Selection and monitoring of asset managers
The selection of asset managers is a critical phase in terms of responsible investment activities. ESG issues and related requirements should be thoroughly assessed when selecting a cooperative partner.
The Pension Fund encloses its guidelines for responsible investing in all requests for tenders, so that asset managers participating in the bidding are aware of the Pension Fund's expectations in relation to the offered investment strategy. The Pension Fund strives to assess the asset manager’s responsible investment philosophy and whether or not the product being offered can be approved as part of the Pension Fund's investment portfolio.
Asset managers do not need to have all the processes related to responsible investing in use at the start of the co-operation, but rather, the Pension Fund can also work on initiating such practices together with the asset manager. The asset manager’s commitment to the PRI provides a good foundation.
The Pension Fund assesses and monitors the following aspects of the asset manager’s responsible investing capacity:
The Pension Fund opens up the content of its equity and fixed-income investments biannually for responsibility screening. Hence, the holdings of the mutual funds should be available when necessary. The Pension Fund also expects active communication from all the asset managers if, for example, it is discovered that the investment portfolio contains investment objects that operate in conflict with the investment principles of the Pension Fund.
The Pension Fund monitors the development of the responsible investment activities of its investment funds, in all asset classes, with the help of an annual ESG survey. The Pension Fund shares the survey results with its asset managers and discusses the development targets related to their responsible investment activities, if necessary.