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Displaying 364 options from Fund EcoMarket
Print Fund Name SRI Style Product Region Asset Type Launch Date More info
Scot Wid Ethical Pn S2 Negative Ethical Pension UK Equity 24/10/2004 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Scot Wid Ethical" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing.  

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Royal London Sustainable Diversified Sustainability Themed Life Global Mixed Asset 26/07/2009
L&G F&C Responsible Global Equity Pn 3 Ethically Balanced Pension Global Equity 01/11/2011
OMW Jupiter Ecology Pn Environmentally Themed Pension Global Equity 23/02/2007 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Jupiter Ecology" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing.

SRI Policies (Primary strategy in bold)

  • Invests in clean energy/renewables This fund invests in companies in the clean technology/renewable energy related industries. Fund strategies vary. In practice some may invest a small percentage in this area whereas others may have significant exposure to this area. Check fund literature for details.

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Fl Threadneedle UK Social Bond PN Social Themed Pension UK Fixed Interest 01/10/2014
BlackRock Aquila Life Over 5 Year Index Linked Pn Nav Unclassified Pension UK Fixed Interest 31/08/1996
Standard Life Investments Responsible Ownership Corporate Activity Not Set Unclassified 29/01/2016 More Info (click to view)

SRI / Ethical Overview

At Standard Life Investments, our approach to responsible ownership is materiality focused, identifying the key issues affecting performance. We aim to be the industry leader in ESG, contributing to a sustainable world and a better financial future for our customers. Our approach centres on protecting and enhancing the investments held on behalf of our clients and includes the following:

•    Materiality-driven analysis: Our dedicated Responsible Investment and Governance & Stewardship Teams provide robust analysis of the themes and trends that have the potential to impact financial performance. 
•    Sustainability ratings: We identify companies at the forefront of their industries (leaders) and those that are behind the market (laggards) in their management of sustainability issues.
•    Systematic engagement: The active engagement with companies undertaken by our teams highlights risks and opportunities, and encourages greater transparency and accountability. 
•    Active voting process: We vote all shares for which we have voting authority except when otherwise instructed by the beneficial owner of these shares or, where, for practical reasons (such as share-blocking), this is not appropriate. 

As of 30 September 2015, Standard Life Investments had £250.6 billion of assets under management. Our approach applies across the firm to varying extents as appropriate, based on the particular asset class. Within equity, fixed income and real estate, we had £141.1 billion assets under management. In addition to integrating ESG matters into our investment process, our in-depth analysis can also be applied across a range of dedicated responsible investment styles, including ethical products, sustainable & responsible investment (SRI) and impact investing solutions.

Our responsible ownership strategies apply to equity and fixed interest assets in all geographic regions.

SRI Policies (Primary strategy in bold)

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SRI Features

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Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Responsible Ownership policy for non SRI funds This fund manager applies Responsible Ownership or 'Stewardship' policies to all or most of their investment assets. This means that active involvement (e.g. voting, dialogue) with the companies they invest in is not limited to ethical or SRI options.
  • Integrates ESG factors into all/most fund research This fund manager researches environmental, social and governance issues when deciding whether or not to invest in a company. This applies to all funds, not only those which are promoted as being 'ethical' or 'SRI themed'.
  • Vote all shares at AGMs/EGMs This fund manager always votes the shares they own at annual general meetings (and extraordinary general meetings). This is a key indicator of 'responsible share ownership' and companies taking an interest in the future of the companies they part own.
  • In house responsible ownership/voting expertise Fund managers have in-house expertise that enables them to have in-house voting guidelines, review their own shareholder voting decisions, for example.
  • Responsible Ownership/ESG a key differentiator The fund managers have said they consider this area to be a key differentiator for their business
  • UK Stewardship Code signatory
  • Publish Responsible Ownership/Stewardship report Fund manager publishes information that sets out their approach to responsible investment ownership - also known as 'Stewardship' following the introduction of 'the Stewardship Code'. This sets out their approach to voting, dialogue with company management and any related activity. This is publicly available.
  • Publish full voting record Fund manager publishes a full record of how they vote at AGMs and EGMs. This information is publicly available.
  • Review(ing) carbon/fossil fuel exposure for all funds This company has reviewed or is currently reviewing (or in other ways 'actively managing') their exposure to carbon intensive industries including (but not only) mining, oil and gas companies. This work is being carried out in the light of climate change related concerns and the company's view of its anticipated impact on the companies they invest in.
  • Regularly lead collaborative ESG initiatives This fund manager has told us they regularly initiate or help lead industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.

SRI / Ethical Policy

In-Depth Research and Engagement
At Standard Life Investments, we pride ourselves on our in-depth analysis to ensure we fully understand our investments. Our multi-layered process consists of two complementary disciplines: in-depth research and company engagement. These activities are conducted in conjunction with our investment desks across Standard Life Investments and ultimately feed into our investment process. 

We analyse ESG themes and trends on a global scale, which also includes a focus on a region or a sector particularly impacted. Using macroeconomic analysis of megatrends, as well as existing and future regulation and sector and company-specific risks, we determine the themes that are of greatest significance for our investments. We then use our ongoing engagement programme to encourage companies to change their behaviour where required and help them meet the high standards that we set. 

Our ESG-focused teams undertake a systematic programme of engagement with companies in which we are or may become a shareholder. In 2015, Standard Life Investments conducted over 600 direct engagements with companies on ESG issues, including more than 100 direct engagement meetings conducted by the Responsible Investment Team on environmental, social or business ethics issues. Meeting directly with companies enables us to learn more about a company’s sustainability strategy and performance, appraise company management, encourage best practice on ESG issues and/or exchange views. Our approach is materiality focused, identifying the key issues affecting performance. Our engagement activities are prioritised by targeting six areas: 

Materiality Targets
1. Financial exposure – our top holdings by financial value (both equity and debt) and geography
2. Weight of influence – where we hold a sizable portion of shares outstanding 
3. Client-driven – based on specific requirements and concerns

Value-driven Targets
4. Thematic engagement – engaging with companies exposed to recent trends
5. Poor performers – those in breach of international standard and conventions
6. Event-driven engagement – based on environmental or social events

In our ESG analysis, we assess the extent to which the financial value of an investment is impacted by ESG issues by considering their exposure to the relevant issue as well as their management of this exposure. Based on research and engagement with companies, the Responsible Investment Team scores companies on their policies, management systems, performance and reporting. These ratings benchmark companies against others in their sector using a proprietary, in-house assessment tool and are incorporated into our internal research platforms, together with detailed meeting notes and thematic research. In addition, if the Governance & Stewardship Team has significant concerns about a company, it initiates a health warning on that stock.  

Further information on our engagement approach can be seen on our website at http://www.standardlifeinvestments.com/governance_and_stewardship/what_is_corporate_governance/engagement.html and http://www.standardlifeinvestments.com/sustainable_and_responsible_investing/engagement.htm

Stewardship
Standard Life Investments is a strong supporter of the principles of good stewardship that are set out in the Stewardship Code published by the Financial Reporting Council in July 2010, and updated in September 2012. We believe that it is mutually beneficial for companies and long-term investors such as Standard Life Investments to have a relationship based on accountability, engagement and trust. Such a relationship helps to ensure that each has a good understanding of the other's views and expectations and it enables us to exercise constructive influence as and when appropriate. We believe that this serves to enhance the long-term value of our clients' investments and to protect their interests when necessary.

Likewise, it is very important that we are accountable to our clients for our stewardship of their assets. Accordingly, we seek to have a transparent and open dialogue with them about how we engage with the companies in their portfolios. Their feedback helps to shape our views and approach.  Our Responsible Investment Team publishes quarterly updates on our website, outlining emerging themes and topics and detailing the engagements undertaken, and our Governance & Stewardship Team produces an annual review outlining their activity. We also provide full transparency of our voting activity on our website. These can be found at: http://www.standardlifeinvestments.com/sustainable_and_responsible_investing/documents.html and http://www.standardlifeinvestments.com/governance_and_stewardship/what_is_corporate_governance/voting_disclosure.html. Our engagement and our voting records are audited annually by PricewaterhouseCoopers LLP. This demonstrates our commitment; we are one of the few teams that apply such rigor to our transparency.

We are signatories to the Stewardship Code. We comply fully with all the Code's principles in respect of our UK equity investments. We continue to take steps to strengthen our stewardship capabilities in line with the Code in respect of our European equity investments, and we also use our best endeavours to apply the spirit of the Code's principles in respect of our other global equity investments on a case-by-case basis. Please refer to http://www.standardlifeinvestments.com/governance_and_stewardship/the_uk_stewardship_code/index.html for further details.

Active Voting Process 
Voting is the primary method by which we exercise our clients’ rights as shareholders and is the means by which boards of companies can formally be held to account. The Governance & Stewardship Team has oversight of all our voting globally. Standard Life Investments votes all shares for which we have voting authority except when otherwise instructed by the beneficial owner of these shares or, where, for practical reasons (such as share-blocking), this is not appropriate. We use our Global Voting Platform to achieve this. 

We implement considered voting policies based on the Governance & Stewardship Principles & Policy Guidelines approved by our board when voting the shares we manage. Our Regional Voting Guidelines, covering all major regions of the world where we invest on behalf of our clients, are available on our website at http://www.standardlifeinvestments.com/governance_and_stewardship/what_is_corporate_governance/principles_and_policies.html. We apply our guidelines with appropriate professional care and flexibility, holding boards to account, engaging where necessary, and at all times representing the best interest of our clients. 

Resources, Affiliations & Corporate Strategies

Dedicated Resources
Our Responsible Investment and Governance & Stewardship Teams currently comprise 12 investment professionals with an average of 19 years of experience in the industry and an average of eight years at Standard Life Investments. These teams work closely together to help understand how companies are being managed, bringing very different skills and knowledge to the process. While the latter focuses mainly on board level issues, the former assesses whether the policies put in place at the top are implemented at the operational level. This level of resource and their different access points for engagement add considerable value to the investment process.

To facilitate this process, the teams meet regularly and share information across a broad range of issues. For example, the Teams have jointly developed a policy for voting on all environmental and social resolutions lodged at company AGMs and EGMs, ensuring that the Responsible Investment Team’s in-depth knowledge and expertise on environmental and social matters is integrated into the voting process managed by the Governance & Stewardship Team. The heads of both teams also meet bi-monthly to discuss wider strategic issues.

Team biographies can be found on our website at: http://www.standardlifeinvestments.com/sustainable_and_responsible_investing/our_team.html and http://www.standardlifeinvestments.com/governance_and_stewardship/our_team/index.html 

The Responsible Investment and Governance & Stewardship Teams are active throughout Standard Life Investments, working closely across asset classes with all of our investment teams. The overall objective is to ensure every facet of ESG is integrated across our business, and our dedicated in-house resources are on-hand to provide advice and expertise to our Portfolio Managers and Analysts. Importantly, we have the buy-in from all our colleagues regarding ESG issues and the positive impacts this can have on our business as a whole, as well as on the performance of our clients’ investments. 

Internal vs External Resources
The majority of our research and analysis of responsible investment issues is conducted internally by our Governance & Stewardship and Responsible Investment Teams. Currently, our main data providers are MSCI, Sustainalytics, Bloomberg, Institutional Shareholder Services (ISS) and IVIS. Further sources of idea generation include climate indices, CDP, MSCI, ATNI and ATMI, to name just a few. Our sources are under continual review to ensure we have access to the most appropriate, up-to-date research that supports our investment approach, processes and systems.

Internal research is supplemented by the use of the third-party ESG research providers, which provide screen-out tools for our ethical and SRI funds. However, our Responsible Investment Team reviews the analysis and will upgrade/downgrade companies if our analysis of the company differs from the provider's.

Within individual portfolios, ESG risk and opportunities is considered alongside other more traditional metrics and analysis. The appointed Portfolio Manager is ultimately responsible for investment decisions within their fund.

Participation and Dialogue
Standard Life Investments is active in the public debate about stewardship and sustainability. We are a signatory to the UK Stewardship Code and were a major contributor to its formulation. We support and are a signatory to the UN-backed Principles for Responsible Investment (PRI). We formally participated in the investor-led collaborations with fellow members of the PRI on anti-corruption strategies and water risks in the agricultural supply chain, and are currently members of three PRI Steering Committees:

  • Human Rights in Extractive Industry, which focuses on collaborative engagement with extractive companies facing human rights risks
  • Employee Relations, whose work identified a number of labour key performance indicators linked to financial performance that now form the basis of the PRI’s collaborative engagement initiative on employee relations
  • Listed Equities, which aims to outline examples of best practices as to how ESG is integrated into the equity investment process

In addition, we are also part of Investment Leaders Group (ILG), a group of 11 leading asset managers and owners who have joined forces with the University of Cambridge in a three-year project designed to promote understanding of how investors can realise positive environmental and social outcomes alongside robust, long-term investment returns. The project is championed at the most senior levels in the member companies, including Rod Paris, Head of Investments at Standard Life Investments, with a view to integrating the research and best-practice recommendations across their businesses. The members collaborate with academics at the Cambridge Judge Business School on some of the most fundamental issues in responsible investment.

We also participate extensively in UKSIF, EUROSIF, ICGN, ECGI, Asian Corporate Governance Association, CBI Companies Committee, Conference Board, Investment Association’s Governance and Engagement Committee, Corporate Governance Forum, Global Investor Governance Network, Global Auditor Investor Dialogue, Extractive Industries Transparency Initiative and GRI. We take an active role in monitoring and seeking to influence European policy developments, visiting Brussels at least twice per year to meet with officials.

