As active managers, we do our best to identify and avoid companies that behave improperly. In addition to maintaining close and regular dialogue with our holdings, we engage an external consultant to review our portfolio in terms of adherence to internationally agreed and generally accepted conventions and norms. This is conducted before we invest, reconfirmed twice annually in the form of full screening of all fund portfolios as well as alerts of any allegations in between the formally scheduled screenings.
If we receive information that a holding does not live up to our requirements, the Responsible Investment Board takes action in consultation with the relevant fund manager. We have a number of possible courses of action:
- The manager seeks additional information and discusses the holding with the Responsible Investment Board.
- The manager contacts the company with regard to our issues.
- Carnegie Fonder’s CEO makes more formal contact with the holding’s CEO or chairman.
- We contact other shareholders for joint ownership dialogue.
- If the response is not satisfactory, and the company does not show an adequate willingness to change, we can choose to divest the holding.