Responsible investment is a component of the investment manager selection and appointment process. The Fund prefers investment managers that have sound ESG practices or are actively developing their approach, which allows the Fund to accommodate managers at different stages in their responsible investment journey.
Investment managers are only appointed after a selection process in accordance with the Fund’s Due Diligence Policy and, where appropriate, its Outsourcing Policy. Investment Management Agreements (IMAs) detail the specific requirements for responsible investment, including reporting and monitoring requirements, and are based on the type of asset class and investment strategy being employed. Our due diligence questionnaire includes questions regarding climate change, gender diversity and modern slavery. Our asset consultant also provides a fund manager rating during the selection process.
Some investments can only be accommodated in pooled arrangements. Where possible, the Fund uses its influence to ensure the terms of the pooled vehicles are aligned to its needs and will seek to incorporate the Fund’s approach to responsible investment in the governing documents.
After an investment manager has been selected, the Fund actively engages with the manager and monitors the integration of responsible investment into their processes. We will follow up with fund managers regarding specific ESG issues, assets or companies e.g. infrastructure managers are required to report on any fatalities.