If your organisation does not integrate ESG factors into investment decisions on your externally managed assets, explain why not.
We see that the types of HF strategies that we wish to have in the portfolio as a diversifier for our beta are such quantitative strategies where ESG incorporation in the asset selection is not relevant and applicable. Governance is paramount, but E and S not necessarily. Thus, full ESG criteria is not incorporated in all HF selection.
Provide a brief description of how your organisation includes responsible investment considerations in your investment manager selection, appointment and monitoring processes.
As per our ESG policy all investment desicion processes incorporate relevant ESG factors in the fundamental analysis of prospective investments, both external and internal. Each portfolio manager is responsible for his/her own process which is aligned with the overall ESG philosophy and policy we publish on our website. We conduct an ESG questionnaire as part of our selection DD process as well as repeat this questionnaire for all managers periodically. Based on the answers and results we conduct ongoing discussions with our asset managers. We classify the managers we are appointing in terms of their ESG ranking and if needed engage to make their ESG work more robust.