LocalTapiola Asset Management has a formalized process when selecting new investment managers. In addition to direct equity and fixed income investments, around 26% of our AUM is invested through externally managed funds.
In externally managed funds the ESG analysis is performed based on our RI and ESG policies, when an external investment manager is chosen. Based on this analysis a ESG score is given to each manager. This score is reviewed on a regular basis. As we do not have an open architecture we choose carefully the group of external fund managers with whom we do business. We aim to maintain a long-term relationship with all our external fund managers and therefore get to know how they do business. We also meet regularly with external manager representatives and include ESG issues into the dialogue. The RI reporting performed by the external managers is also assessed.
At the end of 2016, 86 % of our external managers were signatories to the UN PRI.The percentage share is somewhat lower than in 2015, as we have appointed some new external managers in alternative investments.