Summary of responses to the PRI reporting and assessment tool 2008

Inhance Investment Managment Inc.

Organisational Overview
1. What were your organisation's total assets under management as of 31 December 2007 (in millions)?100
Please select currencyCanadian dollar (CAD)
1a. If 'Other' was selected, please specify the other currency hereNo Answer
4. Please provide an overview of your asset mix as of 31 December 2007 (in %):
Listed equity (developed market, active)77
Listed equity (developed market, passive)0
Listed equity (emerging market, active)0
Listed equity (emerging market, passive)0
Fixed income - developed markets23
Fixed income - emerging markets0
Real estate or property0
Private equity0
Hedge fund0
Infrastructure0
Currency0
Commodities0
Cash0
Other (Please specify): 0
5. Please indicate what percentage of your assets are managed internally and what percentage are managed externally (in %):
 
Internal
External
Listed equity (developed market, active)0100
Listed equity (developed market, passive)00
Listed equity (emerging market, active)00
Listed equity (emerging market, passive)00
Fixed income - developed markets0100
Fixed income - emerging markets00
Real estate or property00
Private equity00
Hedge fund00
Infrastructure00
Currency00
Commodities00
Cash00
Other (Please specify): 00
6. Please provide the following contact details for your main PRI contact:
URL for webpage outlining the specific services and products your organisation has to assist signatories in fulfilling their commitments to the Principleswww.inhance.ca
Principle 1
8. Do you have a statement that makes specific reference to the integration of responsible investment (RI) or environmental, social and governance (ESG) issues within investment decision making and ownership practices?Yes, it is integrated into a broader statement
9. In what year were RI/ESG issues first formally addressed in a policy statement (integrated or independent)?2003
10. Has your statement that makes specific reference to the integration of RI or ESG issues been disclosed publicly?Yes
11. Please indicate how this statement that makes specific reference to the integration of RI or ESG issues can be obtained (a URL would be sufficient):Through our mutual fund prospectus we describe hour integrated investment process: http://www.inhance.ca/pdf/IIM_prospectus.pdf
14. For what percentage of your external assets under management are RI/ESG issues integrated into the investment decision-making processes of your external investment managers? (in %)
Listed equity (developed market, active)100
Fixed income - developed markets100
15. To what extent have RI/ESG issues been integrated into the investment decision-making processes of your external investment managers?
Listed equity (developed market, active) Large extent
Fixed income - developed marketsLarge extent
16. What proportion of your assets involve screening out or excluding stocks or sectors based on ethical (rather than long-term financial) criteria? (in %)
17. Do you have any staff dedicated to RI/ESG issue analysis and/or implementation?
 
Dedicated
Combined full-time equivalents
Investment analyst11
Research analyst11.25
RI/ESG issue policy advisor00
(proxy) Voting specialist10.25
Engagement specialist10.5
Portfolio manager22
Other (Please specify):00
18. Which Board committee or other executive body has overall responsibility for RI/ESG issues?Executive officers
19. Do you assess the capabilities of internal investment staff to incorporate RI/ESG issues?No Answer
20. Do you assess the capabilities of external investment managers to incorporate RI/ESG issues?No
21. Approximately what percentage of your internal non-ESG-specialist investment management staff received RI/ESG training in 2007? (in %)100
22. What forms of RI/ESG training or awareness raising have been invested in, encouraged or provided for internal staff (investment and other)?Formal internal training,Conferences,Professional programs
23. Did you support the development of nonproprietary RI/ESG issue-related tools, metrics, analysis or academic research in 2007?To a large extent
24. Please indicate how the results of nonproprietary RI/ESG issue-related tools, metrics, analysis or academic research development you supported can be obtained if they have been disclosed publicly (a URL would be sufficient):Through our website: www.inhance.ca
25. Have you advocated/supported/ encouraged/participated in RI/ESG issue-related industry-wide training for investment professionals during 2007?Sponsored industry events,Spoke at or attended conferences,Had dialogue or exchanges with peers,Instructed at universities or colleges
26. What was your most significant achievement in 2007 in relation to your implementation of Principle 1?Particpation in public forums, media interviews and education sessions for professionals on responsible investment.
27. What was your biggest barrier in 2007 with relation to your implementation of Principle 1?Greater demand than staff time and resources can accomodate.
