AMF has limited external listed equity mandates, less than 1 % of total AUM. They are part of a fund selection offering for our clients. The minimum requirement for an external fund to be included in the offer is that the fund company is a signatory of PRI. This requirement is placed on Index funds. For actively managed funds, the requirements, apart from signing the PRI, are that they have at least two globes in Morningstar's Sustainability Rating and that they perform some form of norm based screening. If / when AMF introduces funds that have a particular sustainability focus, such as a Clean Tech environment fund, for example, we require signing of PRI and 3 Sustainability globes, a clear sustainability strategy and active engagement work. The inclusion of new funds in the external fund offering follows a decision-making process that assures the above requirements and categories. In addition to these controls being carried out when new funds are taken in, sustainability requirements are checked annually (Morningstar's Sustainability Rating is checked twice a year) by AMF. These requirements including Morningstar's sustainability rating result in an annual report setting out the requirements and monitoring of the requirements. Any deviations from the requirements of AMF are shown in the annual report. In cases where the requirements are below the initial requirements, this is stated in the annual report and the fund company is contacted and informed that the fund no longer meets the initial sustainability requirements imposed by AMF and therefore risks being excluded. A decision document is made where the proposed action is described if the fund continues to fail to comply with AMF's requirements, and the fund is being taken out of the selection menu.
AMF has a handful externtal managers primarily in infrastructure as part of our asset allocation in our main portfolio. ESG considerations are incorporated in our investment and monitoring process.