For EU-domiciled investment funds, Credit Suisse Asset Management assesses whether the investments follow good governance practices according to the SFDR, which includes the evaluation of employee relations, sound management structure, tax compliance, and remuneration topics.
The methodology to assess and ensure good governance of investments includes the following:
Business-conduct Exclusions (only for actively managed investment funds): Companies that have been found to systematically violate international norms, particularly with regard to breaches of the Ten Principles of the United Nations Global Compact Principles (UNGC) may be excluded from the investment universe. Please refer to section 1.4 for further information.
Proxy voting & engagement: in markets and for investments where Credit Suisse Asset Management exercises its voting rights, Credit Suisse Asset Management votes on governance topics such as the independence of the board of directors, remuneration and board incentive systems, in line with its fiduciary duty. Credit Suisse Asset Management may discuss with investee companies shortcomings and what improvements Credit Suisse Asset Management expects, based on the Credit Suisse Asset Management proxy voting framework. Please refer to section 1.6 Principle 4: Application of Active Ownership for further information.
Governance topics may furthermore be part of ESG Integration through their inclusion in an ESG rating and the Governance Pillar score.
For investments in real estate assets, good governance cannot be assessed on the real estate asset level itself. However, during the acquisition, holding, and disposal of the asset,Credit Suisse Asset Management engages with external counterparties and/or service providers. Credit Suisse Asset Management has controls and processes in place to ensure those external counterparties and/or service providers (such as operating partners and developers) exceeding a certain order volume are subject to proper due diligence review for good governance purposes. Good Governance practice relate to companies and may not be assessed for investments in securities issued by sovereigns or supranational entities.