Furthermore, we are and have been involved in a number of public policy debates relating to both the role of government and business to promote Corporate Responsibility. These include:  

  • The European Commission’s consultation on human rights and information and communication technology
  • The Equator Principles draft guidance
  • The DTI Consultation Document on the Operating and Financial Review and Directors’ Report

These initiatives have provided useful opportunities to work with others to share information and collaborate on matters of common interest, and all of the insight gained is fed back to our investment teams via the ongoing communications described previously. The purpose of our participation is at all times to promote the development of an environment that enhances investment returns for our clients and derives insights for their benefit. Further details of the above and other initiatives can be found on our website at: 
http://www.standardlifeinvestments.com/governance_and_stewardship/affiliations/index.html  

FL Kames Ethical Equity EP Negative Ethical Pension UK Equity 04/11/2009 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Kames Ethical Equity" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing.

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Royal London Investment Grade Short Dated Credit Z Negative Ethical OEIC/Unit Trust UK Fixed Interest 07/12/2015 More Info (click to view)

SRI / Ethical Overview

The Fund invests predominantly in investment grade sterling bonds, of which these will be primarily short dated, which meet predefined ethical criteria. The policy of the Fund considers all of the following ethical issues: armaments and tobacco.

 

SRI / themed / ethical assets under management – overview

 

  • Fund Size (GBP):   £348.60m as of 31 May 2017.
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management:   £11,793.22m as of 31 May 2017.
  • Total value of assets covered by responsible ownership policy:   £1,416.04m as of 31 May 2017        (Please note that this figure only includes our sustainable range, however, RLAM’s Responsible Investment Policy will detail how this is an over-arching approach across most of the firm’s assets).
  • Total assets under management:    £104,507.32m as of 31 May 2017.

 

SRI Policies (Primary strategy in bold)

  • Tobacco production avoided Does not invest in manufacturers or tobacco (or related) products. The fund, however, may invest in retailers of such products (e.g. supermarkets or hotels.)
  • Armaments manufacturers avoided Avoids companies that manufacture products intended specifically for military use. (Funds may, however, invest in manufacturers of products that are used by the military but are not specifically intended for military/defence use.)
  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

  • RSMR Rated Fund rating agency 'Rayner Spencer Mills Research' have awarded this fund 'rated' status.
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Available via an ISA This fund is available via a tax efficient ISA product wrapper

Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Vote all shares at AGMs/EGMs This fund manager always votes the shares they own at annual general meetings (and extraordinary general meetings). This is a key indicator of 'responsible share ownership' and companies taking an interest in the future of the companies they part own.
  • In house responsible ownership/voting expertise Fund managers have in-house expertise that enables them to have in-house voting guidelines, review their own shareholder voting decisions, for example.
  • UK Stewardship Code signatory
  • Publish Responsible Ownership/Stewardship report Fund manager publishes information that sets out their approach to responsible investment ownership - also known as 'Stewardship' following the introduction of 'the Stewardship Code'. This sets out their approach to voting, dialogue with company management and any related activity. This is publicly available.
  • Publish full voting record Fund manager publishes a full record of how they vote at AGMs and EGMs. This information is publicly available.
  • Regularly lead collaborative ESG initiatives This fund manager has told us they regularly initiate or help lead industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
  • PRI signatory This fund management company has signed up to the UN backed 'Principles of Responsible Investment' initiative.

SRI / Ethical Policy

Our ethical investment process begins with screening for eligible investments, which is conducted by specialist independent consultancy EIRiS (Ethical Investment Research Services). With over 25 years’ experience, EIRiS is a leading provider of research into the environmental, social and governance (ESG) and ethical performance of companies. RLAM’s ethical framework combines the avoidance of companies involved in excluded activities with the identification of best of breed companies in permitted sectors.

 

Companies that generate over 10% of their turnover from either one or a combination of the following categories are excluded:

 

Armaments:        manufacturing armaments or nuclear weapons, or associated strategic products

Tobacco:             growing, processing or selling tobacco products

 

If a company breaches this threshold, then it is likely that that company’s involvement in that excluded sector is a noteworthy part of their business and strategy.

 

Also, this threshold is deemed to be realistic and appropriate in terms of assessing a company, given that it may not be possible to always pinpoint the exact turnover derived from an excluded activity. This threshold ensures that a minimum of 90% of each holding meets the ethical criteria.

 

There is no static list of firms and organisations eligible for investment by the Fund.  The ethical criteria screening process is ongoing and implemented pre-trade as part of the rigorous RLAM in-house credit analysis process coupled with independent ethical screening of issuing companies (and other companies that we request adhoc) carried out by the EIRiS. As per all of RLAM’s unit funds, weekly the Fund managers will sign off on the portfolio construction certifying that it adheres to the investment and borrowing powers as set out in the prospectus, and the Royal London Unit Trust Managers (RLUTM) Executive Committee will review the ethical criteria themselves on a quarterly basis.

Resources, Affiliations & Corporate Strategies

As previously outlined, our ethical investment process screening is conducted by specialist independent consultancy EIRiS (Ethical Investment Research Services). With over 25 years’ experience, EIRiS is a leading provider of research into the environmental, social and governance (ESG) and ethical performance of companies.

 

When researching a bond we typically use the following sources of corporate information:

 

  • Audited and unaudited financial accounts
  • Ratings reports/analysis
  • Company meetings/presentations
  • Third party equity/credit research
  • Specific investor reports
  • Barclays Live – key tool for relative value assessment
  • ·Regulatory News Service – ‘Investigate’
  • The Credit team employs a range of models, both external and bespoke.

 

The Credit team also uses a number of external providers of information for ongoing surveillance. Principally these are:

 

  • Bloomberg, which is used for bond analytics and descriptive data, including bond documentation and access to equity research reports.
  • S&P, through their ‘Ratings Direct’ and ‘Capital IQ’ services. Ratings Direct provides up to date access to bond rating reports and research and other company and sector financial data across the rated bond universe and Capital IQ provides access to reported financial information of thousands of listed and unlisted companies. Usefully, we are able to embed the financial data provided by Capital IQ into bespoke financial models that provide inputs that are relevant to RLAM’s evaluation of credit. This represents very time effective and high quality provision of credit ratios to enhance the decision making process in higher profile areas of the corporate bond market.
  • Barclay’s Live database to help assess relative value across issuers and sectors and the production of issuer credit curves.

 

This external data is used to supplement RLAM’s research effort and, in particular, enables our Analysts to focus their primary analysis and financial modelling on lower profile corporate bonds that we consider to be less extensively researched by the wider market. Maintenance of research does not follow a prescriptive formula but will typically tend to follow the reporting timetable of our bond issuers (e.g. RMBS/covered bonds – monthly; CMBS – quarterly; corporates – semi-annual) supplemented by the team’s ongoing focus on market developments and the formal alerts outlined above. Whilst we believe a flexible and interactive approach is optimal and practical given our team size, RLAM has a large database of relevant and targeted credit information that can be accessed by all members of the team effectively.

 

RLAM is well served by the sell-side community, particularly in the secured space, as our counterparties know the level of embedded knowledge across the team, both in terms of stocks and underlying client requirements, and the likelihood of receiving a prompt evaluation of any proposal.

 

It is worth re-emphasising that, whether primary inputs have been internally derived or otherwise, we will never delegate the final decision as to whether a bond is selected in our portfolios, given our very different philosophical approach to valuation. In addition, as previously discussed, our team structure and overlap between the research and Fund manager functions ensures that the stock selection process outlined above is not undertaken by any individuals operating in isolation from the rest of the team. By contrast, this process benefits from continuous and ongoing interaction between the whole team, allowing all members of the team, with different and complementary skills and experience, to contribute to investment decisions.

 

 

RLAM Voting Policy:   https://www.rlam.co.uk/Documents-RLAM/Sustainable%20Investing/2017%20RLAM%20Voting%20Policy.pdf

 

 

Royal London Sustainable World Trust Sustainability Themed OEIC/Unit Trust Global Mixed Asset 20/09/2009 More Info (click to view)

SRI / Ethical Overview

 

RLAM’s investment philosophy is to take the principle of sustainability and apply it across different geographies and asset classes. We define sustainable investing as investing in companies that have a net positive benefit to society either through the products and services they offer or in the way they conduct their business. In doing this we support companies having a positive impact on society whilst at the same time growing investor capital.

 

Although the Trust adopts positive screening as its primary method of investment selection, it also offers reassurance from a number of areas of avoidance.

 

 

SRI / themed / ethical assets under management – overview

 

  • Fund Size (GBP):   £337.84m as of 31 May 2017.
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management:   £11,793.22m as of 31 May 2017.
  • Total value of assets covered by responsible ownership policy:   £1,416.04m as of 31 May 2017       (Please note that this figure only includes our sustainable range, however, RLAM’s Responsible Investment Policy will detail how this is an over-arching approach across most of the firm’s assets).
  • Total assets under management:   £104,507.32m as of 31 May 2017.

 

 

 

SRI Policies (Primary strategy in bold)

  • Environmental policy Has a policy which states that the fund considers environmental issues (e.g. pollution, climate change, resource management, environmental impact)
  • Limits exposure to carbon intensive industries Aims to reduce or limit exposure to carbon intensive industries which are considered to be major contributors to climate change. Funds vary - but this is likely to mean a fund has below average levels of investment in areas such as oil & gas, mining or airlines. 'Best in sector' companies may, however, be allowable.
  • Measures positive impacts The fund aims to have a positive effect on society and/or the environment. Fund managers of this kind actively aim to measure the impact of their investments in order to ensure they are having the desired effect.
  • Sustainability policy Considers issues relating to the sustainability agenda (e.g. resource usage, environmental impact and/or social issues such as equal opportunities, human rights and adherence to recognised codes).
  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.
  • Governance policy Considers issues relating to corporate governance such as board structure, remuneration, bribery and/or corporate corruption.
  • Nuclear policy Has a published policy that sets out the fund's position with regard to nuclear power. In most cases this is likely to mean avoidance of companies with significant involvement in the nuclear industry, although some funds may require absolute avoidance.
  • Animal testing policy The fund has criteria that guide when it can or can not invest in companies that are involved in testing their products on animals. This may mean the fund avoids pharmaceutical companies even where testing is required by law (for safety reasons).
  • Tobacco production avoided Does not invest in manufacturers or tobacco (or related) products. The fund, however, may invest in retailers of such products (e.g. supermarkets or hotels.)
  • Armaments manufacturers avoided Avoids companies that manufacture products intended specifically for military use. (Funds may, however, invest in manufacturers of products that are used by the military but are not specifically intended for military/defence use.)
  • Alcohol production excluded (new) This fund avoids companies that are involved in the production of alcohol. See fund literature for further information.
  • Fracking and tar sands excluded Fund avoids companies involved in fracking and tar sands - which are controversial oil and gas extraction practices
  • Gambling avoidance policy This fund avoids companies with significant involvement in the gambling industry. See fund policy for details.
  • Pornography avoidance policy This fund avoids companies that derive significant income from pornography. See fund details for further information.

SRI Features

  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Balances company 'pros and cons'/best in sector This fund manager will look at both the 'positive' things companies do and the 'negative' things they do. They will make balanced judgements, in line with their published strategy, before deciding whether or not to invest. Such funds often invest in the best/most ethical companies across most industries, rather than excluding entire sectors. The fund manager may couple this with 'responsible engagement' activity, where they aim to encourage better, more responsible business practices.
  • Over 50% large cap This fund invests more than half of its money into very large companies. This will typically mean that the market capitalisation (or value) of the companies they hold will be over £5 to £10 billion.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Aims to generate positive impacts This fund aims to help deliver positive social or environmental impacts or outcomes. Strategies and approaches vary. Some funds measure outcomes others do not. See fund literature for further information.
  • Available via an ISA This fund is available via a tax efficient ISA product wrapper
  • Clean energy themed This fund invests in clean technology / clean energy companies. See fund information for further details.

Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Vote all shares at AGMs/EGMs This fund manager always votes the shares they own at annual general meetings (and extraordinary general meetings). This is a key indicator of 'responsible share ownership' and companies taking an interest in the future of the companies they part own.
  • In house responsible ownership/voting expertise Fund managers have in-house expertise that enables them to have in-house voting guidelines, review their own shareholder voting decisions, for example.
  • UK Stewardship Code signatory
  • Publish Responsible Ownership/Stewardship report Fund manager publishes information that sets out their approach to responsible investment ownership - also known as 'Stewardship' following the introduction of 'the Stewardship Code'. This sets out their approach to voting, dialogue with company management and any related activity. This is publicly available.
  • Publish full voting record Fund manager publishes a full record of how they vote at AGMs and EGMs. This information is publicly available.
  • Regularly lead collaborative ESG initiatives This fund manager has told us they regularly initiate or help lead industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
  • PRI signatory This fund management company has signed up to the UN backed 'Principles of Responsible Investment' initiative.

SRI / Ethical Policy

 

Although the Trust adopts positive screening as its primary method of investment selection, it also offers reassurance from a number of areas of avoidance. In particular the portfolio avoids investment in any company that is or is likely to be exposed to:

 

  • Human rights abuses
  • Tobacco and armaments manufacture
  • Products which involve experiments on animals, except for those conducted for the benefit of human or animal health
  • The generation of nuclear power

 

The Trust also avoids investments in companies which derive a material proportion (Over 10%) of their business from:

 

  • Animal fur products
  • Pornography
  • Irresponsible gambling
  • Irresponsible drinking
  • Worker exploitation or exploitative consumer practices.

 

If a company breaches this threshold, then it is likely that that company’s involvement in that excluded sector is a noteworthy part of their business and strategy.

 

Also, this threshold is deemed to be realistic and appropriate in terms of assessing a company, given that it may not be possible to always pinpoint the exact turnover derived from an excluded activity. This threshold ensures that a minimum of 90% of each holding meets the ethical criteria.

 

Finally, the Trust avoids investments in companies that have unacceptable corporate governance and mismanage social, ethical and environmental risk.

