Selecting, appointing and monitoring managers

ESG factors are an important dimension of investment expectations and should be considered a part of an asset owner's overall expectations for their fund's financial performance.

Using PRI ESG firm data from the Data Portal

Enhancing manager selection with ESG insight

selection guide

Asset owner guide: Enhancing manager selection with ESG insight

Asset owners, sitting atop the investment chain with long-term investment horizons, are ideally placed to drive responsible investment throughout the investment cycle.

Matrix analysis of the management dimension

Gaining a high-level view of prospective management firms

This chapter focuses on an investment manager’s culture, investment approach and objectives, investment policy, time horizon, asset classes and governance.

real world impact

Portfolio construction and investment decision making in manager selection

This chapter focuses on ESG in investment decision making and portfolio construction, as well as on the risk and return framework.

voting chain

Assessing active ownership through engagement and voting in manager selection

This chapter looks at how asset owners can be effective stewards of their assets and, if such functions are outsourced, determine how an investment manager deals with stewardship and active ownership issues.

Assessing reporting capabilities in manager selection

The selection process should consider the ongoing reporting from the manager to the asset owner and satisfy the latter’s internal investment-related information requirements, as well as be able to accomodate their own reporting to stakeholders.

generic selection model

Practical tips for making selection decisions in manager selection

This final chapter offers practical ideas for bringing ESG matters raised during the manager selection process together in order to facilitate ultimate decision making.

Selection, appointment and monitoring in listed equity

Considering ESG integration in manager selection

Selecting an investment manager that can act in accordance with an asset owner’s investment preferences requires thorough due diligence of the manager’s investment approach and performance, investment process, stock selection and portfolio construction decisions.

Monitoring managers' ESG integration

To review investment performance and managers’ integration practices, asset owners: organise periodic monitoring meetings with investment managers; ask them to complete questionnaires/regularly report; and/or use methods such as peer analysis, internal scoring systems and portfolio analytic tools.

Selection, appointment and monitoring in private equity

LP responsible investment DDQ: and how to use it

LP responsible investment DDQ: and how to use it

The LP responsible investment due diligence questionnaire (DDQ) is a tool to establish dialogue between LPs and GPs.

Incorporating responsible investment requirements into private equity fund terms

Incorporating responsible investment requirements into private equity fund terms

How to identify options for incorporating responsible investment considerations into fund terms when committing to a private equity fund.

ESG monitoring, reporting and dialogue in private equity

ESG monitoring, reporting and dialogue in private equity

An exchange of information, underpinned by dialogue, will keep LPs informed about the ESG characteristics of their private equity investments and the responsible investment practices of their investment managers.