Laundering and Risk Control
Implementation of a professional code of ethics in 2003
Introduction of an anti-money laundering procedure in 2004
Formal documentation of an internal audit charter in 2004
Application of exclusion principles
Outside Europe, Covéa Finance mostly restricts its investments to equities and bonds of issuers in countries within the EEA (European Economic Area) and OECD (members and partners) and to the bond markets in the eurozone, UK and US, and remains vigilant about the content of its investments.
Moreover, at its level, Covéa Finance contributes to the effective implementation of international agreements and is careful to avoid making any investment for its fund principals or mutual funds it manages in companies known to specialise in the manufacture of controversial armaments, such as anti-personnel mines.
Procedure for selecting intermediaries and rating brokers
Covéa Finance has introduced a procedure for selecting intermediaries based on criteria for assessing the cost of intermediation, the quality of execution and that of their research (including SRI - Socially Responsible Investment), in addition to the effectiveness of its transaction processing systems. In application of the provisions of Article 314-82 of the General Regulations of the AMF (French financial supervision authority), a report is drawn up each year detailing intermediation fees.
Participation in commissions and working groups
Covéa Finance is actively involved in market developments by participating in regulatory working groups and by taking part in public consultations set up by the AFG, AMF and ESMA. Covéa Finance is currently a member of:
- The Governance Commissions of the AFG (French Financial Managers Association)
- The Employee Savings Plans Committee of the AFG (French Financial Management Association)
- The Sustainable Development Committee of the SFAF (French Association of Financial Analysts), working groups (MIF, UCITS IV, Solvency II, solidarity funds, Club AMPERE, profitability of fund management companies and products).
Covéa Finance has more than 140 employees at 31 December 2015. Thanks to its active employee relations policy and the implementation of collective bargaining agreements, Covéa Finance applies the principles of equal pay between the sexes, promotes career and skills planning and has signed an agreement regarding senior employees.
Furthermore, the principle of collaboration is integrated by setting annual corporate objectives. These are rolled out both individually and collectively throughout the company.
Covéa Finance has adopted a system of variable remuneration for fund management which is both team-based and capped, based on qualitative and quantitative criteria. All these measure are strictly in line with our clients' interests as the trigger factor is conditioned by the positive absolute performance of a basket of products (fund mandates and mutual funds).
• In addition, a Remuneration Committee of independent members reporting to the Supervisory Board is required to approve remuneration for the asset management company managers.
Covéa Finance has a fund management process designed to create long-term value for its shareholder clients, the overriding objective of which is to provide financial services to the insurance sector.
Covéa Finance is therefore based on a collaborative structure enabling individuals to contribute their expertise and to the strategy-setting process over the medium- to long term. In concrete terms, the tools developed by the SRI analyst-managers are sources of information which provide fuel the Equity, Fixed-income and Multi-management activities:
- targeted questionnaires designed for companies
- minutes from meetings with companies or specialist analysts
- databases developed internally such as the Employment Observatory and the HR data file
- alerts on current issues
While the SRI mutual fund range concentrates our ESG investments, Covéa Finance fully embraces its role as a responsible investor through a set line of conduct and initiatives which go beyond the various regulatory requirements and which are an ever-present feature of the company's life and processes.
THE CONTENTS, FREQUENCY AND RESOURCES EMPLOYED TO INFORM INVESTORS ABOUT THE CRITERIA RELATING TO ESG OBJECTIVES INCORPORATED WITHIN THEIR INVESTMENT POLICY
Link to the company's website to consult information about how ESG criteria are incorporated.