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University of Toronto Asset Management Corporation (re University of Toronto Endowment)

PRI reporting framework 2018

You are in Indirect – Manager Selection, Appointment and Monitoring » Outputs and outcomes

Outputs and outcomes

SAM 08. Percentage of externally managed assets managed by PRI signatories (Private)


SAM 09. Examples of ESG issues in selection, appointment and monitoring processes

09.1. Provide examples of how ESG issues have been addressed in the manager selection, appointment and/or monitoring process for your organisation during the reporting year.

Topic or issue
          ESG not specifically incorporated into segregated account IMA.
        
Conducted by
Asset class
Scope and process

A 2017 internal objective was to incorporate ESG integration language into all segregated account investment management agreements (IMA's).

During 2017, we approached relevant managers to further this objective.

Outcomes

By year-end 2017 we achieved this objective by including ESG integration language and ESG incident reporting requirements into each segregated account IMA.

Topic or issue
          ESG incorporation in passive index mandates
        
Conducted by
Asset class
Scope and process

During 2017, we joined a PRI working group to address the question of how ESG can be incorporated into passive investment mandates (in particular those focused on an index or factor replication). We participated in several discussions on the issues with other asset-owners and index providers.

While the group was largely equity investment focused, in the discussions we raised the difficulty of ESG incorporation in fixed income mandates where the benchmark is a single government bond index (developed world).

Outcomes

PRI staff are drafting a paper incorporating views and feedback of the working group participants.

Topic or issue
          Potential new private equity mandate in China
        
Conducted by
Asset class
Scope and process

During 2017, UTAM evaluated various private equity strategies, including several in China. In addition to various other investment factors, an important consideration was the commitment to responsible investment by the investment staff of the firm.

As part of the evaluation, we discussed the manager's responsible investing approach and specifically how it is applied in China.

We discussed this approach using specific examples of the manager's previous investments. We stressed the importance of responsible investing principles to us and became convinced that the manager shared a similar commitment. 

Outcomes

The manager agreed to provide specific reporting on their ESG practices as part of their annual reporting provided to limited partners.

UTAM considers the manager to be of high quality and obtained confidence that all relevant factors are considered as part of the manager's investment process, including ESG factors. UTAM committed capital to the manager in 2017. 

09.2. Additional information.


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