28. Please add any overall comments and clarifications related to Principle 1 here.Enter text response here.
Principle 2
29. To what extent did you employ the following approaches in your 2007 active ownership strategy for listed equities?
(Proxy) votingTo a large extent
Direct engagement conducted privatelyTo a large extent
Direct engagement conducted publiclyTo a large extent
Collaborative engagementTo a moderate extent
Filing shareholder resolutionsTo a large extent
Co-filing shareholder resolutionsPlanning to in 2008
Other (Please specify):No Answer
30. To what extent did you employ the following approaches in your 2007 active ownership strategy for all asset classes other than listed equity?
(Proxy) votingNot at all
Direct engagement conducted privatelyNot at all
Direct engagement conducted publiclyNot at all
Collaborative engagementNot at all
Other (Please specify):Not at all
31. Do you have a (proxy) voting policy?Yes - disclosed publicly
32. To what extent does your (proxy) voting policy direct action on ESG issues? For each issue, please indicate the extent of direction.
EnvironmentalTo a large extent
SocialTo a large extent
GovernanceTo a large extent
33. Does your (proxy) voting policy apply to all voting regions (where possible)?Yes
34. Please indicate how your (proxy) voting policy can be obtained (a URL would be sufficient):http://www.inhance.ca/ror/esgmandate.aspx
35. Do you ensure that voting is done in accordance with your (proxy) voting policy?Yes for all
36. What percentage of total votes cast were against management? (in %)40
37. What percentage of shareholder resolutions relating to environmental, social or governance issues was supported? (in %)
Environmental100
Social100
Governance80
38. Do you conduct (proxy) voting on behalf of your clients?Yes - According to our own policy
39. How many shareholder resolutions related to RI/ESG issues did you participate in during 2007?
As lead filer10
As co-filer0
Planning to be lead filer in 200810
Planning to be co-filer in 20080
40. How were portfolio companies engaged with in 2007? Please check all that apply.Internal staff engaged portfolio companies directly,Internal staff engaged portfolio companies collaboratively
41. Do you systematically bring RI/ESG issue-related engagement opportunities to your clients?To a large extent
43. How many portfolio companies did you engage directly/were engaged on your behalf on ESG issues in 2007?
 
Extensive engagement
Moderate engagement
Basic engagement
Environmental7130
Social340
Governance000
44. What RI/ESG-related issues were addressed in your shareowner engagement initiatives? Please check all that apply.Climate change,Environment,HIV/AIDS,Health,Health and safety,Human rights,Other (please specify): 'Subprime loan exposure'
45. How were RI/ESG issue-related engagement targets and topics identified? Please check all that apply.Sector exposure,Risk profile
46. Do you set RI/ESG issue-related engagement objectives and attempt to evaluate success?To a large extent
47. Have you sought evidence relating to the effectiveness of your active ownership strategy? Please check all that apply.(Written) commitment to improve a particular ESG issue,Improved disclosure,Shareholder resolutions withdrawn after successful negotiations with portfolio companies,Satisfactory percentages of (proxy) votes in favour of filed or co-filed shareowner resolutions
48. What was your most significant achievement in 2007 in relation to your implementation of Principle 2?Successful negotiation of 9 resolutions.
49. What was your biggest barrier in 2007 with relation to your implementation of Principle 2?Competing demands on time and resources
50. Please add any overall comments and clarifications related to Principle 2 here.Enter text response here.
Principle 3
51. Have you asked that investee companies (or other investment entities) produce standardized reporting on their RI/ESG issue policies, practices or performance (within annual financial reports or other formats)?To a large extent
52. What format of standardized reporting on RI/ESG issue policies, practices or performance have you requested?Global Reporting Initiative (GRI),Carbon Disclosure Project (CDP)
53. Have you provided feedback to investee companies (or other investment entities) on their reporting on RI/ESG issues?To a large extent
54. Have you sought information from companies regarding their adoption of/adherence to norms, standards, codes of conduct or international initiatives related to RI/ESG issues?
AdoptionTo a large extent
AdherenceTo a large extent
55. Which norms, standards, codes of conduct or international initiatives related to RI/ESG issues have you sought information about from companies, with regard to their adoption of/adherence to?UN Global Compact,Equator Principles,International Labour Organization standards
56. What was your most significant achievement in 2007 in relation to your implementation of Principle 3?Adoption of the Equator Principles by companies in the portfolio and adoption of GRI reporting by companies in the portfolio.
