As we are an investment manager ourselves, we have a very small allocation to external managers (<10% AUM). All of our external managers are PRI Signatories and consistent with PRI Principle 1 they incorporate ESG issues into investment analysis and decision-making processes.
Responsible investment considerations are included in Pendal's investment manager selection, appointment and monitoring as outlined in our "Investment Manager Due Diligence Guidelines". Investment due diligence oversight is done by the Investment Boutique and operational due diligence oversight is done by Investment Operations, although both are conducted in consultation with area experts, such as Risk and Compliance, Responsible Investments, Operations and IT.
We seek demonstration of responsible investment practices, including ongoing improvements, through our monitoring processes - including related policies and resources, ESG integration processes and including case study disclosures, climate-related risk management processes, active ownership practices (direct and collaborative engagements and proxy voting practices) and any impact related initiatives (either through supporting the SDGs or providing impact investment solutions directly).