As part of our due diligence process for active equity funds, fixed income funds, private credit funds, commodity funds and hedge funds, we use a dedicated RI DDQ to assess managers' incorporation of ESG factors and to gain a greater understanding of their attitude to responsible investment and engagement. Information gleaned from here, alongside information gathered through engagement with the management company and from our operational due diligence process, is incorporated into our final information pack on funds and helps to inform selection and appointment. As part of ongoing monitoring, we consider our funds formally on a quarterly basis including any changes to their responsible investment approach and outcomes reporting.
As part of our due diligence process for private equity funds and real estate funds, we consider managers' approach to responsible investment as part of our selection process. Depending on the strategy itself, these factors may be more or less relevant in terms of our manager appointment, but we have a strong preference for managers who consider environmental, social and governance factors as part of their investment process. As part of our ongoing monitoring, we consider any changes in our managers' approach to responsible investing and review any related output.