57. What was your biggest barrier in 2007 with relation to your implementation of Principle 3?Competing demands for staff time and resources.
58. Please add any overall comments and clarifications related to Principle 3 here.Enter text response here.
Principle 4
59. Are you considering RI/ESG requirements when searching for and selecting the following?
External investment managerNot applicable
Investment consultantNot applicable
Proxy votingYes
Engagement overlayNot applicable
Investment researchYes
Internal operations (for example, purchasing, travel, office space etc.)Yes
Other (Please specify):Not applicable
60. Have you linked the following to performance on RI/ESG issues?
Investment monitoringNot applicable
Incentive structure (internal investments)Not applicable
Incentive structure (external investments)Not applicable
Contractual relationships with external investment managersNot applicable
61. Are the default pension funds or retirement plans offered to your employees also signatories to the PRI?Not applicable
62. To what extent do you encourage your service providers to become PRI signatories?To a moderate extent
63. To what extent do you encourage your clients to become PRI signatories?To a moderate extent
64. To what extent do you encourage peer organisations to become PRI signatories?To a moderate extent
65. Do you have evidence that you have played a role in the improved integration of RI/ESG issues by external investment managers?Not at all
66. Does your broker evaluation process include an ESG component or do you have a budget to pay cash for ESG broker research?No Answer
67. Have you revisited any relationships with service providers in light of RI/ESG issue-related capabilities?No
68. Have you engaged in dialogue, lobbying or initiatives pertaining to government policy and/or industry regulations (for example, stock exchanges, accounting standards) related to RI/ESG issues in 2007?To a large extent
69. What was your most significant achievement in 2007 in relation to your implementation of Principle 4?developing a business relationship with major financial institution based on responsible investment mandate using integrated analysis approach.
70. What was your biggest barrier in 2007 with relation to your implementation of Principle 4?Lack of evidence of direct implementation by large institutions.
71. Please add any overall comments and clarifications related to Principle 4 here.Enter text response here.
Principle 5
72. Did you use the PRI Engagement Clearinghouse in 2007?Used clearinghouse
73. Did your use of the clearinghouse result in subsequent action or collaboration with other signatories?No
74. Please elaborate on how the PRI Engagement Clearinghouse could be made more useful:More participation by signatories.
75. To what extent do you participate in the following RI/ESG issue-related collaborative engagement initiatives and/or industry associations? For those not listed, please use the "other" field:Carbon Disclosure Project,Regional social investment organisation (for example SIF or UKSIF),Other (please specify): 'Canada's Social Investment Organization'
76. Please indicate the three RI/ESG issue-related collaborative engagement initiatives and/or industry associations that you participated in most extensively and indicate how you did so:
Carbon Disclosure ProjectThrough engaging companies in our portfolio to encourage greater participation in the CDP.
Regional social investment organisation (for example SIF or UKSIF)Participation in and presentation for biennial conference. Participation in the Board of the Social Investment Organization.
Other (please specify)
No applicable
77. What was your most significant achievement in 2007 in relation to your implementation of Principle 5?Successful encouragement of portfolio companies in particpation in the CDP.
78. What was your biggest barrier in 2007 with relation to your implementation of Principle 5?Time required to develop deeeper collaborations.
79. Please add any overall comments and clarifications related to Principle 5 here.Enter text response here.
Principle 6
80. Have you disclosed how RI/ESG issues are integrated into your investment processes?Yes - to the public
81. Please indicated how this disclosure of how RI/ESG issues are integrated into your investment processes can be obtained (a URL would be sufficient):www.inhance.ca Through our mutual fund prospectus.
