1. Assets under Advisory
Regarding Assets under Advisory, the due diligence questionnaires include since April 2017 a list of questions regarding ESG issues.
2. External Fund managers
2.1 Selection, appointment and monitoring processes
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
2.2 Investment processes
Application of Exclusion lists
Since 2013 Lyxor has a managed account and UCITS platform, Lyxor has implemented this exclusion list as a filter of its managed account platform to the managers that have accepted to comply with it.
Lyxor applies an exclusion list including companies involved in controversial weapons such as cluster-munitions, anti-personnel mines and depleted uranium weapons.
in addition for dedicated funds, exclusions related to UN GLobal compact & international norms, Thermal Coal and controversal weapons are applied.
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.