As we are an asset manager company, most of our externally managed assets are entrusted to other asset managers through mainly partnerships (for example with Generation IM and Affirmative IM). We noticed that many questions of this module are actually designed for Asset owners that must have comprehensive asset managers selection process (Selection through RFP, reporting requirements etc...). However, when it comes to appoint external asset managers, we apply the following two steps:
1. We require external fund managers to comply with our Group Policies on exclusions (e.g. controversial weapons and food commodities)
2. We apply our own ESG scoring and controversy diagnostic to the external fund's portfolio to measure its performance before selecting it, and keep on applying the same ESG scoring on a regular basis as long as the fund remains on our masterlist. Funds with poor ESG performance and /or high controversy exposure will not be selected, or will be removed from the selection if no longer compliant.