What makes a great rating agency?
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What makes a great rating agency?

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A presentation by Rolf D. Häßler at TBLI CONFERENCE EUROPE 2008.

A presentation by Rolf D. Häßler at TBLI CONFERENCE EUROPE 2008.

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What makes a great rating agency? What makes a great rating agency? Presentation Transcript

  • TBLI Research What makes a great rating agency? Rolf D. Häßler Director Business Development oekom research AG TBLI 2008 November 14th, 2008 1
  • about us – corporate & country research – universe covers the major stocks and bonds – highest quality standards – total staff of 30 Experience – experienced and multi-disciplinary team of 22 analysts – Scientific Advisory Board Expertise – partner of various asset managers and inst. investors – clients primarily from AT, CH, DE, FR, IE, IT, JP Customized services – advising funds and mandates with a total volume of EUR 90bn (June 08) Independence – commercial experience since 1993 – independence – spin-off from ökom publishing house 2
  • references Extract from our client list Asset managers, banks, investment companies Allianz Global Investors France LBBW Asset Management AGICAM MEAG AmpegaGerling Investment Metzler Baden-Württembergische Bank Metzler Asset Management Bank für Orden und Mission Morgan Stanley Institutional investors NORDCON Bankhaus Schelhammer & Schattera Bank Vontobel NordLB Deutsche Bundesstiftung Umwelt Bayern LB ÖkoWorld Lux Diocese of Gurk-Klagenfurt BayernInvest Pioneer Investments Diocese of Linz BNP Paribas Asset Management Proventus Diocese of Rottenburg-Stuttgart BÖAG Börsen AG Hamburg/Hannover Raiffeisen Capital Management Evangelical Church of Hesse and Nassau Daiwa Asset Management Sal. Oppenheim Evangelical Lutheran Church in Bavaria DZ-Bank SEB Invest Retraite Additionnelle de la Fortis Investments Schoellerbank Fonction Publique (RAFP) GLS Gemeinschaftsbank sks Vermögensverwaltung Munich Re Group HSBC Investments Sparkasse Oberösterreich Religious orders HypoVereinsbank Steyler Bank Pensionskasse Novartis KD-Bank Unicredit VBV Pensionskasse Kepler Fonds VINIS Landesbank Baden-Württemberg 3
  • research universe oekom Corporate Rating – approx. 1,100 international companies – small, mid & large caps large caps (approx. 825) – all major sectors – indexes covered: MSCI World: 75% Companies 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 oekom Country Rating – 50 countries incl. OECD, Russia, new members of the EU and leading Asian countries Countries oekom Emerging Markets Risk Assessment – Country profiles with a focus on the social and environmental risks in emerging and developing countries 4
  • products & services oekom Responsible Investment Products oekom Risk Assessments oekom Responsible Investment Services Corporates • Responsible Investment Advisory Service • Climate Risk Portfolio Check / Industry Climate Risk • Screening Services Index (ICRI) • Alert Services • Client Portal oekom Responsibility Reports Countries • oekom Corporate Rating Report • oekom Emerging Markets Risk Assessment (EMRA®) • 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) 5
  • oekom corporate rating oekom Corporate Rating 2 dimensions Social Rating Environmental Rating 6 categories Staff and suppliers Environmental management Society and product responsibility Products and services Corporate governance and Eco-efficiency business ethics 6
  • oekom corporate rating significant numbers of sales of hybrid vehicles comprehensive community involvement policy and management comprehensive measures to increase transport efficiency limited publicly available information on employees and suppliers 7
  • oekom corporate rating Client-specific exclusion criteria Abortion Alcohol Biocides Chlororganic mass products Embryo research Controversial Gambling business areas GMOs Military Nuclear power Pornography Tobacco Animal testing Business malpractice Controversial Child labour business practices Controversial environmental practices Human rights violations Labour rights violations 8
  • update processes Up-to-date accuracy of information based on a staged update process continuously: current incidents such as controversies, accidents, mergers within 3 months: integration of new company reporting annually: update process without company feedback every two years: update incl. company feedback 0 3 6 9 12 15 18 21 24 9
  • core values Components of a “great rating agency” 1 Independence Highest possible degree of independence of agency and analysts 2 Transparency Transparency with regard to criteria and process for relevant stakeholders 3 Quality Highest quality standards for research and ratings 4 Methodology Consistent and stringent rating methodology 10
  • independence Challenge Highest possible degree of independence of agency and analysts What we do • 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 11
  • transparency Challenge Transparency with regard to criteria and processes for relevant stakeholders What we do • 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 12
  • quality Challenge Highest quality standards for research and ratings What we do • 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 13
  • methodology Challenge Consistent and stringent rating methodology What we do • 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 14
  • contact 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: rolf.haessler@oekom-research.com Web: www.oekom-research.com 15