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Fort Washington Investment Advisors, Inc

PRI reporting framework 2020

You are in Indirect – Manager Selection, Appointment and Monitoring » Outputs and outcomes

Outputs and outcomes

SAM 08. Percentage of externally managed assets managed by PRI signatories (Private)


SAM 09. Examples of ESG issues in selection, appointment and monitoring processes

09.1. Provide examples of how ESG issues have been addressed in the manager selection, appointment and/or monitoring process for your organisation during the reporting year.

Topic or issue
          GP alignment
        
Conducted by
Asset class
Scope and process

In evaluating an attractive structured secondary opportunity, Fort Washington determined that the General Partner (GP) would be misaligned with the new Limited Partners if it sold the majority of its stake as part of the secondary transaction. Fort Washington expressed this concern to the GP and suggested the GP re-invest the majority of its holding. The GP refused.

Outcomes

Fort Washington decided not to invest in the opportunity.

Topic or issue
          Governance
        
Conducted by
Asset class
Scope and process

In connection with the operational due diligence performed on a secondary investment opportunity during 2019, Fort Washington Capital Partners (FWCP) identified several governance-related control deficiencies of the fund manager that required remediation prior to the closing of the transaction. FWCP recommended that the fund manager develop and implement a formal cash disbursement approval policy that included additional oversight and approval by general partners as well as enhanced segregation of duties within its online banking platform. FWCP also recommended that the fund manager implement additional controls over the review of its financial statements and investor reporting by the general partners.

Outcomes

After implementation of the control enhancements, FWCP performed on-site due diligence at the fund manager to ensure the controls were properly implemented. The issues were remediated and validated before FWCP invested. In the end, better cash controls were implemented to mitigate risk.

09.2. Additional information.


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