 

Resources, Affiliations & Corporate Strategies

The core of our process is the team of five ESG investment specialists. Although each team member is capable of working across the spectrum of financial and ESG analysis required to enact our investment process, there are specialisms. We have two fund managers, one corporate governance specialist and two analysts capable of researching companies on a global basis across the spectrum of financial and ESG issues. The team has a high level of experience and have honed and improved the process over the 14 years since it was implemented. We have a very disciplined approach to investing, based around clear principles and a framework to ensure that that individually and as a team we make consistently high quality investment decisions on behalf of our clients.

 

An external advisory committee supplements this internal expertise. Not only do they provide external, independent oversight as to the adherence to the principles and ethos of the investment process, they are also invaluable in adding to the knowledge base, which exists internally. The advisory committee consists of members from the corporate, academic, investment and charities arenas.

 

We supplement this resource with the effective use of systems. Starting with a global universe of over 18,000 companies it is important we focus our work on those areas most likely to yield strong investment ideas. It particular we use MSCI to identity companies with strong ESG performance, and CSFB Holt to identify companies with inherent value creation and strong competitive advantage. Both these tools allow us to identify where and how best to use our internal resource. At this point we will conduct our own analysis as to the suitability of a potential investment.

 

It is worth emphasising that, whether primary inputs have been internally derived or otherwise, we will never delegate the final decision as to whether a security is selected in our portfolios, given our very different philosophical approach to valuation.

 

 

RLAM Voting Policy:    https://www.rlam.co.uk/Documents-RLAM/Sustainable%20Investing/2017%20RLAM%20Voting%20Policy.pdf

FL Stewardship Corporate Bond Ethically Balanced Life UK Fixed Interest 04/12/2007
Scot Eq Socially Responsible Equity Sustainability Themed Life UK Equity 31/08/1998
EdenTree Responsible Ownership Corporate Activity Not Set Unclassified 29/01/2016 More Info (click to view)

SRI / Ethical Overview

We are active members of the UK Sustainable Investment and Finance Association (UKSIF) and have developed key partnerships with other bodies in this field. These include the UK Stewardship Code, UNPRI and IIGCC. Through those different organisations we collaboratively engage with companies in all sectors on a large variety of ESG issues.

EdenTree Investment Management (EIM) supports the principle of considered voting and will consequently endeavour to register and vote its proxies at all meetings in which it has a shareholding.

Our responsible ownership strategies apply to equity and fixed interest assets in all geographic regions.

SRI Policies (Primary strategy in bold)

-

SRI Features

-

Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Responsible Ownership policy for non SRI funds This fund manager applies Responsible Ownership or 'Stewardship' policies to all or most of their investment assets. This means that active involvement (e.g. voting, dialogue) with the companies they invest in is not limited to ethical or SRI options.
  • Integrates ESG factors into all/most fund research This fund manager researches environmental, social and governance issues when deciding whether or not to invest in a company. This applies to all funds, not only those which are promoted as being 'ethical' or 'SRI themed'.
  • Vote all shares at AGMs/EGMs This fund manager always votes the shares they own at annual general meetings (and extraordinary general meetings). This is a key indicator of 'responsible share ownership' and companies taking an interest in the future of the companies they part own.
  • In house responsible ownership/voting expertise Fund managers have in-house expertise that enables them to have in-house voting guidelines, review their own shareholder voting decisions, for example.
  • Responsible Ownership/ESG a key differentiator The fund managers have said they consider this area to be a key differentiator for their business
  • UK Stewardship Code signatory
  • Publish Responsible Ownership/Stewardship report Fund manager publishes information that sets out their approach to responsible investment ownership - also known as 'Stewardship' following the introduction of 'the Stewardship Code'. This sets out their approach to voting, dialogue with company management and any related activity. This is publicly available.
  • Publish full voting record Fund manager publishes a full record of how they vote at AGMs and EGMs. This information is publicly available.
  • Review(ing) carbon/fossil fuel exposure for all funds This company has reviewed or is currently reviewing (or in other ways 'actively managing') their exposure to carbon intensive industries including (but not only) mining, oil and gas companies. This work is being carried out in the light of climate change related concerns and the company's view of its anticipated impact on the companies they invest in.
  • Regularly lead collaborative ESG initiatives This fund manager has told us they regularly initiate or help lead industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.

SRI / Ethical Policy

Through our membership of UNPRI, IIGCC and additional partnerships we collaboratively engage with companies on various issues. Those include climate change, sustainable agricultural practices, labour conditions in the supply chain and more specialised issues including fracking, Arctic drilling and modern slavery. We also lead engagement initiatives on our own when we believe this adds value, those include controversial weapons, sustainable sourcing practices or stem cell research. Our engagement initiatives also complement our voting policies such as recent work on gender diversity at Board level.

Resources, Affiliations & Corporate Strategies

We have a SRI team of three people responsible for the execution of our SRI policy; they focus on research, engagement and proxy voting. 

All UK proxy voting decisions (includes Guernsey, Jersey and Isle of Man) are taken and executed in-house, signed off by a Fund Manager. We take IVIS (Institutional Voting Information Service) provided by the Investment Association to inform thinking. We have appointed Glass Lewis & Co. to be our sole discretionary research and proxy execution provider in all jurisdictions other than the United Kingdom (including Guernsey, Jersey and the Isle of Man), delegating to it the responsibility for the instruction and execution of international proxy voting at all general and special international company meetings.

The team shares responsibility for company engagement, whether it is in house or in partnership with SRI organisations or other investors.

We are members of PRI, UKSIF, IIGCC and regularly support industry wide responsible stewardship initiatives.

Zurich Henderson Global Care Growth 2001 AL Sustainability Themed Life Global Equity 11/02/2000
OMW IPL F&C Stewardship Growth Pn Ethically Balanced Pension UK Equity 04/02/2014
BlackRock Kames Ethical Pn A Negative Ethical Pension UK Equity 28/03/2002
Epworth Affirmative Corporate Bond Faith Based OEIC/Unit Trust UK Fixed Interest 30/09/2009
WHEB Listed Equity ESG Integration Corporate Activity Not Set Unclassified 29/01/2016 More Info (click to view)

SRI / Ethical Overview

The answers to these questions relate to 100% of WHEB Asset Management LLP’s Assets Under Management, which were £121m as at the end of December 2015.

What differentiates our fundamental analysis from our competitors’ is that we integrate sustainability and financial analysis of companies at every stage of the analytical process.  We single investment team which carries out a holistic analysis of potential investments and do not rely on an outsourced data provider for an ESG rating score.  We believe this enables us to identify qualities, trends, risks and opportunities which are under-researched by mainstream analysts.  The team applies such ‘integrated analysis’ when assessing a company as a potential long term investment within a framework focused on market attractiveness, competitive position, value chain analysis, growth strategy and management quality.  Our analysis considers the range of environmental, social and governance factors together with strategic and financial analysis to derive a score which reflects a company’s business strength, its quality (both sustainable and financial) and its market position.  The stock profile and company score is used as a basis for the team to debate individual and comparative stock fundamentals.

Our integrated company analysis helps us to protect the fund from companies that are poorly positioned to deliver market out-performance over the long-term. Our research considers the robustness of risk management systems, governance processes, the extent of any involvement in controversial issues or activities and overall company alignment with sustainability issues and themes. Based on this analysis, we are able to form a view of a company’s quality and suitability for the fund. If the company is, in our view, exposed to excessive reputational risk, or has significant activity in areas that are not consistent with the philosophy of the fund, then it is unlikely to be selected for investment. 

The overview slide below provides a summary of the integrated framework that we employ to conduct fundamental bottom up research, as described above.  Factors commonly considered in traditional financial analysis are highlighted in blue, with those often labelled ESG factors in green. We believe that this more holistic assessment and understanding potential investments provide a stronger basis on which to shape our opinion on valuation and risk.

More information on our approach to ESG issues and to broader positive ‘impact’ is available in our Impact Report at http://www.whebgroup.com/media/2015/04/WHEB-Insight_Impact-Report_2015.pdf


Our ESG integration principles apply to equity assets in all geographic regions.

SRI Policies (Primary strategy in bold)

-

SRI Features

-

Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Responsible Ownership policy for non SRI funds This fund manager applies Responsible Ownership or 'Stewardship' policies to all or most of their investment assets. This means that active involvement (e.g. voting, dialogue) with the companies they invest in is not limited to ethical or SRI options.
  • Integrates ESG factors into all/most fund research This fund manager researches environmental, social and governance issues when deciding whether or not to invest in a company. This applies to all funds, not only those which are promoted as being 'ethical' or 'SRI themed'.
  • Vote all shares at AGMs/EGMs This fund manager always votes the shares they own at annual general meetings (and extraordinary general meetings). This is a key indicator of 'responsible share ownership' and companies taking an interest in the future of the companies they part own.
  • In house responsible ownership/voting expertise Fund managers have in-house expertise that enables them to have in-house voting guidelines, review their own shareholder voting decisions, for example.
  • Responsible Ownership/ESG a key differentiator The fund managers have said they consider this area to be a key differentiator for their business
  • UK Stewardship Code signatory
  • Publish Responsible Ownership/Stewardship report Fund manager publishes information that sets out their approach to responsible investment ownership - also known as 'Stewardship' following the introduction of 'the Stewardship Code'. This sets out their approach to voting, dialogue with company management and any related activity. This is publicly available.
  • Publish full voting record Fund manager publishes a full record of how they vote at AGMs and EGMs. This information is publicly available.
  • Review(ing) carbon/fossil fuel exposure for all funds This company has reviewed or is currently reviewing (or in other ways 'actively managing') their exposure to carbon intensive industries including (but not only) mining, oil and gas companies. This work is being carried out in the light of climate change related concerns and the company's view of its anticipated impact on the companies they invest in.
  • Regularly lead collaborative ESG initiatives This fund manager has told us they regularly initiate or help lead industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.

SRI / Ethical Policy

Information on these topics can be found on the FP WHEB Sustainability Fund entry in the OEIC/Unit Trust product category.

Resources, Affiliations & Corporate Strategies

We have a single, integrated investment team.  ESG research is carried out as a part of investment analysis by all members of the team.

We use ESG data from Sustainalytics as an input into the research process.  This is just one source of ESG data, alongside data directly sourced from company management reports or website, NGOs, and other networks.

 

FL F&C Responsible UK Equity Growth AL Ethically Balanced Life UK Equity 13/05/2007
OMW Kames Ethical Corporate Bond Negative Ethical Life Not Set Fixed Interest 26/09/2006
FL Mym Legal & General (PMC) Ethical GLobal Equity Index Pn Sustainability Themed Pension Global Equity 02/05/2016
FL Stewardship Managed Pn Acc Ethically Balanced Pension UK Mixed Asset 02/11/1998
WAY Green Portfolio Way Ret Inc Environmentally Themed OEIC/Unit Trust Global Equity 01/02/2010
OMW Henderson Global Care Growth Pn Sustainability Themed Pension Global Equity 22/07/2012 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Henderson Global Care Growth" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing.

SRI Policies (Primary strategy in bold)

  • Social policy Considers social issues (e.g. human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such as the UN Global Compact).

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

SIP Kames Ethical Cautious Managed S6 Negative Ethical Life UK Mixed Asset 01/01/1970
Fidelity F&C Responsible UK Equity Growth Pn 4 Ethically Balanced Pension UK Equity 30/07/2005
Standard Life Ethical UK Pn S5 Negative Ethical Pension UK Equity 14/09/2006 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Standard Life Inv UK Ethical Trust" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing.

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

FL Ethical Safeguard Optimiser S2 Ethically Balanced Life UK Equity 08/04/2009
CM Schroder QEP Global Core Pn Unclassified Pension Global Equity 03/03/2008
FL Kames Ethical Cautious Managed EP Negative Ethical Pension UK Mixed Asset 05/05/2008 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Kames Ethical Cautious Managed" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing. 

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

L&G Ethical Global Equity Index Pn Sustainability Themed Pension Global Equity 10/05/2010
SWIS Ethical Ethically Balanced Life Global Equity 31/10/2000
OMW F&C Responsible UK Equity Income Pn Ethically Balanced Pension UK Equity Income 26/09/2005 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "BMO (F&C) Responsible UK Income" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing.

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

BMO Global Asset Management (EMEA) ESG Integration Corporate Activity Not Set Unclassified 01/01/1970 More Info (click to view)

SRI / Ethical Overview

BMO Global Asset Management (EMEA) has an in-house Governance and Sustainable Investment (GSI) team of ESG experts, with extensive experience gained in financial services, the media, consultancy, public policy and industry. The team is responsible for all ESG research, engagement and voting. We take an investment-driven perspective on ESG risks and engagement. Our analysis and engagement results are therefore of direct relevance to the integration of ESG issues into the investment process and can be used to support this effectively.

As a long-term investor, we aim to build an understanding of the fundamental factors shaping the risks and opportunities of the entities that issue the equity or the debt we invest in. We believe that ESG issues can have a material impact on their performance and on the economy as a whole, and that a robust commitment to ESG drivers is an integral part of good risk management. ESG integration involves consideration of factors such as environmental performance, human rights, business ethics and corporate governance as a part of the investment decision-making process; we believe it should be a standard part of analysing the true long-term value of a business.

Asset management teams lead our approach to identifying and integrating material ESG issues into each of their standard investment processes. They have access to a range of ESG data and research - both third party and proprietary – which are used to systematically flag potentially material issues that are then subject to further analysis to determine the relevance to the investment case with the support of our specialist Governance and Sustainable Investment Team. The GSI group and fund managers collaborate closely including through joint company meetings and regular internal seminars discussing key ESG trends such as climate change, bribery and corruption and tax policies and their relevance to company valuation.

The application of integration varies across investment styles and asset classes and is described in more detail below.