82. To what extent do you disclose your annual (proxy) voting record?Disclose votes and guidance explaining votes
83. Please indicated how your (proxy) voting record can be obtained (a URL would be sufficient):http://www.inhance.ca/ror/esgmandate.aspx
84. Do you systematically report (privately and/or publicly) on your RI/ESG issue-related engagement activities, results and progress?To a large extent
85. Please indicate how your reporting on RI/ESG issue-related engagement activities, results and progress can be obtained (if it is publicly available, a URL would be sufficient):Through: www.inhance.ca
88. Are you undertaking any additional efforts to raise awareness of the PRI and RI/ESG issues amongst stakeholders?To a large extent
89. What evidence do you have of the impact on external investment manager practices? Please check those that apply.Not applicable
90. Have you sought to determine what impact your overall RI/ESG issue-related efforts (voting and engagement, investment decision making, disclosure, etc.) have had on corporate behavior or performance?To a large extent
91. Have you sought to determine what impact your RI/ESG issue-related approach has had on the performance of your portfolio?To a moderate extent
92. Have you sought to determine what impact your RI/ESG issue-related efforts, requests and guidance have had on the consideration of RI/ESG issues by your external service providers excluding external investment managers (for example: research providers, consultants, etc.)?To a small extent
93. Do you report on progress and/or achievements relating to the PRI or RI, and how would you like to publish your response to this assessment?Please automatically publish our responses to the reporting and assessment tool in full on the PRI website
94. What was your most significant achievement in 2007 in relation to your implementation of Principle 6?Development of a DVD on our approach to responsible investing
95. What was your biggest barrier in 2007 with relation to your implementation of Principle 6?Constraints on time and resources
96. Please add any overall comments and clarifications related to Principle 6 here.Enter text response here.
Emerging Markets
97. To what extent have you actively thought about how to integrate RI/ESG issues within investment decision making and ownership practices with regards to emerging markets investments?To a moderate extent
98. Please describe your activities with regards to integrating RI/ESG issues within investment decision making and ownership practices with regards to emerging markets investments.We review emerging market investments according to ESG criteria as part of our investment decision making process.
99. To what extent do you believe the integration of ESG issues in emerging markets is as relevant as the integration of ESG issues in other markets?To the same extent
100. To what extent did you employ the following approaches in your 2007 active ownership strategy in emerging markets?
(Proxy) votingNot at all
Direct engagement conducted privatelyTo a small extent
Direct engagement conducted publiclyNot at all
Collaborative engagementTo a moderate extent
Filing shareholder resolutionsNot at all
Co-filing shareholder resolutionsNot at all
Other (Please specify): ** Not at all
101. To what extent have you developed a comprehensive RI/ESG engagement capability regarding business activities in emerging markets?Not at all
102. Please list the three most often addressed RI/ESG-related issues in your shareholder engagement initiatives in emerging markets?
1.Reporting on ESG performance
2.Addressing climate change risks
3.Involvement in micro-finance
103. Have you sought information from companies regarding their adoption of/adherence to norms, standards, codes of conduct or international initiatives related to RI/ESG issues in emerging markets?
AdoptionTo a moderate extent
AdherenceTo a moderate extent
104. Do you take RI/ESG considerations into account when selecting and approving emerging markets external investment managers?To a large extent
105. Do your consultants factor RI/ESG issues into their short listing of emerging markets external investment managers?To a large extent
106. Do you have evidence that you have played a role in the improved integration of RI/ESG issues by external investment managers investing in emerging markets?No Answer
107. To what extent have you worked together with other investors to improve the effectiveness of implementing the PRI in emerging markets?To a moderate extent
108. Are you undertaking any additional efforts to raise awareness of RI/ESG issues in emerging markets?To a small extent
109. Have you sought to determine what impact your RI/ESG issue-related efforts (voting and engagement, investment decision making, disclosure, etc.) have had on corporate behaviour or performance in emerging markets?Not at all
110. Please add any overall comments and clarifications related to the PRI in emerging markets here.**
111. What is your top PRI-related goal/priority for emerging markets in 2008?Increasing disclosure and reporting by companies we invest in.
Closing Comments
112. Why did your organisation join the PRI?To highlight the importance of ESG issues for intitutional investors.
113. Please describe the benefits you have enjoyed as a result of signing the PRI:We have witnessed a greater interest in products managed with an RI mandate.
114. To what extent do you believe the PRI has succeeded in changing investor behaviour and/or raising awareness or capacity on RI/ESG issues? Do you have any examples you could share?To a large extent. When undertaking sharehodler engagement companies disclose how large institutional investors have begun engaging on these same issues.
115. What are the top three activities the PRI Secretariat could undertake to enhance and encourage further implementation of the PRI by current and prospective signatories?
1.Develop workshops on engagement.
2.Continue to support academic research.
3.Broaden the adoption of the Principles.
116. What are your top three PRI-related goals/priorities for 2008?
1.Increase engagement activities.
2.Work more collaboratively.
3.Educate investors on the importance of ESG and long term value.
117. Please rank the six principles from most difficult to implement to least difficult to implement:
Most difficult
1
Principle 5
2Principle 6
3Principle 4
4Principle 3
5Principle 2
Least difficult
6
Principle 1