We do not use mainstream consultants or fiduciary managers to support us in the selection and/or monitoring of external managers.
For Private Equity investments, in addition to our direct selection of external managers we have also used a fund-of-funds asset manager Alpinvest, which used to be co-owned by APG. Alpinvest is a signatory of the UN PRI and its responsible investment approach is described on its website: http://alpinvest.com/responsible-investment. Alpinvest is a discretionary asset manager and while it makes investment decisions on our behalf and performs a separate ESG analysis, it is obliged to adhere to APG's Responsible Investment Policy, as well as report on its ESG activities on a quarterly basis.
For Hedge Fund investments we use an external advisor New Holland Capital, based in New York, who provides investment advice which includes the consideration of ESG factors. Investment decisions in the hedge fund portfolio are made by APG.
For new external mandates for Listed Equities and Fixed Income Credits we perform an analysis of the responsible investment policies and they need to, at minimum, fully implement our exclusion policy and allow APG to vote on all positions and commit to our carbon reduction target for Listed Equity. In addition we would stimulate external managers to continuously improve their Responsible Investment practices and have developed a methodology to monitor progress on an annual basis for all external managers.