Describe how the ESG information reviewed and discussed affects the selection decision making process.[OPTIONAL]
The ESG assessment is an Integrated part of Storebrand's fund manager evaluation, not a seperate filtering process. We have developed a dedicated scorecard for Private Equity manager selection where ESG is one of five main categories. The scorecard covers the following categories. Investment strategy, Organisation, Historic Returns, Risk Management, Structure and ESG. We do an overall assessment of the fund managers performance on these categories. However a minimum points score must be achieved on each of the categories for a fund manager to be accepted.
Storebrand Asset Management acquired Cubera Private Equity in 2019, which advises funds that i.a. acquire secondary fund positions in Nordic private equity funds. Since the secondary strategy enters a fund in its realization stage, we will be unable to exercise direct influence on the fund manager’s investment decisions, as well as it relies on the prudent management of the underlying portfolio companies by the fund manager. Therefore, the assessment of the ESG proficiency level of the fund managers and the pre-acquisition risks related to the underlying portfolio companies are of paramount importance and form an integral part of our investment evaluation and decision-making process in the secondary strategy. By integrating the assessment of material ESG risks and opportunities on fund manager level into our financial assessment, our overall evaluation of the investment opportunity will be affected and may have an impact on execution as well as terms and conditions.