King Irving Sura Pacific Alliance Fund


SURA Asset Management is a regional asset manager, with local offices in each Country comprising the Pacific Alliance region, as well as in other Latin American (Latam) Countries. It is the parent company of SURA Investment Management Mexico, S.A. de C.V. Sociedad Operadora de Sociedades de Inversion, the appointed manager for the Fund (SURA Investment Management).

SURA Asset Management is the largest provider of mandatory and voluntary pensions in Latin America, with a top three ranking in the Mexican, Colombian, Peruvian and Chilean market as measured by assets under management and the number of clients.

With over US$112 billion Assets under Management, 9 thousand employees and 17 million clients, Sura Asset Management have a presence in six countries within the Latin American region {a// numbers as at 30 September 2015).

They have a strong focus on ethics and compliance, as well as a strong risk management framework.

SURA Asset Management and Grupo SURA, its parent, is deeply committed to sustainability. Grupo SURA as a publicly listed company is part of the Dow Jones Sustainability Index.

Incorporation of ESG in investment process

Environmental, social and governance factors are part of the Fund’s investment process, as the investment manager, SURA, views them as important factors in explaining growth prospects, especially in inefficient Emerging Markets with asymmetric information. Analysis and application of ESG factors are accordingly integrated in the investment process.

As a result of this, analysts include ESG considerations in the securities valuation models. The analysis undertaken by the research teams considers the relative attractiveness of a particular company regarding its performance on Environmental, Social and Governance considerations.

This process assesses data relating to: sustainability such as water use; discrimination and human talent development; quality management, strategic clarity and success in project implementation; achievement of goals; and, more generally, any other catalyst of value attaching to the company in positive or negative terms. The relevant question for this part of the process is, what are the non-financial risks of the company in producing sustainable returns for shareholders.

Even though SURA has a veto list for some industries, they prefer to use ESG to help in identifying opportunities to buy, sell or perform tactical trades. Environmental aspects are more difficult to use in a shorter term horizon, but nonetheless are taken into account.

Adoption by the Manager of ESG Governance standards

The Manager has started the process to implement regional standards so that it may become a UNPRI signatory. To this end, the various required ESG compliance activities are currently being undertaken.

In addition to this, the Manager promotes ESG awareness and knowledge amongst its investment teams and processes.

Oversight of application of ESG factors

As part of our manager due diligence processes, we review the progress of the investment manager towards full compliance with the UNPRI.