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Portfolio Solutions Group

How We Monitor External Managers 

 

Philosophy and Policy 
The Portfolio Solutions Group at Amova Asset Management is responsible for evaluating, selecting, and monitoring external managers. We believe that environmental, social, and governance (ESG) factors are essential to long-term corporate value and sustainable economic growth. ESG integration helps us manage investment risk, enhance long-term returns, support communities, and act as responsible stewards of the environment. 

Most of our external managers have signed letters of intent affirming their commitment to ESG integration. They are expected to assess and monitor ESG-related investments. Our team conducts regular reviews to ensure ESG is embedded in their investment processes and encourages improvements where needed. ESG considerations are central to our manager selection, including assessments of their companies, personnel, research, and investment practices. 

 

ESG Oversight and Collaboration 
We operate an inter-regional ESG Working Group, led by Naoyuki Murota in Tokyo, with members from our Tokyo, Singapore, and New York offices. This group researches evolving ESG trends and updates our ESG evaluation framework to reflect industry developments. These insights inform our assessments and discussions with external managers to ensure effective ESG integration. 

 

Framework Updates 
As ESG attention grows—particularly around climate change—we recognize the urgency of transitioning to net-zero emissions. In 2024, we updated our ESG Evaluation Framework and Due Diligence Questionnaire to better assess how managers support this transition. These tools are reviewed regularly to enhance our evaluation process. 

 

Engagement and Voting 
Engagement and proxy voting are key to fulfilling our stewardship responsibilities. For discretionary mandates, we retain voting rights and follow Amova AM’s proxy voting policy. We consider recommendations from Institutional Shareholder Services and scrutinize proposals on executive pay, board composition, and director reappointments. 

 

Improving ESG Integration 
While we aim for high ESG standards, integration levels vary among managers. Where gaps exist, we encourage improvement. For instance, one manager investing in small-cap stocks lacked sufficient ESG data. Through our guidance, they developed an ESG checklist and later enhanced it into a five-level rating system, improving their stock selection process. 

Some managers are now explicitly embedding ESG into their investment models, including climate risk assessments. Others are developing proprietary tools to deepen ESG integration. While progress is evident, we remain committed to ensuring ESG becomes a consistent and effective part of all external managers’ investment strategies. 

Important Information

The information on this website is for informational purposes only and is not intended to be an offer, or a solicitation of an offer, to buy or sell any product or service to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the laws of such jurisdiction.

Moreover, the information in this website will not affect Amova Asset Management America, Inc.’s (“Amova AM”) investment strategy in any way. The information and opinions in this website have been derived from or reached from sources believed in good faith to be reliable but have not been independently verified. Amova AM makes no guarantee, representation or warranty, express or implied, and accepts no responsibility or liability for the accuracy or completeness of this document. No reliance should be placed on any assumptions, forecasts, projections, estimates or prospects contained within this document. This website should not be regarded by recipients as a substitute for the exercise of their own judgment. Opinions stated on this website may change without notice.

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Additional information can be found under the Disclaimers [https:us.amova-am.com/institutional/legal-privacy-policy/disclaimer] section of this website.

US
This website is for information purposes only and is not intended to be an offer, or a solicitation of an offer, to buy or sell any investments or participate in any trading strategy. An offering of any investments, securities or investment advisory services with respect to securities may only be made by receipt of relevant and complete offering documentation and agreements, as applicable. Any offering or distribution of a Fund in the United States may only be conducted via a licensed and registered broker-dealer or a duly qualified entity. Amova Asset Management Americas, Inc. is a United States Registered Investment Adviser. 

Canada
The information on this website should not be considered a solicitation to buy or an offer to sell a security in Canada. The information provided herein does not constitute any form of financial opinion or investment advice on the part of Amova AM and it should not be relied on as such. It does not constitute a prospectus, offering memorandum or private placement memorandum in Canada, and may not be used in making any investment decision. Additional information can be found under the Disclaimers section of this website.