At a more thematic level, over the last year, the GSI team has also held meetings with fund managers on topics including stranded assets, aggressive corporate tax strategies and the risks associated with bribery and corruption in China. ESG research is now incorporated as part of the research process for strategies across the business, both in equity and fixed income asset classes.

SRI Policies (Primary strategy in bold)

-

SRI Features

-

Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Responsible Ownership policy for non SRI funds This fund manager applies Responsible Ownership or 'Stewardship' policies to all or most of their investment assets. This means that active involvement (e.g. voting, dialogue) with the companies they invest in is not limited to ethical or SRI options.
  • Integrates ESG factors into all/most fund research This fund manager researches environmental, social and governance issues when deciding whether or not to invest in a company. This applies to all funds, not only those which are promoted as being 'ethical' or 'SRI themed'.
  • Vote all shares at AGMs/EGMs This fund manager always votes the shares they own at annual general meetings (and extraordinary general meetings). This is a key indicator of 'responsible share ownership' and companies taking an interest in the future of the companies they part own.
  • In house responsible ownership/voting expertise Fund managers have in-house expertise that enables them to have in-house voting guidelines, review their own shareholder voting decisions, for example.
  • Responsible Ownership/ESG a key differentiator The fund managers have said they consider this area to be a key differentiator for their business
  • UK Stewardship Code signatory
  • Publish Responsible Ownership/Stewardship report Fund manager publishes information that sets out their approach to responsible investment ownership - also known as 'Stewardship' following the introduction of 'the Stewardship Code'. This sets out their approach to voting, dialogue with company management and any related activity. This is publicly available.
  • Publish full voting record Fund manager publishes a full record of how they vote at AGMs and EGMs. This information is publicly available.
  • Review(ing) carbon/fossil fuel exposure for all funds This company has reviewed or is currently reviewing (or in other ways 'actively managing') their exposure to carbon intensive industries including (but not only) mining, oil and gas companies. This work is being carried out in the light of climate change related concerns and the company's view of its anticipated impact on the companies they invest in.
  • Regularly lead collaborative ESG initiatives This fund manager has told us they regularly initiate or help lead industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.

SRI / Ethical Policy

To continue from discussions in Question 2 on our ESG integration; from an educational perspective, we prefer not to have a formulaic educational process in place. Instead, we provide individual and group training on specific ESG issues as required or requested by investment desks. This allows us to tailor the educational experience to the particular needs of an investment team. We also take input and guidance for developing our policy and approach to engagement.

Across our funds, ESG considerations are taken into account by BMO Global Asset Management (EMEA)’s Fund Managers when assessing companies. These considerations depend on the nature of the company, the sector, the region and the likely impact on valuation and long-term investor returns. We actively monitor investee companies, including performance and internal and external developments that drive the company’s value and risk. Among other things, this includes regular meetings by fund managers with management to discuss strategic, financial and operational matters, voting on fund holdings and engaging with Boards and management of companies, when relevant, on governance, social, ethical and environmental themes.

To support this activity we have developed an in-house quantitative ESG risk tool, based on selecting the most relevant data points from our provider MSCI ESG. This provides ESG related scores and analysis on 6,000 companies and serves as an initial filter to identify which companies have clear shortcomings in environmental, social or governance issues. The tool captures ESG risks faced by a company as a result of its own policies and performance, controversies, as well as those faced more broadly as a result of sector and countries of operations. This data is distributed to fund managers to support the integration of ESG issues in the investment process and is used to identify companies for proactive engagement by our specialist Governance and Sustainable Investment (GSI) team. The tool allows us to identify the most-at-risk investments from an ESG perspective which allows the investment teams to delve further into the issues by accessing company disclosures and meetings alongside external and internal research. To further capture breaches of ESG norms we monitor data on United Nation Global Compact (UNGC) breaches, which is reviewed on a quarterly basis. Following investment, we exercise our shareholder rights as responsible stewards of capital by actively engaging with companies and voting at annual shareholder meetings.

Different approaches are used across asset classes as appropriate. In relation to sovereign debt, for instance, country-level ESG scores are constructed from a range of sources such as the World Bank and Transparency International and considered alongside traditional risk factors by the team. In Private Equity, we regular survey all General Partners (GPs) on their approach to integrating ESG factors and regularly publish client reports on the outcomes of this process.

Resources, Affiliations & Corporate Strategies

All members of the GSI team are specialists within specific sectors. Details of their roles and experience can be viwed on the overlay entry of corprate activity. Our sources of research, help link specialist and nonspecialist in-house team:

  • MSCI ESG and Governance Metrics International: BMO Global Asset Management (EMEA)’s ESG risk data is provided by MSCI ESG and Governance Metrics International. The latter is now a subsidiary of the former following its acquisition in 2014.
  • Governance Metrics International (GMI): company-specific corporate governance data, providing company research and ratings for 4000 companies in the US, Europe, Asia and Emerging Markets.
  • We also consider research by broader stakeholders including NGOs such as Transparency International (anti-corruption), Oxfam and Human Rights Watch. Our research is also informed by our networks that may provide briefings and publications, including the UN PRI, International Corporate Governance Network (ICGN) and Asian Corporate Governance Association (ACGA). We may also draw on external consultants with expertise in particular areas, although presently we have no such arrangements underway.


Our providers are reviewed on a regular basis to ensure we are getting the best possible quality of service and analysis.

Epworth Affirmative Fixed Interest for Charities Ethically Balanced OEIC/Unit Trust UK Fixed Interest 30/08/2001
Cler Med Ethical Pn Negative Ethical Pension Global Hedge 31/10/2000
Henderson Global Care Managed A Ethically Balanced OEIC/Unit Trust Global Mixed Asset 01/03/1996 More Info (click to view)

SRI / Ethical Overview

The Global Care Managed Fund is a multi-asset fund and is split broadly 40% international, 40% UK equities and 20% global fixed income. The fund’s objective is to achieve above average long-term capital growth by investing in a mix of assets including UK and overseas equities and fixed interest securities. The Henderson Global SRI Equities team manages the international sleeve of the portfolio and retains overall responsibility for asset allocation decisions. The UK sleeve is managed by the Henderson Global Equity Income team and the global fixed income sleeve is managed by the Henderson Fixed Income team. The international and UK portions of the Fund follow the investment processes of the Global Care Growth Fund and Global Care UK Income Fund respectively.

 

The fund’s ESG principals are centered around both Sustainability and Corporate responsibility:

Sustainability: the long-term social and environmental challenges facing the world are reshaping the economic landscape. Whatever industry or geography a business is in, an environmental and sustainable approach will increasingly be required and rewarded by investors. Additionally, new investment opportunities will be created for those companies providing sustainability solutions.

 

Corporate responsibility: how companies manage their responsibilities in the marketplace, the workplace, in the community and the environment is now an important dimension of business practice, and thus, financial performance. SRI analysis adds value to investment by generating insights into the overall quality of management in the face of changing risks and expectations.

 

SRI / themed / ethical assets under management – overview

 

As of 31.3.2017 Henderson had £962m in SRI strategies of which Nick and Hamish had responsibility for £783m.

 

  • Fund Size (GBP):   £247m at 31.3.2017
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management:   £962m at 31.3.2017
  • Total value of assets covered by responsible ownership policy:   All of Henderson’s £103.1bn in AuM is covered by the responsible ownership policy
  • Total assets under management:   Henderson had AuM of over £103.1bn at 31.3.2017

 

SRI Policies (Primary strategy in bold)

  • Environmental policy Has a policy which states that the fund considers environmental issues (e.g. pollution, climate change, resource management, environmental impact)
  • Health & wellbeing policies Has a policy that sets out the fund's aim to support companies that offer positive lifestyle, health or 'wellbeing' related benefits.
  • Limits exposure to carbon intensive industries Aims to reduce or limit exposure to carbon intensive industries which are considered to be major contributors to climate change. Funds vary - but this is likely to mean a fund has below average levels of investment in areas such as oil & gas, mining or airlines. 'Best in sector' companies may, however, be allowable.
  • Sustainability policy Considers issues relating to the sustainability agenda (e.g. resource usage, environmental impact and/or social issues such as equal opportunities, human rights and adherence to recognised codes).
  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.
  • Social policy Considers social issues (e.g. human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such as the UN Global Compact).
  • Governance policy Considers issues relating to corporate governance such as board structure, remuneration, bribery and/or corporate corruption.
  • Animal welfare policy The fund has a policy that requires specific animal welfare standards to be adopted by companies in order for them to be allowable for investment within the fund.
  • Nuclear policy Has a published policy that sets out the fund's position with regard to nuclear power. In most cases this is likely to mean avoidance of companies with significant involvement in the nuclear industry, although some funds may require absolute avoidance.
  • Animal testing policy The fund has criteria that guide when it can or can not invest in companies that are involved in testing their products on animals. This may mean the fund avoids pharmaceutical companies even where testing is required by law (for safety reasons).
  • Tobacco production avoided Does not invest in manufacturers or tobacco (or related) products. The fund, however, may invest in retailers of such products (e.g. supermarkets or hotels.)
  • Armaments manufacturers avoided Avoids companies that manufacture products intended specifically for military use. (Funds may, however, invest in manufacturers of products that are used by the military but are not specifically intended for military/defence use.)
  • Coal, oil &/or gas majors excluded This fund will not invest in the largest coal, oil and/or gas producing companies. Funds vary. Some may invest in smaller producers or companies where this is considered to be a relatively minor part of their business.
  • Climate change / GHG policy Considers climate change related issues such as greenhouse gas/carbon emissions. Strategies vary but funds that consider climate issues typically require the careful management of climate related risks (and opportunities) if they are to select a company for investment.
  • Invests in clean energy/renewables This fund invests in companies in the clean technology/renewable energy related industries. Fund strategies vary. In practice some may invest a small percentage in this area whereas others may have significant exposure to this area. Check fund literature for details.
  • Alcohol production excluded (new) This fund avoids companies that are involved in the production of alcohol. See fund literature for further information.
  • Fracking and tar sands excluded Fund avoids companies involved in fracking and tar sands - which are controversial oil and gas extraction practices
  • Gambling avoidance policy This fund avoids companies with significant involvement in the gambling industry. See fund policy for details.
  • Pornography avoidance policy This fund avoids companies that derive significant income from pornography. See fund details for further information.

SRI Features

  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Eurosif transparency This fund has met the standards of the EUROSIF transparency Code. This means that they are a leading fund in terms of openness and transparency, publishing - for example - extensive information about where they invest and how they deal with companies.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • Faith friendly These funds are likely to have attributes that some faith based investors may welcome such as opposition to armaments, gambling and alcohol.
  • Strictly screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.
  • Aims to generate positive impacts This fund aims to help deliver positive social or environmental impacts or outcomes. Strategies and approaches vary. Some funds measure outcomes others do not. See fund literature for further information.
  • Available via an ISA This fund is available via a tax efficient ISA product wrapper
  • Clean energy themed This fund invests in clean technology / clean energy companies. See fund information for further details.

Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Responsible Ownership policy for non SRI funds This fund manager applies Responsible Ownership or 'Stewardship' policies to all or most of their investment assets. This means that active involvement (e.g. voting, dialogue) with the companies they invest in is not limited to ethical or SRI options.
  • Integrates ESG factors into all/most fund research This fund manager researches environmental, social and governance issues when deciding whether or not to invest in a company. This applies to all funds, not only those which are promoted as being 'ethical' or 'SRI themed'.
  • Vote all shares at AGMs/EGMs This fund manager always votes the shares they own at annual general meetings (and extraordinary general meetings). This is a key indicator of 'responsible share ownership' and companies taking an interest in the future of the companies they part own.
  • In house responsible ownership/voting expertise Fund managers have in-house expertise that enables them to have in-house voting guidelines, review their own shareholder voting decisions, for example.
  • Responsible Ownership/ESG a key differentiator The fund managers have said they consider this area to be a key differentiator for their business
  • UK Stewardship Code signatory
  • Publish Responsible Ownership/Stewardship report Fund manager publishes information that sets out their approach to responsible investment ownership - also known as 'Stewardship' following the introduction of 'the Stewardship Code'. This sets out their approach to voting, dialogue with company management and any related activity. This is publicly available.
  • Publish full voting record Fund manager publishes a full record of how they vote at AGMs and EGMs. This information is publicly available.
  • Review(ing) carbon/fossil fuel exposure for all funds This company has reviewed or is currently reviewing (or in other ways 'actively managing') their exposure to carbon intensive industries including (but not only) mining, oil and gas companies. This work is being carried out in the light of climate change related concerns and the company's view of its anticipated impact on the companies they invest in.
  • PRI signatory This fund management company has signed up to the UN backed 'Principles of Responsible Investment' initiative.

SRI / Ethical Policy

The Global Care Managed fund is comprised of three investment sub funds – international equities, UK equities and global fixed income. The international equities sub fund is managed according to the investment principles of the Global Care Growth fund. The UK equities sub fund is managed according to the investment principles of the Global Care UK Income fund. The global fixed income sub fund is managed with a focus on best-in-class companies with respect to their ESG criteria and applying the same avoidance criteria as for the Global Care UK Income fund.

 

Henderson Global Care Growth Fund

The Global Care Growth fund employs an integrated approach to sustainable and responsible investment (SRI), combining positive and negative investment criteria, and considering both the products of a business (what it does) and the operations (how it does it).

 

Positive selection criteria

The positive criteria lead the managers to invest in businesses that have a positive impact on society and the environment by virtue of the products or services they sell, and by the way in which they manage their operations, thereby supporting the Sustainable Development Goals adopted by the United Nations in 2015.

