The Company incorporates ESG in the manager selection process. Söderberg & Partners group-wide sustainability analysis and rating of funds is utilized as valuable input when screening for external managers. The sustainability analysis covers positive selection and responsible ownership at management company level and fund level. This results in a shortlist of external managers from which manager for the investment in scope is selected based on a qualitative analysis including ESG parameters that are material for the investment.
Before any investment is initiated, questionnaires are sent out focusing on the manager's sustainability processes alongside the Company's Policy for Responsible Investment. Follow-up meetings are conducted where various ESG topics are discussed on frequent basis. As an active investor, the Company believes engagement supports the managers to continue their advancement in ESG.
The Funds will not invest in other funds with severe or systematic ESG controversies. The investment in other funds should be in compliance with the our Policy for Responsible investments and should not be made if the Funds deem that the underlying funds are not likely to address identified problematic issues within an acceptable amount of time. Should the monitoring show that the management of the underlying fund fails to perform on issues related to ESG, we shall act by taking one or several of the following measures; (1) Initiate a dialogue with the management of the fund; (2) engage with the management of the fund; or (3) sell our holdings.