Selecting and appointing active managers 

We choose to invest through third parties only when it is the most effective and efficient way to access an investment. These external managers must meet rigorous due diligence requirements. 

When appointing active managers, we seek those who operate in environments where generating active returns (returns above the passive alternative, after costs) is feasible.  

Before appointing an investment manager, we focus on thoroughly understanding and gaining confidence in the underlying investment opportunity and its drivers. When we determine that an external manager is the best way to access an opportunity, we conduct a formal selection process to find the best manager globally.  

We evaluate potential managers based on their fit with the specific investment opportunity, strategy, organisational capabilities, alignment with our long-term objectives, commitment to sustainable investment, and investment style.