Please explain why you do not engage directly and do not require external managers to engage with companies on ESG factors.
Our Fixed Income division participates in issuer meetings hosted by our Equity division and is given the opportunity to participate in discussions with issuer board members and/or their senior management. Members of our Fixed Income group also engage directly with fixed income issuers to discuss ESG-related factors that could influence the fundamental valuation of issuer/securities.
We do not engage with issuers on fixed income securitized securities. The instruments are typically issued by bank subsidiaries via special purpose vehicles, which pool various asset-backed obligations.
Our Adviser that oversees external money managers, Strategic Advisers LLC (“Strategic”), periodically receives, and reviews, updated external sub-advisers’ voting guidelines or policies; however, it does not currently have any specific mandates that would require additional controls or oversight practices regarding sub-advisers’ consideration of ESG issues.