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Prometeia Advisor Sim

Service Providers Framework 2019

You are in Investment Consultancy » Manager selection and monitoring

Manager selection and monitoring

IC 12. ESG in manager selection, appointment and monitoring

12.1. Indicate whether you incorporate ESG factors into your manager selection and monitoring services.

Manager selection service

Manager monitoring service

12.3. Additional information. [OPTIONAL]

We incorporate ESG factors whenever clients ask for this or to assist clients toward the adoption of sustainable portfolios where the asset allocation allows it


IC 13. Manager selection activities

13.1. Indicate what activities you undertake during the process of selecting a manager.

Research and screening


ESG people/oversight

Process/portfolio construction

Selection process and reviewing documentation

13.2. Indicate whether you use any of the following scores or targets in your manager selection process.

          We not only consider ESG score of portfolios, we extent our evaluation to the asset management company, portfolios management team and to the strategy.

13.3. Additional information. [OPTIONAL]

IC 14. Incorporating asset owners’ investment principles in selection of manager

14.1. Describe how you incorporate asset owners' investment principles into the manager selection process.

          Our goal is to successfully satisfy client demand. We achieve so by talking to clients and understanding their unique investment perspective. We are proud of the highly personalized solutions that we are able to offer to clients after engaging with them and understanding their needs. We provide investment solutions in accordance with their goals. Sustainable investment has allowed us in recent years to better align clients' mission and investment objective.

14.2. Additional information. [OPTIONAL]

Our approach in summary:

- understand clients' needs

- analyze current portfolio

- develop tailor-made solutions in accordance with clients goals

- asset allocation (strategical and tactical) and often integrated with Asset & Liability Management approach

- ongoing performance monitoring and result measurement


IC 15. ESG in selection due diligence

15.1. Briefly describe how you include ESG factors in your due diligence process for manager selection.

          In case of ESG mandate, in according with the client we ask some ESG questions in the Request for Proposal (RFP). To these answers we attribute a shared weight with the client in the overall evaluation framework.
For the funds, sicav and Etf we developed a proprietary methodology to assess the sustainability of asset managers and fund's strategies, which is periodically under review to better capture all the market evolution trends. The outcome of the assessment is an overall score that combines different score as in our process we include multiple sustainable aspects as explained below.

15.2. Additional information. [OPTIONAL]

We have developed a proprietary methodology to assess the sustainability of asset manager and investment instruments.

Our goal is to understand which investment is really making a difference in term of sustainable innovation that have a clear impact on investment performance. 

The outcome is an integrated financial and sustainable assessment of the investment.

In our process, we consider different aspects: 

- asset manager overall sustainable development and commitment

- the complexity of the sustainability research and its integration in the investment process

- sustainable team structure and field of operation

- fund strategy' s degree of sophistication

- portfolio managers team: experience and sustainable knowledge

- risk manager integration with the portfolio managers team

- engagement activities 

- sustainable reporting

- fund external label

IC 16. Monitoring investment managers on ESG

16.1. Indicate whether you set any of the following to measure compliance/progress, or use the following information to review and evaluate the investment manager.

Setting measures for the investment manager as part of the monitoring process

          analysis of the reports

Reviewing and evaluating information from the investment manager as part of the monitoring process

16.2. Describe how you raise and manage concerns when monitoring investment managers on ESG factors.

          We have seen a growing number of asset managers providing reports on their sustainability effort, either at company or portfolio level.

We believe this trend is due to the fact that institutional investors and consulting firms have increasingly raised concerns about transparency and want to connect the puzzle of the added value of a sustainable strategy on the ‘profitability’ of the results.

From our experience, asset managers are more willing to spend time and effort on sustainable reporting if it increases their chance of raising AuM. At the same time, investors are more willing to trust a sustainable strategy if this strategy can somehow be verified quantitatively and qualitatively thanks to reporting.. 

It is a positive enforcing loop where we, as a consulting firm, take an active participation by asking for more and more reporting and transparency to asset managers in order to evaluate and verify their data.

16.3. Additional information. [OPTIONAL]

IC 17. Reporting back to asset owners

17.1. Indicate whether you report back to asset owners on your manager selection and/or monitoring activities.

17.2. If yes, describe how you report back and the frequency.

          We always report our assessment both to asset managers and to asset owners. We sent a formal evaluation right after we have concluded our analysis.

17.4. Additional information. [OPTIONAL]

IC 18. Demonstrating value on manager selection, appointment and monitoring

18.1. Describe how you measure, track or otherwise demonstrate your value on manager selection and monitoring services.

          Specifically to managers selection and monitoring, we believe there is a strong connection between asset managers' selection and investment return. If the selection is good it leads to positive investment return and to a constructive relationship. 

Through our selection and monitoring process we are able to evaluate the performance of the asset manager over time. 
In case of asset management mandate, we monitoring the performance since inception and the risk of the portfolio with a lot of typical indicators of financial evaluation.
In case of funds/sicav, with our proprietary methodology we monitor every month the results and the positioning with respect to competitors, in term of performance, risk and many other indicators.
But it is thanks to a solid relationship that we can constantly interface with asset managers, share visions and act in the interest of our clients.

18.2. Additional information. [OPTIONAL]

IC 19. ESG in manager selection, appointment and monitoring (Private)