Indicate for which of the following externally managed asset classes your organisation, and/or your investment consultants, consider responsible investment factors in investment manager:
(b) Appointment (investment management agreements/contracts), and
Provide a brief description of how your organisation includes responsible investment considerations in your investment manager selection, appointment and monitoring processes.
Investment manager selection:
- ESG Policy and UN PRI Signatory: during the commercial due diligence phase Akina analyzes the investment managers ESG policy and checks if the manager is signatory of the UN PRI initiative as well as his intention towards joining the initiative. In cases where the ESG policy is not clear or even missing Akina is pro-actively asking for clarification / development of the policy.
- Corporate governance: some of the key elements during the commercial due diligence phase related to corporate governance topics are internal leadership (stability, motivation, continuity and dedication of the team), team composition (relevant experience of key team members) and institutionalization (ownership of the management company, remuneration and incentivation of key employees, decision making process and composition of investment committee as well as investor base composition)
Investment manager appointment:
- LPA negotiation: Akina strives to be always very early in the investment process of the short-listed funds. The aim is to make sure that Akina is able to take active part of LPA negotiations where key focus is set on Corporate Governance and Conflict of Interest related topics.
- Advisory Board Seat: In most of its investments Akina managed vehicles have an Advisory Board Seat.
- Advisory Board / AGM participation: Akina sets high priority on participating in Advisory Board / AGM Meetings of its underlying investments, furthermore whenever possible/meaningful Akina organizes informal meetings with its fund managers. After each official meeting a internal memo is being distributed to the Monitoring team. Akina ensures that also in the few cases where a physical participation in Advisory Board Meetings is not possible it exercises its vote in advance of the official meeting.
- Semi-annual monitoring review: The Akina monitoring team performs twice a year an independent monitoring review of its underlying investments where it analyzes funds and portfolio company development. Key elements of each semi-annual review process related to ESG issues are (i) team and organizational changes, (ii) compliance with the investment strategy and (iii) significant ESG issues / policy changes. Fund managers with worrying development over the past six months are put on the Watchlist and the Investment Committee decided on future measures and actions that have to be taken.
Additional information. [Optional]