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APG Asset Management

PRI reporting framework 2018

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

Appointment

SAM 04. Appointment processes (listed equity/fixed income)

04.1. Indicate if in the majority of cases and where the structure of the product allows, your organisation does any of the following as part of the manager appointment and/or commitment process

04.2. Provide an example per asset class of your benchmarks, objectives, incentives/controls and reporting requirements that would typically be included in your managers’ appointment.

Asset class

Benchmark

ESG Objectives

          We require external managers in Listed Equity mandates to apply our Exclusion Policy.
        
          We include objectives related to the carbon reduction target in contracts with external managers for mandates in Listed Equity.
        

Incentives and controls

Reporting requirements

Benchmark

          We assign standard benchmarks to external managers contracted in Fixed Income.
        

ESG Objectives

          Our Exclusion Policy applies to all fixed income – SSA investments.
        

Incentives and controls

Reporting requirements

Benchmark

          We assign standard benchmarks to external managers contracted in Fixed Income.
        

ESG Objectives

          We require external managers in Fixed Income mandates to apply our Exclusion Policy.
        

Incentives and controls

Reporting requirements

Benchmark

          We assign standard benchmarks to external managers contracted in Fixed Income.
        

ESG Objectives

          We require external managers in Fixed Income mandates to apply our Exclusion Policy.
        

Incentives and controls

Reporting requirements

Benchmark

          We assign standard benchmarks to external managers contracted in Fixed Income.
        

ESG Objectives

          We require external managers in Fixed Income mandates to apply our Exclusion Policy.
        

Incentives and controls

Reporting requirements

Benchmark

          We assign standard benchmarks to external managers contracted in Private Equity.
        

ESG Objectives

          We require external managers in Private Equity mandates to apply our Exclusion Policy.
        
          A set of minimum ESG integration requirements applies to each new PE mandate.
        
          APG asks external managers in Private Equity to take the UN Global Compact principles into account when making and managing investments.
        

Incentives and controls

Reporting requirements

Benchmark

          We assign standard benchmarks to external managers contracted in Property.
        

ESG Objectives

          We require non-listed property managers to participate in the GRESB benchmark and to reach 4 or 5 star status in this benchmark over time.
        

Incentives and controls

Reporting requirements

Benchmark

          We assign standard benchmarks to external managers contracted in non-listed Infrastructure.
        

ESG Objectives

          We require non-listed infrastructure managers to participate in the GRESB Infra benchmark
        

Incentives and controls

Reporting requirements

04.4. Indicate which of these actions your organisation might take if any of the requirements are not met

04.5. Provide additional information relevant to your organisation's appointment processes of external managers. [OPTIONAL]

          APG is tasked with the implementation of the RI policies of its clients for the total asset portfolio including both listed and non-listed assets. APG is required to report on policy implementation via regular reports to
clients. Breaches of the RI Policy are also required to be reported if discovered. APG ensures that key ESG requirements are reflected in the contractual arrangements with third party external managers. Therefore, contracts with such managers will typically include a mix of the following:
 • acknowledgement of APG's responsible investment requirements and exclusion policy requirements 
• regular reporting requirements, including frequency and content 
• reporting on Sustainable Development Investments 
• specific requirements regarding investments in high risk industries or countries 
• acknowledgement and adherence to certain international standards (e.g. IFC Performance Standards) 
• opt-out rights for certain types of investment 
• fund governance requirements modelled on ILPA principles. 
• mandatory GRESB participation for real estate managers. 
The final form of legal requirements regarding responsible investment criteria will depend on the individual circumstances of each investment.
        

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