Selecting, appointing and monitoring managers

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.

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.

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.

Aligning expectations cover

Aligning expectations: Guidance for asset owners on incorporating ESG factors into manager selection, appointment and monitoring

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.

Assessing external managers' approach to ESG integration

To integrate ESG considerations into their externally managed assets, asset owners (or their investment consultants) will assess external managers’ integration practices.

Selecting managers...

Incorporating ESG factors into manager selection

Asset owners should decide which requirements/questions should be included in RFPs and what information should be requested in questionnaires and during meetings with candidate managers. 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. 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. hedge funds

Hedge fund DDQ development process

Responsible investment DDQ for hedge funds

The first industry-standard tool for investors to assess external hedge fund managers on their responsible investment policies and practices.

Appointing managers...

Incorporating ESG factors into manager appointment

After a manager is selected, an asset owner may negotiate and agree on a number of ESG-related terms and conditions. private equity

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.

Monitoring managers...

Incorporating ESG factors into manager monitoring

Asset owners may develop an evaluation framework to assess the extent to which their appointed manager is fulfilling their ESG-related expectations. listed equity

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. private equity

Post-investment stage guidance for limited partners

Post-investment, an LP should focus on monitoring how a GP integrates ESG issues into its investment decisions and ownership activities, and engaging with a GP on specific areas for improvement or concern.