Manager Selection Process: TPT has drafted an internal document entitled 'key attributes of RI manager'. This outlines our core preferences in respect of appropriate remuneration structures, long-term mind sets, low portfolio turnover, strong risk management, and decision-making processes that embed ESG. We also use Mercer's Global Investment Manager Database to conduct manager searches. This database allows us to filter long lists of managers using Mercer's ESG ratings.
All of the managers short-listed by TPT are required to undergo a thorough interview process followed by detailed operational and legal due diligence, with selection and due dilligence including an examination of capabilities from an RI/ESG perspective.
Manager Appointment: All of the legal contracts we put in place with new managers reflect our expectations on RI with the specific criteria tailored according to the asset class and investment strategy in question. This includes, where possible, the requirement to explicitly consider the impact of climate change in this investment underwriting process, as well as the use of fund structure located in jurisdictions highly rated by the OECD.
Manager Monitoring: As part of TPT’s investment governance the Investment Management Team (IMT) meets with all of its investment managers on at least an annual basis. The discussions with our managers are an opportunity to receive updates on the firm’s overall business, its people and the investment process and these meetings are used to inform two ratings, an overall rating and an RI rating.
TPT’s manager ratings are both formally reviewed by the Trustee body and TPT’s Senior Management Team (SMT) on at least a quarterly basis via TPT's Manager Dashboard.
Further information and a summary of our RI ratings is available in our 2018 Responsible Investment report online.
TPT's Manager Selection and Appointment is featured on page 73 of the PRI's Practical Guide to ESG Integration for Equity Investing as an example of best practice for asset owners in the PRI's Report https://www.unpri.org/listed-equity/a-practical-guide-to-esg-integration-for-equity-investing/10.article