Public HTML RI reports - PRI reporting framework 2020

Fort Washington Investment Advisors, Inc

PRI reporting framework 2020

Basic information [OO 01 - 09] Asset class implementation gateway indicators [OO 10 - 12] Peering questions [OO LE 01 - HF 01]

Strategy and Governance

Investment policy [SG 01 - 04] Objectives and strategies [SG 05 - 06] Governance and human resources [SG 07 - 08] Promoting responsible investment [SG 09 - 11] Outsourcing to fiduciary managers and investment consultants [SG 12] ESG issues in asset allocation [SG 13 - 15] Asset class implementation not reported in other modules [SG 16 - 17] Innovation [SG 18] Communication [SG 19]

Indirect – Manager Selection, Appointment and Monitoring

Selection [SAM 02 - 03] Monitoring [SAM 05 - 07] Outputs and outcomes [SAM 08 - 09]

Direct - Listed Equity Incorporation

ESG incorporation in actively managed listed equities [LEI 01 - 10] (C) Implementation: Integration of ESG factors [LEI 08 - 10] Outputs and outcomes [LEI 12 - 13]

Direct - Listed Equity Active Ownership

Overview [LEA 01] Engagement [LEA 02 - 08] Outputs and outcomes [LEA 09 - 11]

Direct - Fixed Income

ESG incorporation in actively managed fixed income [FI 01 - 12] Implementation processes [FI 01 - 03] (C) Implementation: Integration [FI 10 - 12] Outputs and outcomes [FI 17 - 18]

Confidence building measures

Confidence building measures [CM1 01 - 07]

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You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes

Implementation processes

LEI 01. Percentage of each incorporation strategy

01.1. Indicate which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities; and the breakdown of your actively managed listed equities by strategy or combination of strategies.

ESG incorporation strategy (select all that apply)

Screening alone (i.e., not combined with any other strategies)

Thematic alone (i.e., not combined with any other strategies)

Integration alone (i.e., not combined with any other strategies)

Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%

70 %

Screening and integration strategies

Thematic and integration strategies

Screening and thematic strategies

All three strategies combined

We do not apply incorporation strategies

Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%

30 %

Total actively managed listed equities 125%

01.2. Describe your organisation’s approach to ESG incorporation and the reasons for choosing the particular strategy/strategies.

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.

01.3. If assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]

LEI 02. Type of ESG information used in investment decision (Private)

LEI 03. Information from engagement and/or voting used in investment decision-making (Private)

(A) Implementation: Screening

LEI 04. Types of screening applied (Not Applicable)

LEI 05. Processes to ensure screening is based on robust analysis (Not Applicable)

LEI 06. Processes to ensure fund criteria are not breached (Not Applicable)

(B) Implementation: Thematic

LEI 07. Types of sustainability thematic funds/mandates (Not Applicable)

(C) Implementation: Integration of ESG factors

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate the proportion of actively managed listed equity portfolios where E, S and G factors are systematically researched as part of your investment analysis.

ESG issues	Proportion impacted by analysis
Environmental	Environmental <10% 10-50% 51-90% >90%
Social	Social <10% 10-50% 51-90% >90%
Corporate Governance	Corporate Governance <10% 10-50% 51-90% >90%

08.2. Additional information. [Optional]

ESG scores and research are used as supplementary tools in the research process but do not restrict the ability to invest. Portfolio and security ESG scores are monitored on a monthly basis and analysts are required to document and regularly update why a CCC rated security is an appropriate investment for the strategy.

LEI 09. Processes to ensure integration is based on robust analysis

09.1. Indicate which processes your organisation uses to ensure ESG integration is based on robust analysis.

Comprehensive ESG research is undertaken or sourced to determine companies’ activities and products

Companies are given the opportunity by you or your research provider to review ESG research on them and correct inaccuracies

Third-party ESG ratings are updated regularly

A periodic review of the internal research is carried out

Structured, regular ESG specific meetings between responsible investment staff and the fund manager or within the investments team

ESG risk profile of a portfolio against benchmark

Analysis of the impact of ESG factors on investment risk and return performance

Other; specify

          Investment team members, portfolio managers and the RI Committee co-chairs review all processes at least on an annual basis.

None of the above

09.3. Indicate how frequently third party ESG ratings that inform your ESG integration strategy are updated.

Quarterly or more frequently

Bi-Annually

Annually

Less frequently than annually

09.4. Indicate how frequently you review internal research that builds your ESG integration strategy.