All Technical guide articles – Page 2

  • HF-guide-hero
    Technical guide

    ESG incorporation in hedge funds p2/4

    2020-05-13T07:22:00Z

    Highlight box CSS Menu styles Menu Background This section provides an overview of responsible investment and its application to the hedge fund industry. It also outlines three key drivers (regulation, materiality and client demand) and the relevance to hedge fund managers and those allocating ...

  • LP-PE-hero
  • LP-PE-hero
    Technical guide

    Guide for limited partners: responsible investment in private equity

    2020-04-16T08:08:00Z

    The appetite for ESG integration in private equity has grown strongly since the 2nd edition of this guide in 2011.

  • LP-PE-hero
  • Private equity TCFD
    Technical guide

    TCFD for private equity general partners

    2020-03-11T13:43:00Z

    Implementing the TCFD recommendations Private equity GPs need a robust framework to assess climate-related risk and to help guide them through the transition. This guide sets out the actions that private equity general partners (GPs) can take to address the four-pillar framework of the recommendations proposed by the Task Force ...

  • Sovereign-debt_image
    Technical guide

    A practical guide to ESG integration in sovereign debt

    2019-08-29T11:10:00Z

    Designed to help signatories integrate ESG factors into research, analysis and the construction of sovereign debt portfolios, this guide includes lists of data sources, practitioner case studies and a comparison of ESG incorporation techniques (2019).

  • Technical guide

    Consultant’s organisational approach

    2019-07-03T13:18:00Z

    The previous sections of this report have focused on the advice on ESG matters that investment consultants provide to their asset owner clients and the questions that asset owners should ask on the subject. This section focuses on the investment consultant’s own organisational approach to responsible investment. That is, ...

  • Technical guide

    Step 5 - Appointment

    2019-07-03T13:17:00Z

    Asset owners will want to formalise commitments from investment managers through contracts or side letters to existing contracts. In addition to standard commercial terms, specific provisions related to ESG objectives and reporting can be included to ensure adequate delivery of services.

  • Technical guide

    Step 4 - Screening and shortlist

    2019-07-03T13:16:00Z

    The asset owner reviews responses to the RFP to select managers that best fit the investment mandate. Specific weight should be assigned to investment beliefs and ESG skills in investment manager appointment decisions. Attention should be paid to aligning timeframes through fees and pay structures, ensuring that ESG issues are ...

  • Technical guide

    Step 3 - Requests for proposal

    2019-07-03T13:16:00Z

    The asset owner will develop the requests for proposal (RFP) document, aligned with the original mandate text. Clear descriptions of the required capabilities will help collect information to enable the asset owner to review and compare the suitability of managers.

  • Technical guide

    Step 2 - Research and long-lists

    2019-07-03T13:15:00Z

    Asset owners need to identify a pool of investment managers who meet the requirements described in the mandate. In doing so, the asset owner will review and rank the investment beliefs and capabilities of individual managers, including on aspects such as investment philosophy, investment process, risk management, governance, product range ...

  • Technical guide

    Step 1 - Mandate formation

    2019-07-03T13:15:00Z

    Asset owners should define the types of mandate that fit their requirements and ensure that those investment mandates align the investment managers’ approach with the asset owners’ investment principles and strategies. In forming mandates, the asset owner should emphasise the ESG capabilities required to successfully deliver on the mandate. ESG ...

  • Technical guide

    Step 4 - Investment policy and governance

    2019-07-03T13:14:00Z

    Asset owners need to ensure that they have the necessary resources, expertise and processes in place to implement the strategy. They will typically codify their investment strategy in relation to their investment decision-making process, asset allocation, ESG incorporation, active ownership, manager selection and monitoring criteria through an investment policy. Some ...

  • Technical guide

    Step 3 - Strategy formulation

    2019-07-03T13:14:00Z

    Asset owners need to decide how they are going to implement their investment principles in their asset allocation and risk management processes, and in their reporting.7 To do this, they need to define their ambitions (e.g. on financial return, risk appetite and ESG considerations) over an appropriate timeframe, and establish ...

  • Technical guide

    Step 2 – Investment principles and beliefs

    2019-07-03T13:13:00Z

    Asset owners need to define investment principles to set the direction for their investment policy, investment practice and organisational culture. These principles help define how the asset owner will create investment value in the context of future uncertainty, risk and opportunity. They also help asset owners make practical decisions about ...

  • AO ESG consultant_2500x1250px
    Technical guide

    Investment consultants and ESG: an asset owner guide

    2019-07-03T12:54:00Z

    Investment consultants advise on how trillions of dollars are invested worldwide, but most consultants are failing to consider the role that ESG issues play in investment performance.

  • Technical guide

    Investment strategy

    2019-07-03T11:42:00Z

    An asset owner’s overall investment process starts with crafting an investment strategy. Asset owners will aim to set out a clear and explicit investment strategy that comprehensively considers: A. the full range of short-term and long-term return factors (e.g. social, technological, economic, environmental and political/regulatory) affecting their portfolios; 5 B. ...

  • Technical guide

    Manager selection

    2019-07-03T11:40:00Z

    Manager selection is a core component of most asset owners’ investment process. Investment managers should either act in accordance with an asset owner’s investment preferences (if running a separate client account) or offer funds that can fit within the asset owner’s investment preferences, potentially in combination with others. Selections require ...

  • Technical guide

    Step 1 – Fiduciary obligations

    2019-07-03T10:39:00Z

    Asset owners and their fiduciaries need to understand and clarify the legal obligations towards their beneficiaries. These include fiduciary, ownership and other investor duties which, among other things, set out minimum standards for how ESG factors should be appropriately considered in setting an investment strategy. The asset owner should be ...

  • ESG integration in Asia Pacific
    Technical guide

    ESG integration in Asia Pacific: markets, practices and data

    2019-05-30T15:28:00Z

    Portfolio managers and analysts are increasingly incorporating environmental, social, and governance (ESG) factors in their investment analyses and processes.