what makes a great rating agency?
DESCRIPTION
A presentation by Rolf D. Häßler at TBLI CONFERENCE EUROPE 2008.TRANSCRIPT
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TBLI Research
What makes a great rating agency?
Rolf D. Häßler
Director Business Development
oekom research AG
TBLI 2008
November 14th, 2008
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about us
Experience
Expertise
Customized services
Independence
– corporate & country research– universe covers the major stocks and bonds– highest quality standards
– total staff of 30– experienced and multi-disciplinary team of 22 analysts– Scientific Advisory Board
– partner of various asset managers and inst. investors– clients primarily from AT, CH, DE, FR, IE, IT, JP– advising funds and mandates with a total volume
of EUR 90bn (June 08)
– commercial experience since 1993– independence– spin-off from ökom publishing house
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Asset managers, banks, investment companies
Allianz Global Investors FranceAGICAMAmpegaGerling Investment Baden-Württembergische BankBank für Orden und MissionBankhaus Schelhammer & SchatteraBank VontobelBayern LBBayernInvestBNP Paribas Asset ManagementBÖAG Börsen AG Hamburg/Hannover Daiwa Asset ManagementDZ-BankFortis InvestmentsGLS GemeinschaftsbankHSBC InvestmentsHypoVereinsbankKD-BankKepler FondsLandesbank Baden-Württemberg
Institutional investors
Deutsche Bundesstiftung UmweltDiocese of Gurk-KlagenfurtDiocese of LinzDiocese of Rottenburg-StuttgartEvangelical Church of Hesse and NassauEvangelical Lutheran Church in BavariaRetraite Additionnelle de la Fonction Publique (RAFP)Munich Re GroupReligious ordersPensionskasse NovartisVBV Pensionskasse
Extract from our client list
references
LBBW Asset ManagementMEAGMetzlerMetzler Asset ManagementMorgan StanleyNORDCONNordLBÖkoWorld LuxPioneer InvestmentsProventusRaiffeisen Capital ManagementSal. OppenheimSEB InvestSchoellerbanksks VermögensverwaltungSparkasse OberösterreichSteyler BankUnicreditVINIS
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research universeoekom Corporate Rating
– approx. 1,100 international companies– small, mid & large caps
large caps (approx. 825)
– all major sectors– indexes covered: MSCI World: 75%
small caps (approx. 175)
– focus on companies from industries with strong links to sustainable development (potentials)
bonds (approx. 100)
– public companies and supranational organisations– other banks and bond issuers
Companies
Countries
oekom Country Rating
– 50 countries incl. OECD, Russia, new members of the EU and leading Asian countries
oekom Emerging Markets Risk Assessment
– Country profiles with a focus on the social and environmental risks in emerging and developing countries
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products & services
oekom Responsible Investment Products
oekom Responsible Investment Services
• Responsible Investment Advisory Service
• Screening Services
• Alert Services
• Client Portal
oekom Responsibility Reports
• oekom Corporate Rating Report
• oekom Country Rating Report
• oekom Industry Reports / Industry Focus
• oekom Position Papers
oekom Responsible Investment Portfolios & Indexes
• oekom Sustainable Lifestyle Portfolio
• oekom Biodiversity & Ecosystem Services Portfolio
• oekom Climate Change Portfolio
• Global Challenges Index (GCX)
oekom Risk Assessments
Countries
• oekom Emerging Markets Risk Assessment (EMRA®)
Corporates
• Climate Risk Portfolio Check / Industry Climate Risk Index (ICRI)
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oekom corporate rating
oekom
Corporate Rating
Environmental Rating
Environmental management
Products and services
Eco-efficiency
Social Rating
Staff and suppliers
Society and product responsibility
Corporate governance and business ethics
6 categories
2 dimensions
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oekom corporate rating
comprehensive measures to increase transport efficiency
comprehensive community involvement policy and management
significant numbers of sales of hybrid vehicles
limited publicly available information on employees and suppliers
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oekom corporate rating
AbortionAlcoholBiocidesChlororganic mass productsEmbryo researchGamblingGMOsMilitaryNuclear powerPornographyTobacco
Client-specific exclusion criteria
Controversial
business areas
Animal testingBusiness malpracticeChild labourControversial environmental practicesHuman rights violationsLabour rights violations
Controversial
business practices
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update processes
0 3 6 9 12 15 18 21 24
every two years:
update incl. company feedback
continuously:
current incidents such as controversies, accidents, mergers
within 3 months:
integration of new company reporting
annually:
update process without company feedback
Up-to-date accuracy of information based on a staged update process
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core values
Components of a “great rating agency”
Independence
Highest possible degree of independence of agency and analysts
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Transparency
Transparency with regard to criteria and process for relevant stakeholders
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Quality
Highest quality standards for research and ratings
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Methodology
Consistent and stringent rating methodology
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independence
•we have shareholders who guarantee our independence
•we offer registered shares with restricted transferability
•we apply rigorous codes of conduct for every analyst
•we do not provide consulting services for companies which could help them to
improve their rating
•we do not conduct financial research or engage in asset management
Challenge
Highest possible degree of independence of agency and analysts
What we do
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transparency
•we offer complete transparency with regard to criteria and weightings
•we provide detailed information on the rating process
•we provide comprehensive information about the results of ratings to rated
companies free of charge
•we disclose the sources we use
Challenge
Transparency with regard to criteria and processes for relevant stakeholders
What we do
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quality
•we support CSRR-QS and participate in the audit process; we are among the first
agencies to be certified according to the new standard
•we employ a quality manager with company-wide responsibility
•we limit the number of companies covered by an analyst to ≤ 50
Challenge
Highest quality standards for research and ratings
What we do
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methodology
•we base our ratings on a consistent and stringent understanding of sustainability
•we provide comprehensive training for all our analysts
•we conduct continuous reviews as part of the ongoing development of criteria and
methodology
•we do not outsource significant components of value creation to other service
providers
Challenge
Consistent and stringent rating methodology
What we do
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Rolf D. Häßler
Director Business Development
oekom research AG
Goethestr. 28
D-80336 Munich
Germany
Tel: +49/89/54 41 84-57
Fax: +49/89/54 41 84-99
E-mail: [email protected]
Web: www.oekom-research.com
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