According to the Brunel Asset Management Accord, which of the following is least likely a cause for concern when conducting an annual performance evaluation of a manager against a long-term ESG investment mandate?
A.
A change in investment style
B.
Underperformance relative to the market benchmark
C.
The turnover in the portfolio outside the expected turnover range
Achange in investment style (A) is least concerningif the manager remainsaligned with the long-term ESG mandate. In contrast:
Underperformance (B)raises questions aboutwhether ESG integration is effective.
Portfolio turnover (C) outside the expected rangecould indicatea misalignment with ESG strategy.
[References:, Brunel Pension Partnership ESG Investment Guidelines, CFA Institute ESG Manager Selection Framework, Principles for Responsible Investment (PRI) Asset Manager Accountability Report, ========, , ]
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