Fort Washington employs integration for its Focused, Large Cap Focused, Small Company, International, Midstream and Enhanced Dividend Equity strategies, which represents the majority of the firm's third party equity assets.
With respect to those 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 write a memo explaining why the firm believes that investment is appropriate. These memos are reviewed by Portfolio Managers monthly and by the RI committee co-chairs quarterly. A summary is produced by the co-chairs and delivered in the quarterly RI and Risk Management Committee meetings.
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 expand, we will evaluate additional screening, thematic and integration incorporation.