 

The managers use a thematic framework to identify those businesses that are strategically aligned with the four megatrends of climate change, resource constraints, population growth and an ageing population, and by virtue of this offer the potential for sustainable revenue growth. Derived from the four megatrends, the fund has ten sustainability themes of which five are environmental and five are social. For every investment it must be possible to identify at least one of the following themes as a value driver to the business. For a more detailed explanation of our themes please refer to our Ten themes for sustainable investment document. https://az768132.vo.msecnd.net/documents/54768_2016_10_31_12_54_12_860.gzip.pdf.

 

Five environmental themes: Cleaner Energy, Sustainable Transport, Water Management, Environmental Services, Efficiency

 

Five social themes: Health, Sustainable Property & Finance, Knowledge & Technology, Safety, Quality of Life

 

ESG integration

Environmental, social and governance (ESG) research is undertaken for all investments. The managers believe companies with sound governance practices and strong stakeholder relations, that manage relevant environmental and social risks responsibly, have a greater propensity to create sustainable value for shareholders.

 

Company engagement

Company engagement forms an important part of the investment process. Meetings incorporate a

wide range of topics including environmental and social issues where relevant. The managers take an active approach to communicating their views to companies and seeking improvements in performance, including appropriate standards of corporate responsibility.

 

Avoidance criteria

In many ways the negative criteria are a reflection of the positive criteria. The fund seeks to avoid those businesses that stand to be disrupted by the environmental and social megatrends (and that therefore have unsustainable business models), and also avoid those that are involved in activities regarded as being contrary to the development of a sustainable economy and harmonious society.

 

All holdings in the fund are compliant with the UN Global Compact, whose Ten Principles cover human rights, the International Labour Organisation’s declaration on workers’ rights, corruption and environmental pollution.

 

Further detail can be found on the fund’s website: https://www.henderson.com/ukpi/fund/92/henderson-global-care-growth-fund.

 

Henderson Global Care UK Income fund

 

The Global Care UK Income fund seeks to invest in responsibly run businesses that exhibit good dividend growth and generate good capital returns over the long term. In order to achieve these aims the fund manager spends a considerable amount of time assessing the sustainability of a company’s long term business model. This involves identifying any factors, including material environmental, social and governance issues which may impact long term profit, cash flow and dividend growth. Company engagement also forms an important part of the investment process.

 

The avoidance criteria are the same as for the Global Care Growth fund, with the exception of meat & dairy production and animal testing for medical purposes. Further detail can be found on the fund’s website: https://www.henderson.com/ukpi/fund/94/henderson-global-care-uk-income-fund.

Resources, Affiliations & Corporate Strategies

INTERNAL research resources

 

Henderson wide

The managers of the Global Care Managed fund have access to research conducted by Henderson’s wider team of investment professionals via the Henderson Research Hub. The Governance and Responsible Investment (GRI) team also provide advice and guidance on a range of ESG issues affecting existing and potential fund investments, market trends and development of ESG themes. The GRI team also assists with engaging with company management on ESG issues.

 

Internal research is sourced from company meetings, company financial statements and also sell-side analysts. The investment team integrates ESG considerations into investment decision making and ownership practices. They undertake an evaluation of each investee company’s business and workplace standards, social impact, and corporate stewardship. They believe that sustainability and corporate responsibility (CR) plays a vital role in the long-term performance of a company.

 

EXTERNAL research resources

           

Vigeo EIRIS is the main source of management for the Funds’ exclusion criteria. Vigeo EIRIS is one of the largest sustainable, responsible and ethical research companies globally. The Vigeo EIRIS research team covers over 3,000 companies and provides the managers with detailed reports into a company’s activities, to ensure adherence to the Fund’s strict ethical criteria. Should an investment idea not be covered already, then Vigeo EIRIS conduct bespoke research on behalf of the portfolio managers.

 

Other sources of external research are:

 

  • MSCI, ISS, RepRisk, IVIS, CDP, TruCost, HOLT
  • Stock broker research
  • Strategist research

 

External resources such as MSCI and TruCost are used to populate the team’s monthly ESG exposure, benchmarking and risk monitoring report. This report shows the exposure of the portfolio to companies’ rated highest risk for environmental & social performance, ESG controversies, corporate governance issues and carbon exposure relative to the fund’s benchmark.

Blackrock LGIM Ethical UK Equity Index H Sustainability Themed Life UK Equity 28/01/2010
7IM Sustainable Balance C Acc Sustainability Themed OEIC/Unit Trust Global Mixed Asset 02/02/2007 More Info (click to view)

SRI / Ethical Overview

The Equity and Fixed Interest components of the fund are managed by Sarasin LLP, leaders in the field of researching sustainable investments. 7IM manage the investment overlay which includes exchange traded funds as well as carefully chosen funds which are within the ethical and sustainable criteria.

While there are some ethical exclusions (nuclear, armaments, pornography, GMOs, etc,) the choices of investments are made mainly on positive social and environmental factors.  The equity and bond choices are based on their positioning, in terms of social analysis and environmental matters, compared with their peers both in quantitative or qualitative terms as judged by Sarasin using their proprietary Sarasin Sustainability Matrix®.  The ETFs and funds chosen by 7IM must also comply with the Sarasin principles as well as the ethical exclusions and are generally thematic plays on sustainable themes as well as alternative investments in areas such as sustainable forestry.

The social factors judged to be important in positioning on the matrix include having a good relationship with suppliers, capital providers, the general public, its employees, clients and competitors based on criteria of health, participation, distribution of wealth, knowledge and controversial activities.

The environmental aspects include such things as environmental strategy, policy and management systems, pre-production sourcing, production processes, products and services.

 

SRI / themed / ethical assets under management – overview

  • Fund Size (GBP): £75m
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management:  £75m
  • Total value of assets covered by responsible ownership policy: £75m
  • Total assets under management: £11bn

 

SRI Policies (Primary strategy in bold)

  • Environmental policy Has a policy which states that the fund considers environmental issues (e.g. pollution, climate change, resource management, environmental impact)
  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.
  • Sustainability policy Considers issues relating to the sustainability agenda (e.g. resource usage, environmental impact and/or social issues such as equal opportunities, human rights and adherence to recognised codes).
  • Social policy Considers social issues (e.g. human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such as the UN Global Compact).
  • Governance policy Considers issues relating to corporate governance such as board structure, remuneration, bribery and/or corporate corruption.
  • Tobacco production avoided Does not invest in manufacturers or tobacco (or related) products. The fund, however, may invest in retailers of such products (e.g. supermarkets or hotels.)
  • Armaments manufacturers avoided Avoids companies that manufacture products intended specifically for military use. (Funds may, however, invest in manufacturers of products that are used by the military but are not specifically intended for military/defence use.)
  • Limits exposure to carbon intensive industries Aims to reduce or limit exposure to carbon intensive industries which are considered to be major contributors to climate change. Funds vary - but this is likely to mean a fund has below average levels of investment in areas such as oil & gas, mining or airlines. 'Best in sector' companies may, however, be allowable.
  • Nuclear policy Has a published policy that sets out the fund's position with regard to nuclear power. In most cases this is likely to mean avoidance of companies with significant involvement in the nuclear industry, although some funds may require absolute avoidance.
  • Invests in clean energy/renewables This fund invests in companies in the clean technology/renewable energy related industries. Fund strategies vary. In practice some may invest a small percentage in this area whereas others may have significant exposure to this area. Check fund literature for details.
  • Alcohol production excluded (new) This fund avoids companies that are involved in the production of alcohol. See fund literature for further information.
  • Gambling avoidance policy This fund avoids companies with significant involvement in the gambling industry. See fund policy for details.
  • Pornography avoidance policy This fund avoids companies that derive significant income from pornography. See fund details for further information.

SRI Features

  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Balances company 'pros and cons'/best in sector This fund manager will look at both the 'positive' things companies do and the 'negative' things they do. They will make balanced judgements, in line with their published strategy, before deciding whether or not to invest. Such funds often invest in the best/most ethical companies across most industries, rather than excluding entire sectors. The fund manager may couple this with 'responsible engagement' activity, where they aim to encourage better, more responsible business practices.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • Strictly screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.
  • Aims to generate positive impacts This fund aims to help deliver positive social or environmental impacts or outcomes. Strategies and approaches vary. Some funds measure outcomes others do not. See fund literature for further information.
  • Available via an ISA This fund is available via a tax efficient ISA product wrapper

Corporate Activity

  • Vote all shares at AGMs/EGMs This fund manager always votes the shares they own at annual general meetings (and extraordinary general meetings). This is a key indicator of 'responsible share ownership' and companies taking an interest in the future of the companies they part own.
  • In house responsible ownership/voting expertise Fund managers have in-house expertise that enables them to have in-house voting guidelines, review their own shareholder voting decisions, for example.
  • UK Stewardship Code signatory
  • Publish Responsible Ownership/Stewardship report Fund manager publishes information that sets out their approach to responsible investment ownership - also known as 'Stewardship' following the introduction of 'the Stewardship Code'. This sets out their approach to voting, dialogue with company management and any related activity. This is publicly available.
  • Publish full voting record Fund manager publishes a full record of how they vote at AGMs and EGMs. This information is publicly available.

SRI / Ethical Policy

The fund will only invest in individual securities where the underlying companies, countries and institutions score well on social and environmental criteria.

Certain products and manufacturing processes are so high-risk that they are not rated as being compatible with the criteria. Companies from certain industries or with significant exposure to certain activities are precluded, such as: Tobacco industry, Armaments, Pornography, Nuclear power generation or Chlorine, agrochemicals and GMOs in agriculture. Alcohol and Gambling will shortly be added as exclusions in the new Prospectus.

The fund may also invest in collective investment vehicles (including exchange traded funds and open or closed ended funds) that track recognised ethical or socially responsible indices or are managed with appropriate ethical, social or environmental criteria.

 

Resources, Affiliations & Corporate Strategies

In-house research: macro and economic analysis based on a wide range of research material divided between broker research (too many to list here but the main ones such as Citi and Goldman Sachs as well as smaller brokers such as Numis and Winterflood) and external research (ASR, BCA, Capital Economics, Gavekal, MRB) and on conclusions of quarterly asset allocation committee meetings which are attended by representatives from independent research houses and independent contributors from the fund management industry.

7IM outsources the individual equity selection and the individual bond selection to Sarasin who have strong ethical, ESG and SRI research capabilities with a large team of analysts who are able to assess company and country SRI criteria.

7IM controls the overall asset allocation of the fund both strategic, keeping it within IA sector guidelines (Mixed Investment 20-60% Shares), within a balanced risk profile as defined by 7IM.

 

FL F&C Responsible UK Equity Income AP Ethically Balanced Pension UK Equity Income 01/02/2007
AXA Ethical Distribution Ret Acc Negative Ethical OEIC/Unit Trust UK Mixed Asset 24/11/2008
Zurich Henderson Global Care Growth ZP Sustainability Themed Pension Global Equity 17/11/2003 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Henderson Global Care Growth" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing.

SRI Policies (Primary strategy in bold)

  • Social policy Considers social issues (e.g. human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such as the UN Global Compact).

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Kames Ethical Equity Pn S6 Negative Ethical Pension UK Equity 28/09/2008 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Kames Ethical Equity" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing.

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

BMO (F&C) Responsible UK Equity Growth 1 Acc Ethically Balanced OEIC/Unit Trust UK Equity 31/05/1984 More Info (click to view)

SRI / Ethical Overview

The Fund’s focus is on achieving long term capital growth through investments in approved UK companies. Within its ethical principles the fund is managed as any other – the Lead Fund Manager, Catherine Stanley, uses bottom up company analysis within a clear portfolio construction framework to create a fund capable of generating compelling investment performance. The ethical principles mean we are largely precluded from investing in some sectors, but have a large number of companies to choose from nevertheless.

 

SRI / themed / ethical assets under management – overview 

 

  •  Fund Size:    (GBP) £390.0m as at 30 June 2017
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management:   £1,693m as at 30 June 2017 
  • Total value of assets covered by responsible ownership policy:   As at 31 March 2017 our flagship reo® service, a global engagement and proxy voting service that can be applied across equities and corporate credit, covered a total of £108,913m of assets for internal holdings and external clients.
  • Total assets under management:    £187,319m as at 31 March 2017

 

 

SRI Policies (Primary strategy in bold)

  • Environmental policy Has a policy which states that the fund considers environmental issues (e.g. pollution, climate change, resource management, environmental impact)
  • Health & wellbeing policies Has a policy that sets out the fund's aim to support companies that offer positive lifestyle, health or 'wellbeing' related benefits.
  • Limits exposure to carbon intensive industries Aims to reduce or limit exposure to carbon intensive industries which are considered to be major contributors to climate change. Funds vary - but this is likely to mean a fund has below average levels of investment in areas such as oil & gas, mining or airlines. 'Best in sector' companies may, however, be allowable.
  • Sustainability policy Considers issues relating to the sustainability agenda (e.g. resource usage, environmental impact and/or social issues such as equal opportunities, human rights and adherence to recognised codes).
  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.
  • Social policy Considers social issues (e.g. human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such as the UN Global Compact).
  • Governance policy Considers issues relating to corporate governance such as board structure, remuneration, bribery and/or corporate corruption.
  • Animal welfare policy The fund has a policy that requires specific animal welfare standards to be adopted by companies in order for them to be allowable for investment within the fund.
  • Nuclear policy Has a published policy that sets out the fund's position with regard to nuclear power. In most cases this is likely to mean avoidance of companies with significant involvement in the nuclear industry, although some funds may require absolute avoidance.
  • Animal testing policy The fund has criteria that guide when it can or can not invest in companies that are involved in testing their products on animals. This may mean the fund avoids pharmaceutical companies even where testing is required by law (for safety reasons).
  • Tobacco production avoided Does not invest in manufacturers or tobacco (or related) products. The fund, however, may invest in retailers of such products (e.g. supermarkets or hotels.)
  • Armaments manufacturers avoided Avoids companies that manufacture products intended specifically for military use. (Funds may, however, invest in manufacturers of products that are used by the military but are not specifically intended for military/defence use.)
  • Coal, oil &/or gas majors excluded This fund will not invest in the largest coal, oil and/or gas producing companies. Funds vary. Some may invest in smaller producers or companies where this is considered to be a relatively minor part of their business.
  • Climate change / GHG policy Considers climate change related issues such as greenhouse gas/carbon emissions. Strategies vary but funds that consider climate issues typically require the careful management of climate related risks (and opportunities) if they are to select a company for investment.
  • Invests in clean energy/renewables This fund invests in companies in the clean technology/renewable energy related industries. Fund strategies vary. In practice some may invest a small percentage in this area whereas others may have significant exposure to this area. Check fund literature for details.
  • Alcohol production excluded (new) This fund avoids companies that are involved in the production of alcohol. See fund literature for further information.
  • Fracking and tar sands excluded Fund avoids companies involved in fracking and tar sands - which are controversial oil and gas extraction practices
  • Gambling avoidance policy This fund avoids companies with significant involvement in the gambling industry. See fund policy for details.
  • Pornography avoidance policy This fund avoids companies that derive significant income from pornography. See fund details for further information.

