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UNISON Staff Pension Scheme

PRI reporting framework 2020

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

Outputs and outcomes

SAM 08. Percentage of externally managed assets managed by PRI signatories (Private)


SAM 09. Examples of ESG issues in selection, appointment and monitoring processes

09.1. Provide examples of how ESG issues have been addressed in the manager selection, appointment and/or monitoring process for your organisation during the reporting year.

Topic or issue
          Appointment of Wellington as social impact fund manager
        
Conducted by
Asset class
Scope and process

Whilst the Trustees liked the idea of a social impact fund they wanted to ensure that the companies in which the fund was invested were meeting a genuine need rather that quasi-privitisation.  The Trustees with the assistance of their /investment Consultants posed a series of challenging questions to Wellington. 

Outcomes

The detailed response from Wellington and examples given gave them comfort that the fund was meeting societal needs and so the invesment was made during Q1 2020

Topic or issue
          Appointment of Wellington as social impact fund manager - change of lead portfolio manager
        
Conducted by
Asset class
Scope and process

The Trustees had already agreed to place a £25 million investment within the Wellington Global Impact fund. As the paperwork was being processed, Wellington Management had informed Mercer that Eric Rice, portfolio manager of the Global Impact strategy, would be leaving Wellington Management in October 2019 and that Tara Stilwell would assume the lead portfolio management responsibilities.

Following Mercer’s review of these changes Wellington Management had retained a B+ rating and ESG1 rating on this strategy, as Mercer had gained enough comfort from their findings. The Investment Committee had discussed the matter at their last meeting and felt that the Trustees could gain assurance from a call with Tara Stilwell and the wider Wellington Management team.

A call took place during the November Trustee Board meeting whereby the Trustees questioned Wellington around:

-Investment style and research approach

-Any near-term portfolio changes

-Avaliable resource

 

Outcomes

The call, together with Mercer's research, gave the Trustees the assurance they needed to proceed with the planned investment.

09.2. Additional information.


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