Fort Washington employs integration without limited our ability to invest for its High Yield and Investment Grade Fixed Income strategies, which represents the majority of the firm's third party fixed income assets.
With respect to those two strategies, MSCI research is used to determine the security and strategy level ESG rating. Ratings and credit research are used throughout the selection and monitoring process. In the event of a CCC rating, the covering analyst is required to write a memo explaining why the firm believes that investment is appropriate. These memos are reviewed by Portfolio Managers, the Responsibility Committee and the committee co-chairs.
While Fort Washington has been managing client assets with SRI overlays for over 20 years, 2017 was the first annual period with specific ESG policies and procedures based on UNPRI guidelines. As our ESG capabilities continue to grow, we will evaluate additional screening, thematic and integration incorporation.