SRI Features

  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Balances company 'pros and cons'/best in sector This fund manager will look at both the 'positive' things companies do and the 'negative' things they do. They will make balanced judgements, in line with their published strategy, before deciding whether or not to invest. Such funds often invest in the best/most ethical companies across most industries, rather than excluding entire sectors. The fund manager may couple this with 'responsible engagement' activity, where they aim to encourage better, more responsible business practices.
  • Eurosif transparency This fund has met the standards of the EUROSIF transparency Code. This means that they are a leading fund in terms of openness and transparency, publishing - for example - extensive information about where they invest and how they deal with companies.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • Strictly screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.
  • Aims to generate positive impacts This fund aims to help deliver positive social or environmental impacts or outcomes. Strategies and approaches vary. Some funds measure outcomes others do not. See fund literature for further information.
  • Available via an ISA This fund is available via a tax efficient ISA product wrapper
  • Over 50% small/mid cap More than half of this funds assets are invested in smaller or medium sized companies.

Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Responsible Ownership policy for non SRI funds This fund manager applies Responsible Ownership or 'Stewardship' policies to all or most of their investment assets. This means that active involvement (e.g. voting, dialogue) with the companies they invest in is not limited to ethical or SRI options.
  • Integrates ESG factors into all/most fund research This fund manager researches environmental, social and governance issues when deciding whether or not to invest in a company. This applies to all funds, not only those which are promoted as being 'ethical' or 'SRI themed'.
  • Vote all shares at AGMs/EGMs This fund manager always votes the shares they own at annual general meetings (and extraordinary general meetings). This is a key indicator of 'responsible share ownership' and companies taking an interest in the future of the companies they part own.
  • In house responsible ownership/voting expertise Fund managers have in-house expertise that enables them to have in-house voting guidelines, review their own shareholder voting decisions, for example.
  • Responsible Ownership/ESG a key differentiator The fund managers have said they consider this area to be a key differentiator for their business
  • UK Stewardship Code signatory
  • Publish Responsible Ownership/Stewardship report Fund manager publishes information that sets out their approach to responsible investment ownership - also known as 'Stewardship' following the introduction of 'the Stewardship Code'. This sets out their approach to voting, dialogue with company management and any related activity. This is publicly available.
  • Publish full voting record Fund manager publishes a full record of how they vote at AGMs and EGMs. This information is publicly available.
  • Regularly lead collaborative ESG initiatives This fund manager has told us they regularly initiate or help lead industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
  • PRI signatory This fund management company has signed up to the UN backed 'Principles of Responsible Investment' initiative.

SRI / Ethical Policy

At BMO Global Asset Management, we have been a leader in the development of sustainable investment strategies for almost three decades. Responsible investment is central to our corporate identity and integral to our global investment philosophy.
 
Ethical considerations are becoming increasingly important in the mind set of many investors. In addition, there is also a growing consensus that the best long-term performance will come from those companies that take their wider ethical, environmental and social responsibilities seriously. The Fund provides an investment medium for people who do not regard financial gain as the sole criterion for investment, but look to wider issues. It seeks toinvest in UK companies offering attractive growth characteristics, avoiding investment in those that have harmful effects.
 
We conduct in-house research on each company considered for the Fund and have product-based (ethical) criteria as well as conduct-based (sustainability management assessment) criteria. Below is a summary of the criteria: 
 
Product-based Criteria:

 

  • Alcohol 
  • Gambling 
  • Nuclear power generation 
  • Oil, gas and coal reserves 
  • Pornography 
  • Tobacco 
  • Weapons

 

Conduct-based criteria:

 

  • Environment 
    • Arctic and ecologically-sensitive operations 
    • Environmental management 

 

  • Social 
    • Animal Welfare 
    • Health and safety 
    • Human rights and oppressive regimes 
    • Labour standards 

 

  • Governance 
    • Business ethics

 
The GSI team has a quarterly monitoring system to identify:
 

  • Changes to business e.g. through mergers and acquisitions  
  • Whether the criteria continues to be met by the company (ethical, environmental and social) 
  • Any controversies that may affect the company rating (e.g. mis-selling, environmental damage or corruption).

 

Resources, Affiliations & Corporate Strategies

The F&C Responsible UK Equity Growth Fund is managed by three distinct teams with the process led by the Investment Management team. The interaction between our teams is detailed in the following chart:
 

  • 1. The Responsible UK Equities Team manages the strategy using fundamental, bottom-up research to construct a portfolio of companies from the acceptable universe. Following approval for inclusion in the ethical universe the investment team is responsible for deeper investment analysis, portfolio construction and ongoing monitoring. 

 

  •  2. The GSI Team undertakes extensive research on ethical and environmental, social and governance issues for each company proposed for inclusion or actively held within the fund as outlined above. They reach a conclusion about whether a company should be included in the investable universe in conjunction with input from the Responsible Investment Advisory Council. Once a stock has been included the team is responsible for managing ongoing engagement and proxy voting.

 

  • 3. The independent external Responsible Investment Advisory Council is an external body of sustainability experts who focus on providing advice on ethical and sustainability criteria, helping the firm maintain the integrity of the standards by which the funds are run.

 
BMO Global Asset Management draws on a range of specialist ESG research sources to inform proxy voting and engagement activities. We are using Institutional Shareholder Services (ISS) for global proxy voting research and vote execution services. In addition, we are using Institutional Voting Information Service (IVIS) for supplementary advice on FTSE All-Share companies. Other relevant resources include sell-side brokers (corporate governance and sustainability research) and MSCI (ESG factors). We also consider research by broader stakeholders including NGOs such as Transparency International (anti-corruption), Oxfam and Human Rights Watch.
 
Our research is also informed by our networks that may provide briefings and publications, including the UN PRI, International Corporate Governance Network (ICGN) and the Asian Corporate Governance Association (ACGA). We may also draw on external consultants with expertise in particular areas, although presently we have no such arrangements underway. We are also part of a global asset management firm with investment professionals and other expert resources spread across the world, and we of course have access to their insight and expertise on an as needed basis.

OMW F&C Responsible UK Equity Growth Pn Ethically Balanced Pension UK Equity 15/11/2006 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "BMO (F&C) Responsible UK Equity Growth" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing.

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

FL Stewardship Managed Ethically Balanced Life UK Mixed Asset 01/11/1998
OMW EAB Old Mutual Ethical Negative Ethical Life Global Equity 13/01/2006
Pru Kames Ethical Equity Pn Ser A Negative Ethical Pension UK Equity 19/10/2008 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Kames Ethical Equity" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing. 

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Henderson ESG Integration Corporate Activity Not Set Unclassified 29/01/2016 More Info (click to view)

SRI / Ethical Overview

Henderson’s portfolio managers, sector analysts, ESG and corporate governance personnel maintain regular dialogue with companies. This dialogue allows the firm to monitor the development of companies’ businesses, including areas such as overall strategy, business planning and delivery of objectives, capital structure, proposed acquisitions or disposals, corporate responsibility and corporate governance. Henderson subscribes to research covering corporate governance and corporate responsibility issues, to supplement in-house analysis. 

Analysis is shared on internal IT systems and frequent discussion takes place between governance, ESG and sector analysts and fund managers. Electronic records of all engagement, voting and other corporate governance and corporate responsibility activities, including the rationale for voting decisions, are kept.  

Overall responsibility for monitoring company performance rests with portfolio managers. Analysts specialising in corporate governance and corporate responsibility issues work alongside portfolio managers to identify relevant issues, which are fed into our investment process, and may also form the basis for company engagement. 

Fund managers are ultimately responsible for the integration of ESG issues into investment decision making and engagement as part of their investment processes. To help facilitate this we subscribe to a wide range of specialist external ESG research to complement in-house research and engagement. This research is made directly available to all investment teams, as well as being used by the in-house Governance and Responsible Investment (GRI) team to screen for ESG issues of concern.

The GRI team is a specialist resource that supports fund managers on corporate governance issues (including voting) as well as wider environmental and social issues. They make use of a wide range of external specialist ESG research, including MSCI, EIRIS, Trucost, IVIS, RepRisk, ISS and broker research. The team work on behalf of fund managers and our clients by ensuring that ESG issues are raised prior to key company meetings and investment risk meetings. 

SRI Policies (Primary strategy in bold)

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SRI Features

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Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Responsible Ownership policy for non SRI funds This fund manager applies Responsible Ownership or 'Stewardship' policies to all or most of their investment assets. This means that active involvement (e.g. voting, dialogue) with the companies they invest in is not limited to ethical or SRI options.
  • Integrates ESG factors into all/most fund research This fund manager researches environmental, social and governance issues when deciding whether or not to invest in a company. This applies to all funds, not only those which are promoted as being 'ethical' or 'SRI themed'.
  • Vote all shares at AGMs/EGMs This fund manager always votes the shares they own at annual general meetings (and extraordinary general meetings). This is a key indicator of 'responsible share ownership' and companies taking an interest in the future of the companies they part own.
  • In house responsible ownership/voting expertise Fund managers have in-house expertise that enables them to have in-house voting guidelines, review their own shareholder voting decisions, for example.
  • Responsible Ownership/ESG a key differentiator The fund managers have said they consider this area to be a key differentiator for their business
  • UK Stewardship Code signatory
  • Publish Responsible Ownership/Stewardship report Fund manager publishes information that sets out their approach to responsible investment ownership - also known as 'Stewardship' following the introduction of 'the Stewardship Code'. This sets out their approach to voting, dialogue with company management and any related activity. This is publicly available.
  • Publish full voting record Fund manager publishes a full record of how they vote at AGMs and EGMs. This information is publicly available.
  • Review(ing) carbon/fossil fuel exposure for all funds This company has reviewed or is currently reviewing (or in other ways 'actively managing') their exposure to carbon intensive industries including (but not only) mining, oil and gas companies. This work is being carried out in the light of climate change related concerns and the company's view of its anticipated impact on the companies they invest in.
  • Regularly lead collaborative ESG initiatives This fund manager has told us they regularly initiate or help lead industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.

SRI / Ethical Policy

ESG issues are integrated into our risk reporting and fund review processes. Fund managers receive ESG investment risk reports detailing portfolio exposure to companies rated highest risk for ESG issues, as well as overall portfolio performance and any changes to company ratings. These ESG risk reports are discussed at regular fund risk review meetings. 

Resources, Affiliations & Corporate Strategies

Fund managers are ultimately responsible for the integration of ESG issues into investment decision making and engagement as part of their investment processes. They are assisted in this by the GRI team (please see above). 

Sources of ESG related data that are used to build the ESG investment risk reports include: EIRIS, MSCI, ISS, RepRisk, IVIS, CDP, TruCost, HOLT

Henderson is actively involved / member of the following initiatives: Carbon Disclosure Project (CDP), Extractive Industries Transparency Initiative (EITI), Institutional Investors Group on Climate Change (IIGCC), National Association of Pension Funds (NAPF), UN Principles of Responsible Investment (PRI), UK Sustainable Investment Forum (UKSIF), European Sustainable Investment Forum (EUROSIF), UN Environment Programme Finance Initiative (UNEP FI), Asian Corporate Governance Association (ACGA), The Investor Forum, Access to Medicines Initiative.

OMW EdenTree Amity UK Pn Ethically Balanced Pension UK Equity 16/10/2008 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "EdenTree Amity UK" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing. 

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Pru L&G Ethical Global Equity Index Pn Sustainability Themed Pension Global Equity 10/07/2011 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "L&G Ethical" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing.

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

EdenTree Amity International A Ethically Balanced OEIC/Unit Trust Global Equity 12/09/1999 More Info (click to view)

SRI / Ethical Overview

The Fund aims to achieve long term capital growth with a reasonable level of income through a diversified portfolio of international companies. The Amity International Fund seeks to invest in a portfolio of companies which make a positive contribution to society and the environment through sustainable and socially responsible practices. These Funds seek to avoid investment in certain areas such as companies which have a material involvement in alcohol, tobacco and weapon production, gambling and publication of violent or explicit materials.

