Lyxor has developed a capacity to evaluate extra-financial valuation of external management companies, including a review of the following points :
- Their ESG analysis capacity
- The investment process / ESG integration in their management
- Their voting and engagement policies
This allows us to establish a rating of the external management companies:
- A basic scoring is first established from the UN PRI scores.
- On the basis of LYXOR's questionnaires, we can adjust this score downwards if we consider that it is not sufficiently representative of real capacities.
This approach provides a general overview of the level of ESG integration and compares external management companies
In the context of the relationship between Lyxor and its trading advisors (of the managed accounts) to which we have delegated the management of the fund, we have regular discussions with asset managers to try to convince them to comply with this exclusion list.
Regarding the respect of exclusion lists: Independent controls are performed within LYXOR Risk Team on NAV frequency basis.