Fulcrum draws external managers' attention to its support for the UN PRI and encourages fund managers to be UN PRI signatories or explain why not. We also ask about the managers' ESG policy and how this impacts the fund.
We examine the level of appreciation of corporate governance that is on display by the external managers' management team. In particular, Fulcrum seeks to determine whether the quality, ethics and decision making on display is suitable given the external manager's role as stewards of assets. In addition, the relevant fund's Board of Directors is assessed as to whether they have the appropriate experience to provide the required degree of oversight and governance of the structure.
Fulcrum has resolved to (where possible) exclude certain stocks which breach its Responsible Investment Policy (including tobacco, controversial weapons and predatory lending) and all external managers are asked to avoid investing in such assets in accordance with limits set in our screening policy.