Evaluation
We work with many investment and asset managers globally. These managers have the discretion to make investment decisions on our behalf, guided by an Investment Management Agreement with the Guardians or the terms of the collective investment vehicle we invest in.
Evaluation criteria
We evaluate external investment managers through two main criteria:
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Conviction: Our confidence in the manager's ability to execute the investment opportunity and the overall quality and fit of the organisation.
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Operational due diligence: The manager's regulatory, operational, organisational, and financial processes and procedures.
Separate teams with different reporting lines conduct each evaluation. If a manager does not pass the Operational Due Diligence review, we do not invest. If operational concerns arise after investment, we address them immediately, including termination if necessary.
The conviction process
Our conviction framework is a structured way of assessing our managers’ abilities to successfully execute an investment opportunity on our behalf and the alignment of their organisations with ours. We complete a conviction review at inception for all externally managed investments, and an up-to-date conviction score remains in place for as long as we hold the investment. Conviction reviews are conducted at least annually.
Ongoing engagement
We continuously engage with both current and potential managers about various investment opportunities. These relationships not only generate new investments but also provide us with valuable insights across a range of investment and operational topics.
Relationship management
Trust and transparency is key. We value investment partnerships and aim to build respectful relationships with our global managers and partners. We aim to build deeper relationships with managers who provide strategic, long-term value to the Fund. Expanding our network enhances our market knowledge and helps us implement best practice portfolio management.