When Trecento AM carries out an external manager selection process, the screening process includes a key criteria: whether the external asset manager incorporates an ESG ou SRI approach in its investment strategy. If the external manager does not, it is excluded from the list of potential external asset managers.
We then analyse how the responsible investment considerations are implemented by each asset manager to ensure that they are incorporated in each step of the investment cycle: screening, selection and monitoring of investments, engagement with issuers and voting practices. This process is done by both reviewing public documents of the asset manager and the targeted funds as well as engaging with the management teams to better understand their process and ask specific questions. We analyse exclusion policies, ESG integration policies, engagement and vote policies, transparency codes and all other documents that can help us understand, categorise and rank the SRI policy of the external asset manager.
On an ongoing basis, we then monitor the ESG/SRI performance of the external asset managers' funds that we have invested in, by reviewing their periodic reportings and engaging in-person with their management teams and especially the ESG/SRI analysts.