Fort Washington has three business lines which have different security/manager selection processes. They are described below:
Institutional & Private Client Group: Fort Washington's Due Diligence Committee selects and monitors all mutual fund investments. This group is comprised of senior leadership and asset class experts that examine data, interview portfolio managers, and manage selection criteria. These interviews include wide ranging discussions on how the strategy measures and incorporates responsible investing into their approach.
Private Equity: Effective in 2017, Fort Washington Capital Partners integrates ESG questions as part of the due diligence process when selecting new funds. Specific questions are as follows:
- Does your firm have an ESG policy (or equivalent CSR/SRI policy)? If so, what is your ESG-related policy?
- Is your firm a signatory to the United Nations Principles for Responsible Investing (UNPRI)?
- How do you identify and manage material ESG-related risks? Do ESG factors influence your investment decisions?
- How do you contribute to portfolio companies’ management of ESG-related risks and opportunities?
These questions are typically delivered in the form of a written questionnaire but are also discussed as part of due diligence calls or in-person meetings.
In addition, starting in 2019, Fort Washington Capital Partners conducts an ESG survey of its existing managers as part of ongoing monitoring. The survey consists of questions at the General Partner level and at portfolio company level. GP-level questions address team diversity and professional development, community engagement, and environmental thoughtfulness. Portfolio company questions are divided into several sections, including:
- Human Resources, Health and Safety
- Governance, Diversity and Inclusion
- Community Impact
- Environmental considerations, impact, and measures to reduce footprint