esg screening of fund managers date: 10 th september 2013 presented by: kelly christodoulou esg...
TRANSCRIPT
ESG Screening of Fund Managers
Date: 10th September 2013
Presented by: Kelly Christodoulou ESG Manager, Investments
Important information
This material is of a general nature and does not take into account your personal objectives, situation or needs. Before making a decision about AustralianSuper, consider your financial requirements and read our Product Disclosure Statements, available at www.australiansuper.com/adviserresources or by calling the Adviser Services team on 1300 362 453.
Industry Super Fund logo used with permission of Industry Fund Services (IFS).
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What am I going to talk about?
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>About AustralianSuper
>Investments & Active Investor Strategy
>Manager Selection Process
>Topics in RFP
>ESG in RFP
About AustralianSuper
Members
2.1
Million
Funds under
management
$65
Billion
Employers
190,000
Purpose: To help members achieve their best possible retirement outcome.
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AustralianSuper - Investments
Asset class %
Equities - Australian 29
Equities - International 23
Bonds 13
Direct Property 12
Infrastructure 14
Private equity 4
Cash 5
6
Manager Selection Process
1. Generate long list – A manager brief
2. Short list – Undertake initial analysis - score and rank long-listed managers
3. Evaluate & Rank – Send RFP – Proprietary manager-selection scorecard: (i) How do they make money? (ii) Can we trust them? (iii) Is it the right time to invest with them?
4. Approve – Hire
5. Monitor – Review the manager rating scorecard
Topics in RFP
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Order Topic No of Questions
1 Organisation 23
2 Staff 14
3 Compliance 14
4 Investment Strategya) Philosophy / Processb) Executionc) ESG
185
14
5 Performance 9
6 Customer Service & Administration 9
7 Fees & Terms 4
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ESG Questions
Environmental, Social and Governance (ESG) Integration 1) Do you integrate environmental, social and governance (ESG) issues into your
investment process? (Yes/No)
1) If Yes – Explain how you integrate it into your process and valuations of companies. Please also submit a copy of your ESG investment policies you have and explain how you adhere to your policies
2) If No - please outline why not?
2) What is your Mercer ESG score? Please provide any relevant comments.
Proxy Voting
3) Please submit a copy of your Proxy Voting Policy.
4) How is your proxy voting implemented? Do you use a proxy voting service?
5) Over the last 12 months, how often have you voted “Against” or “Abstain” on Company/Management resolutions? How did you communicate this to the company?
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ESG Questions
Engagement 1) Do you engage on ESG issues with your portfolio companies? 2) Over the last 12 months, please outline any major ESG issues you have engaged a
company on and any outcomes?3) How do you monitor and measure your engagement activities?
Research4) Do you conduct any in-house ESG research?5) What ESG research and/or database do you subscribe to? 6) Do you pay dedicated brokerage commission for ESG research? Is ESG a factor in
selecting your Broker panel? If so, what percentage (%) does it comprise of your panel/vote?
7) How much brokerage commission have you paid for ESG research in last 12 months?
Investor Groups 8) Which investor groups are you a member of and outline where you are active in the
group.9) Are you a UNPRI signatory? (Yes/No)
If Yes – please submit your last UNPRI reportIf No – please outline why not.
