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Barclays Asset Management Limited

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
          Manager ESG assessment and monitoring
        
Conducted by
Asset class
Scope and process

We have included ESG questions into our external fund manager due diligence questionnaires. We derive an ESG score from these, which directly feeds into our overall manager score.

Outcomes

By integrating our ESG score with our overall investment score, we aim to integrate ESG considerations more fully into our investment process. We are also able to gain a large amount of information on the approaches of our managers and how these change over time.

Topic or issue
          Quantitative ESG assessments
        
Conducted by
Asset class
Scope and process

A decision was made to review existing & potential new 3rd Party data providers to identify the best quantitative data available for ESG metrics. 

We reviewed third party data providers to give us quantitative insights into the ESG characteristics of our funds over time. We spent a lot of time on assessing different providers, which has given us insights into how our managers use the data and will benefit our work in 2018 as we build new insights into our standard investment analysis.

The vendor selection process included four options - Vigeo / Eiris, Sustainalytics, FTSE & MSCI. Demo sessions were attended by the anticipated main users of the data - Investment Analytics, Manager & Fund Selection, DPM - Charities, Specialist Investment Management. These teams were then also involved in vendor portal testing & feedback and providing feedback on the agreed criteria to contribute to the ultimate decision.

Outcomes

The addition of quantitative ESG data about the holdings in funds, alongside qualitative information around the investment process is very useful to understand how ESG themes are implemented. Additionally, the incorporation of this data into analysis which includes more traditional financial metrics is a powerful way to improve integration. The process that included multiple members of various teams ensures that the end users have bought into the new tool and the possible benefits.

Topic or issue
          Impact fund
        
Conducted by
Asset class
Scope and process

The Barclays Multi-Impact Growth Fund is a comprehensive multi-asset solution, encompassing institutional due diligence, strategic diversification, simplicity and daily liquidity. And, it gives access to impact managers and direct investments in a readymade investment product that reports the impacts it's generated.

Outcomes

We have created a market leading, innovative fund, which aims to maximise positive real world impacts as well as financial returns. The experience of creating this fund has proved very useful for our broader ESG integration efforts.

09.2. Additional information.


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