 

 

SRI / themed / ethical assets under management – overview

  • Fund Size (GBP):   £221.89m as at 31/05/2017
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management:   £550m as at 31 December 2016
  • Total value of assets covered by responsible ownership policy:   100%
  • Total assets under management:   £2.5bn as at 31/05/2017

 

 

SRI Policies (Primary strategy in bold)

  • Environmental policy Has a policy which states that the fund considers environmental issues (e.g. pollution, climate change, resource management, environmental impact)
  • Health & wellbeing policies Has a policy that sets out the fund's aim to support companies that offer positive lifestyle, health or 'wellbeing' related benefits.
  • Limits exposure to carbon intensive industries Aims to reduce or limit exposure to carbon intensive industries which are considered to be major contributors to climate change. Funds vary - but this is likely to mean a fund has below average levels of investment in areas such as oil & gas, mining or airlines. 'Best in sector' companies may, however, be allowable.
  • Measures positive impacts The fund aims to have a positive effect on society and/or the environment. Fund managers of this kind actively aim to measure the impact of their investments in order to ensure they are having the desired effect.
  • Sustainability policy Considers issues relating to the sustainability agenda (e.g. resource usage, environmental impact and/or social issues such as equal opportunities, human rights and adherence to recognised codes).
  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.
  • Social policy Considers social issues (e.g. human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such as the UN Global Compact).
  • Governance policy Considers issues relating to corporate governance such as board structure, remuneration, bribery and/or corporate corruption.
  • Animal welfare policy The fund has a policy that requires specific animal welfare standards to be adopted by companies in order for them to be allowable for investment within the fund.
  • Nuclear policy Has a published policy that sets out the fund's position with regard to nuclear power. In most cases this is likely to mean avoidance of companies with significant involvement in the nuclear industry, although some funds may require absolute avoidance.
  • Animal testing policy The fund has criteria that guide when it can or can not invest in companies that are involved in testing their products on animals. This may mean the fund avoids pharmaceutical companies even where testing is required by law (for safety reasons).
  • Tobacco production avoided Does not invest in manufacturers or tobacco (or related) products. The fund, however, may invest in retailers of such products (e.g. supermarkets or hotels.)
  • Armaments manufacturers avoided Avoids companies that manufacture products intended specifically for military use. (Funds may, however, invest in manufacturers of products that are used by the military but are not specifically intended for military/defence use.)
  • Coal, oil &/or gas majors excluded This fund will not invest in the largest coal, oil and/or gas producing companies. Funds vary. Some may invest in smaller producers or companies where this is considered to be a relatively minor part of their business.
  • Climate change / GHG policy Considers climate change related issues such as greenhouse gas/carbon emissions. Strategies vary but funds that consider climate issues typically require the careful management of climate related risks (and opportunities) if they are to select a company for investment.
  • Invests in clean energy/renewables This fund invests in companies in the clean technology/renewable energy related industries. Fund strategies vary. In practice some may invest a small percentage in this area whereas others may have significant exposure to this area. Check fund literature for details.
  • Alcohol production excluded (new) This fund avoids companies that are involved in the production of alcohol. See fund literature for further information.
  • Fracking and tar sands excluded Fund avoids companies involved in fracking and tar sands - which are controversial oil and gas extraction practices
  • Gambling avoidance policy This fund avoids companies with significant involvement in the gambling industry. See fund policy for details.
  • Pornography avoidance policy This fund avoids companies that derive significant income from pornography. See fund details for further information.

SRI Features

  • RSMR Rated Fund rating agency 'Rayner Spencer Mills Research' have awarded this fund 'rated' status.
  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Eurosif transparency This fund has met the standards of the EUROSIF transparency Code. This means that they are a leading fund in terms of openness and transparency, publishing - for example - extensive information about where they invest and how they deal with companies.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • Faith friendly These funds are likely to have attributes that some faith based investors may welcome such as opposition to armaments, gambling and alcohol.
  • Strictly screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.
  • Aims to generate positive impacts This fund aims to help deliver positive social or environmental impacts or outcomes. Strategies and approaches vary. Some funds measure outcomes others do not. See fund literature for further information.
  • Available via an ISA This fund is available via a tax efficient ISA product wrapper
  • Over 50% small/mid cap More than half of this funds assets are invested in smaller or medium sized companies.

Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Responsible Ownership policy for non SRI funds This fund manager applies Responsible Ownership or 'Stewardship' policies to all or most of their investment assets. This means that active involvement (e.g. voting, dialogue) with the companies they invest in is not limited to ethical or SRI options.
  • Integrates ESG factors into all/most fund research This fund manager researches environmental, social and governance issues when deciding whether or not to invest in a company. This applies to all funds, not only those which are promoted as being 'ethical' or 'SRI themed'.
  • Vote all shares at AGMs/EGMs This fund manager always votes the shares they own at annual general meetings (and extraordinary general meetings). This is a key indicator of 'responsible share ownership' and companies taking an interest in the future of the companies they part own.
  • In house responsible ownership/voting expertise Fund managers have in-house expertise that enables them to have in-house voting guidelines, review their own shareholder voting decisions, for example.
  • Responsible Ownership/ESG a key differentiator The fund managers have said they consider this area to be a key differentiator for their business
  • UK Stewardship Code signatory
  • Publish Responsible Ownership/Stewardship report Fund manager publishes information that sets out their approach to responsible investment ownership - also known as 'Stewardship' following the introduction of 'the Stewardship Code'. This sets out their approach to voting, dialogue with company management and any related activity. This is publicly available.
  • Publish full voting record Fund manager publishes a full record of how they vote at AGMs and EGMs. This information is publicly available.
  • Review(ing) carbon/fossil fuel exposure for all funds This company has reviewed or is currently reviewing (or in other ways 'actively managing') their exposure to carbon intensive industries including (but not only) mining, oil and gas companies. This work is being carried out in the light of climate change related concerns and the company's view of its anticipated impact on the companies they invest in.
  • Regularly lead collaborative ESG initiatives This fund manager has told us they regularly initiate or help lead industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
  • PRI signatory This fund management company has signed up to the UN backed 'Principles of Responsible Investment' initiative.
  • Boutique/specialist fund manager This fund management company specialises in sustainable, responsible, ethical, ESG or responsible ownership related investment. This is central to their corporate strategy and influences all investment decision making. Note - different strategies may apply to different fund options. Check fund manager supplied links for further information.

SRI / Ethical Policy

Ethical Approach

 

EIM is a pioneer of Socially Responsible Investment (SRI) and launched its first SRI investment fund in 1988. We utilise both negative and positive screening within the investment process. In respect of negative screening, we avoid companies whose activities derive in excess of 10% of their pre-tax profit or turnover from alcohol production, gambling, pornographic and violent material, tobacco production, strategic armaments, animal testing and intensive farming.

 

We look for the positive aspects in potential investments to ensure we invest in companies that are making a positive contribution to society and the environment. These may cover good business and corporate governance practices and community relations. We also look for companies promoting good standards of education, environmental management and healthcare. We look favourably upon companies which promote human rights, good labour relations and urban regeneration. As well as our own in-house research (including special thematic reports) we use a range of sources, including independent data from Risk Metrics in respect of Environmental, Social and Governance (ESG) issues.

 

EdenTree employs both negative and positive screening to its stock selection process and engages with companies before, during and after investing. This process is integrated into our overall investment management process and we use the following ‘screens’ when considering the suitability of an investment.

 

Positive Screening

 

Our positive screening approach centres on what we define as the ‘Nine Pillars’ of responsible investing.  We are particularly focused on areas that provide the necessities of life such as healthcare, water, education and housing, or products and services that are sourced ethically and produced sustainably. We also favour ‘solutions-focused’ companies that are leading the way in technologies that may help solve some of the world’s most challenging problems, such as climate change, alternative energy or water conservation. In addition, we focus on business behaviour, expecting the companies we invest in to have a well-managed policy for promoting human rights, environmental protection, labour rights and business ethics.

 

Negative Screening

 

Our negative screens include alcohol production, gambling operations, pornographic or violent material or weapon production. We also consider animal testing, oppressive regimes and intensive farming in our criteria when evaluating a company.

 

Amity Panel Review

 

The Amity Panel meet with the fund management and research team 3 or 4 times each year to review the Amity Fund portfolios, the recent investment decisions and to discuss the latest Socially Responsible research and trends. The purpose of the Amity Socially Responsible Investment Advisory Panel is to:-

 

• Help to ensure that the EdenTree Amity Range of Funds meet the stated aims and objectives.

• Provide advice in the formulation of policy in the light of changing social and environmental issues.

 

The Amity Panel will provide advice to the SRI team in a number of ways

 

• Advising on emerging issues or topics relevant to SRI criteria.

• Provide advice and guidance on individual companies or sectors.

• Provide advice and guidance on engagement work.

 

The independent panel is made up of a number of industry experts, including:

 

• The Right Reverend Dr Nigel Peyton – The Bishop of Brechin

• William Oulton – Global Head of Responsible Investments, First State Investments

• George Prescott – ex Ecclesiastical Deputy CEO and CFO, former ABI board member

• Helen Crosby – Sustainability Expert.

• Julie McDowell – Independent Consultant

 

The SRI team is responsible for ESG research and advising Fund Managers. The team has access to a number of external resources for decision making. We have appointed Sustainalytics as our ESG data provider which serves as a starting point for our ESG research. This is complemented by NGO sources, company reports, market news and SRI initiatives. The SRI team also directly meets with companies to discuss sustainability and governance issues.

Resources, Affiliations & Corporate Strategies

There is an in-house team responsible for the execution of our SRI policy; they focus on research, engagement and proxy voting.

 

 All UK proxy voting decisions (includes Guernsey, Jersey and Isle of Man) are taken and executed in-house, signed off by a Fund Manager. We take IVIS (Institutional Voting Information Service) provided by the Investment Association to inform thinking. We have appointed Glass Lewis & Co. to be our sole discretionary research and proxy execution provider in all jurisdictions other than the United Kingdom (including Guernsey, Jersey and the Isle of Man), delegating to it the responsibility for the instruction and execution of international proxy voting at all general and special international company meetings.

 

The team shares responsibility for company engagement, whether it is in house or in partnership with SRI organisations or other investors.

Stewart Investors Worldwide Sustainability A Inc GBP Acc Sustainability Themed OEIC/Unit Trust Global Equity 01/11/2012 More Info (click to view)

SRI / Ethical Overview

The Stewart Investors sustainability portfolios aim to generate long-term, risk-adjusted returns for clients by investing in companies which are positioned to benefit from, and contribute to, the sustainable development of the countries in which they operate. Investment decisions around sustainability are based on three key points: Identifying companies who manage sustainability risks and opportunities and those with a positive sustainability impact; Inclusion of environmental, social and corporate governance matters in investment research; Engaging directly with companies on identified sustainability issues. At the heart of the Stewart Investors philosophy is the principle of stewardship. We are active owners and stewards of the companies in which we invest.

 

Our emphasis is on sustainable development and not ‘green’, ‘clean tech’ or ‘ethical’ investing and while we do no formal negative screening, we are unlikely to invest in companies operating in high risk sectors, because of their poor long-term sustainable development positioning.

 

SRI / themed / ethical assets under management – overview

 

  • Fund Size (GBP):   £370 million as at 31 March 2017
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management:   £13 billion managed by the Stewart Investors Sustainable Funds Group
  • Total value of assets covered by responsible ownership policy:   n/a
  • Total assets under management:   £23.8 billion as at 31 March 2017

 

SRI Policies (Primary strategy in bold)

  • Sustainability policy Considers issues relating to the sustainability agenda (e.g. resource usage, environmental impact and/or social issues such as equal opportunities, human rights and adherence to recognised codes).

SRI Features

  • RSMR Rated Fund rating agency 'Rayner Spencer Mills Research' have awarded this fund 'rated' status.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Aims to generate positive impacts This fund aims to help deliver positive social or environmental impacts or outcomes. Strategies and approaches vary. Some funds measure outcomes others do not. See fund literature for further information.
  • Available via an ISA This fund is available via a tax efficient ISA product wrapper

Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Integrates ESG factors into all/most fund research This fund manager researches environmental, social and governance issues when deciding whether or not to invest in a company. This applies to all funds, not only those which are promoted as being 'ethical' or 'SRI themed'.
  • Vote all shares at AGMs/EGMs This fund manager always votes the shares they own at annual general meetings (and extraordinary general meetings). This is a key indicator of 'responsible share ownership' and companies taking an interest in the future of the companies they part own.
  • PRI signatory This fund management company has signed up to the UN backed 'Principles of Responsible Investment' initiative.

SRI / Ethical Policy

he principle of stewardship is central to Stewart Investors’ investment philosophy and has been since 1988. All the Stewart Investors’ investment strategies strive to integrate sustainability considerations into every investment decision. It is not treated as an optional bolt-on. The Sustainable Funds Group within the wider investment team takes this one step further by focusing on long-term sustainable development as a key driver of the investment process. Sustainability is an integral component of the investment process, and is viewed as a driver of returns in common with consideration of other investment factors.

 

We believe our job is to entrust our clients’ capital to good quality companies with strong management teams and sound long-term growth prospects.

 

Each investment is a decision to purchase not a piece of paper or an electronic Bloomberg ticker, but part of a real business with all the rights and responsibilities that go with this ‘share’ of the ownership of the company. We take these rights and responsibilities seriously. We also believe the way we behave as investment professionals and the role we play in the broader industry are important for our own sustainability.

We seek to invest only in good quality companies. We focus on the quality of management, franchise and financials. By analysing the sustainable development performance and positioning of companies we can better measure less tangible elements of quality and identify less obvious risks. We invest in those companies we believe are particularly well positioned to deliver positive long-term returns in the face of the huge sustainable development challenges facing all countries today. Our emphasis is on sustainable development and not ‘green’, ‘clean tech’ or ‘ethical’ investing.

 

We are long-term investors. We strive to make investment decisions with a minimum five-year time horizon. We have an absolute return mind-set, defining risk as losing client money, rather than deviation from any benchmark index. We focus as much on the potential downside of our investment decisions as on the anticipated upside. The identification of long-term sustainable development risks thus becomes an extremely important way of managing risk. In addition, our willingness to differ substantially from index weightings, both country and company, means we are not obliged to be invested in any company or country if we have particular sustainability concerns.

