While selecting a new external manager for an Emerging Market Debt mandate, ESG research is performed on the proposed portfolio. In the current external mandates, ACTIAM has a list of sovereigns and companies which are excluded from investing. This list is the outcome of our analysis assessing whether companies/countries comply with our Investment Policies.
Nevertheless, this list may not be complete, since ACTIAM did not screen every issuer (off-benchmarks) especially within High Yield and Emerging Market Debt, meaning there could be issuers in the investment universe that do not comply with our FIP but are not on the exclusion list. This can result in a purchase by external manager of issuers in which ACTIAM does not want to invest. ACTIAM wants, therefore, to prevent external managers to purchase bonds that are violating our FIP and not in the best interest of our client. To address this issue, ACTIAM has added relevant language to the investment guidelines directed to external managers.