 

 

Resources, Affiliations & Corporate Strategies

The emphasis is very much on the Stewart Investors team of analysts to identify and analyse companies, and sustainability and investment issues. The primary source of sustainability related information is one-on-one meetings with senior management. We undertake approximately 1300 such meetings each year across Stewart Investors. We are particularly interested in companies which embrace the underlying spirit of sustainability, rather than simply taking a compliance driven, box-ticking approach. Assessing the attitude and priorities of senior management is crucial.

 

We augment internal research with the use of external research. We are now able to drive and tender research to a range of researchers, from investment banks to non-government organisations (NGOs) and independent consultants that we believe will contribute to and enhance our investment decision making over time. Some themes that we have tendered include:

 

  • Diversity in corporate Asia;
  • Sales practices of Asian pharmaceuticals;
  • GEM leaders in packaging solutions;
  • US remuneration practices;
  • ESG leaders in mining; and
  • ·Fossil fuel dependent capital equipment companies.

 

Our current and previous tenders can be viewed on our website. http://www.stewartinvestors.com/en/research-tenders/

OMW EdenTree Amity International Pn Ethically Balanced Pension Global Equity 16/10/2008 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "EdenTree Amity International" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing.

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aberdeen Multi Manager Ethical Portfolio Acc Ethically Balanced OEIC/Unit Trust Global Equity 12/02/2002
NextEnergy Solar Fund Limited Red Ord Npv Environmentally Themed Investment Trust UK Equity 24/04/2014
OMW Premier Ethical A Ethically Balanced Life UK Equity 08/06/2006
Blackrock LGIM Ethical Global Equity Index P Sustainability Themed Life Global Equity 29/03/2010
Pru Royal London Sustainable Leaders S2 Sustainability Themed Life UK Equity 25/01/2010
Royal London Sustainable Leaders Trust Sustainability Themed OEIC/Unit Trust Global Equity 28/05/1990 More Info (click to view)

SRI / Ethical Overview

RLAM’s investment philosophy is to take the principle of sustainability and apply it across different geographies and asset classes. We define sustainable investing as investing in companies that have a net positive benefit to society either through the products and services they offer or in the way they conduct their business. In doing this we support companies having a positive impact on society whilst at the same time growing investor capital.

 

Although the Trust adopts positive screening as its primary method of investment selection, it also offers reassurance from a number of areas of avoidance.

 

SRI / themed / ethical assets under management – overview

 

  • Fund Size (GBP):   £551.01 as of 31 May 2017.
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management:    £11,793.22m as of 31 May 2017.
  • Total value of assets covered by responsible ownership policy:   £1,416.04m as of 31 May 2017        (Please note that this figure only includes our sustainable range, however, RLAM’s Responsible Investment Policy will detail how this is an over-arching approach across most of the firm’s assets).
  • Total assets under management:   £104,507.32m as of 31 May 2017.

 

SRI Policies (Primary strategy in bold)

  • Environmental policy Has a policy which states that the fund considers environmental issues (e.g. pollution, climate change, resource management, environmental impact)
  • Limits exposure to carbon intensive industries Aims to reduce or limit exposure to carbon intensive industries which are considered to be major contributors to climate change. Funds vary - but this is likely to mean a fund has below average levels of investment in areas such as oil & gas, mining or airlines. 'Best in sector' companies may, however, be allowable.
  • Measures positive impacts The fund aims to have a positive effect on society and/or the environment. Fund managers of this kind actively aim to measure the impact of their investments in order to ensure they are having the desired effect.
  • Sustainability policy Considers issues relating to the sustainability agenda (e.g. resource usage, environmental impact and/or social issues such as equal opportunities, human rights and adherence to recognised codes).
  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.
  • Governance policy Considers issues relating to corporate governance such as board structure, remuneration, bribery and/or corporate corruption.
  • Nuclear policy Has a published policy that sets out the fund's position with regard to nuclear power. In most cases this is likely to mean avoidance of companies with significant involvement in the nuclear industry, although some funds may require absolute avoidance.
  • Animal testing policy The fund has criteria that guide when it can or can not invest in companies that are involved in testing their products on animals. This may mean the fund avoids pharmaceutical companies even where testing is required by law (for safety reasons).
  • Tobacco production avoided Does not invest in manufacturers or tobacco (or related) products. The fund, however, may invest in retailers of such products (e.g. supermarkets or hotels.)
  • Armaments manufacturers avoided Avoids companies that manufacture products intended specifically for military use. (Funds may, however, invest in manufacturers of products that are used by the military but are not specifically intended for military/defence use.)
  • Alcohol production excluded (new) This fund avoids companies that are involved in the production of alcohol. See fund literature for further information.
  • Fracking and tar sands excluded Fund avoids companies involved in fracking and tar sands - which are controversial oil and gas extraction practices
  • Gambling avoidance policy This fund avoids companies with significant involvement in the gambling industry. See fund policy for details.
  • Pornography avoidance policy This fund avoids companies that derive significant income from pornography. See fund details for further information.

SRI Features

  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Balances company 'pros and cons'/best in sector This fund manager will look at both the 'positive' things companies do and the 'negative' things they do. They will make balanced judgements, in line with their published strategy, before deciding whether or not to invest. Such funds often invest in the best/most ethical companies across most industries, rather than excluding entire sectors. The fund manager may couple this with 'responsible engagement' activity, where they aim to encourage better, more responsible business practices.
  • Over 50% large cap This fund invests more than half of its money into very large companies. This will typically mean that the market capitalisation (or value) of the companies they hold will be over £5 to £10 billion.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • Aims to generate positive impacts This fund aims to help deliver positive social or environmental impacts or outcomes. Strategies and approaches vary. Some funds measure outcomes others do not. See fund literature for further information.
  • Available via an ISA This fund is available via a tax efficient ISA product wrapper

Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Vote all shares at AGMs/EGMs This fund manager always votes the shares they own at annual general meetings (and extraordinary general meetings). This is a key indicator of 'responsible share ownership' and companies taking an interest in the future of the companies they part own.
  • In house responsible ownership/voting expertise Fund managers have in-house expertise that enables them to have in-house voting guidelines, review their own shareholder voting decisions, for example.
  • UK Stewardship Code signatory
  • Publish Responsible Ownership/Stewardship report Fund manager publishes information that sets out their approach to responsible investment ownership - also known as 'Stewardship' following the introduction of 'the Stewardship Code'. This sets out their approach to voting, dialogue with company management and any related activity. This is publicly available.
  • Publish full voting record Fund manager publishes a full record of how they vote at AGMs and EGMs. This information is publicly available.
  • Regularly lead collaborative ESG initiatives This fund manager has told us they regularly initiate or help lead industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
  • PRI signatory This fund management company has signed up to the UN backed 'Principles of Responsible Investment' initiative.

SRI / Ethical Policy

Although the Trust adopts positive screening as its primary method of investment selection, it also offers reassurance from a number of areas of avoidance. In particular the portfolio avoids investment in any company that is or is likely to be exposed to:

 

  • Human rights abuses
  • Tobacco and armaments manufacture
  • Products which involve experiments on animals, except for those conducted for the benefit of human or animal health
  • The generation of nuclear power

 

The Trust also avoids investments in companies which derive a material proportion (Over 10%) of their business from:

 

  • Animal fur products
  • Pornography
  • Irresponsible gambling
  • Irresponsible drinking
  • Worker exploitation or exploitative consumer practices.

 

If a company breaches this threshold, then it is likely that that company’s involvement in that excluded sector is a noteworthy part of their business and strategy.

 

Also, this threshold is deemed to be realistic and appropriate in terms of assessing a company, given that it may not be possible to always pinpoint the exact turnover derived from an excluded activity. This threshold ensures that a minimum of 90% of each holding meets the ethical criteria.

 

Finally, the Trust avoids investments in companies that have unacceptable corporate governance and mismanage social, ethical and environmental risk.

Resources, Affiliations & Corporate Strategies

The core of our process is the team of five ESG investment specialists. Although each team member is capable of working across the spectrum of financial and ESG analysis required to enact our investment process, there are specialisms. We have two fund managers, one corporate governance specialist and two analysts capable of researching companies on a global basis across the spectrum of financial and ESG issues. The team has a high level of experience and have honed and improved the process over the 14 years since it was implemented. We have a very disciplined approach to investing, based around clear principles and a framework to ensure that that individually and as a team we make consistently high quality investment decisions on behalf of our clients.

 

An external advisory committee supplements this internal expertise. Not only do they provide external, independent oversight as to the adherence to the principles and ethos of the investment process, they are also invaluable in adding to the knowledge base, which exists internally. The advisory committee consists of members from the corporate, academic, investment and charities arenas.

 

We supplement this resource with the effective use of systems. Starting with a global universe of over 18,000 companies it is important we focus our work on those areas most likely to yield strong investment ideas. It particular we use MSCI to identity companies with strong ESG performance, and CSFB Holt to identify companies with inherent value creation and strong competitive advantage. Both these tools allow us to identify where and how best to use our internal resource. At this point we will conduct our own analysis as to the suitability of a potential investment.

 

It is worth emphasising that, whether primary inputs have been internally derived or otherwise, we will never delegate the final decision as to whether a security is selected in our portfolios, given our very different philosophical approach to valuation.

 

RLAM Voting Policy:   https://www.rlam.co.uk/Documents-RLAM/Sustainable%20Investing/2017%20RLAM%20Voting%20Policy.pdf

 

Zurich Stewart Investors World Wide Sustainability Pn CS1 Sustainability Themed Pension Global Equity 16/11/2015 More Info (click to view)

SRI / Ethical Overview

See OEIC entry for fund information

SRI Policies (Primary strategy in bold)

  • Sustainability policy Considers issues relating to the sustainability agenda (e.g. resource usage, environmental impact and/or social issues such as equal opportunities, human rights and adherence to recognised codes).

SRI Features

-

Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

AXA Wealth AB Ethical Retirement 2005-2007 Pn Core Range Unclassified Pension Global Mixed Asset 02/01/2013
Aviva Royal London Sustainable World Trust S4 Sustainability Themed Life Global Mixed Asset 22/11/2010
FL Jupiter Ecology AL Environmentally Themed Life Global Equity 23/07/2006
Alquity Future World M USD Social Themed SICAV/Offshore* Global Equity 04/06/2014
SLFC (Citibank) Green Pn Cap Ethically Balanced Pension Global Equity 31/10/1997
Zurich Jupiter Ecology CS1 Pn Environmentally Themed Pension Global Equity 26/07/2017
FL Jupiter Ecology EP S1 Environmentally Themed Pension Global Equity 01/02/2007 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Jupiter Ecology" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing.

SRI Policies (Primary strategy in bold)

  • Invests in clean energy/renewables This fund invests in companies in the clean technology/renewable energy related industries. Fund strategies vary. In practice some may invest a small percentage in this area whereas others may have significant exposure to this area. Check fund literature for details.

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Alliance Trust UK Ethical Pn S2 Negative Ethical Pension UK Equity 09/05/1999
SJP Ethical Pn Acc Ethically Balanced Pension Global Equity 01/11/1998
OMW EdenTree Amity International Ethically Balanced Life Global Equity 16/10/2008
Syncona Ltd Social Themed Investment Trust Global Hedge 25/10/2012 More Info (click to view)

SRI / Ethical Overview

SRI Policies (Primary strategy in bold)

  • Health & wellbeing policies Has a policy that sets out the fund's aim to support companies that offer positive lifestyle, health or 'wellbeing' related benefits.

SRI Features

-

Corporate Activity

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

CF Drygate Unclassified OEIC/Unit Trust Global Mixed Asset 03/03/2003
Aegon Kames Ethical Equity Pn AOR Negative Ethical Pension UK Equity 15/10/2014 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Kames Ethical Equity" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing.

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Alliance Trust Sustainable Future Defensive Managed S4 Sustainability Themed Life Global Mixed Asset 17/11/2014
Aviva Jupiter Ecology S4 Environmentally Themed Life Global Equity 01/01/1970
Royal London Cash Plus M Inc Negative Ethical OEIC/Unit Trust UK Not set 19/06/2011 More Info (click to view)

SRI / Ethical Overview

The Fund invests mainly in cash, deposits, money market instruments and short dated government securities, which meet predefined ethical criteria. The policy of the Fund considers all of the following ethical issues: armaments and tobacco.

 

SRI / themed / ethical assets under management – overview

 

  • Fund Size (GBP):   £4,550.22m as of 31 May 2017.
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management:   £11,793.22m as of 31 May 2017.
  • Total value of assets covered by responsible ownership policy:   £1,416.04m as of 31 May 2017      (Please note that this figure only includes our sustainable range, however, RLAM’s Responsible Investment Policy will detail how this is an over-arching approach across most of the firm’s assets).
  • Total assets under management:   £104,507.32m as of 31 May 2017.

 

 

SRI Policies (Primary strategy in bold)

  • Tobacco production avoided Does not invest in manufacturers or tobacco (or related) products. The fund, however, may invest in retailers of such products (e.g. supermarkets or hotels.)
  • Armaments manufacturers avoided Avoids companies that manufacture products intended specifically for military use. (Funds may, however, invest in manufacturers of products that are used by the military but are not specifically intended for military/defence use.)
  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Available via an ISA This fund is available via a tax efficient ISA product wrapper

Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Vote all shares at AGMs/EGMs This fund manager always votes the shares they own at annual general meetings (and extraordinary general meetings). This is a key indicator of 'responsible share ownership' and companies taking an interest in the future of the companies they part own.
  • In house responsible ownership/voting expertise Fund managers have in-house expertise that enables them to have in-house voting guidelines, review their own shareholder voting decisions, for example.
  • UK Stewardship Code signatory
  • Publish Responsible Ownership/Stewardship report Fund manager publishes information that sets out their approach to responsible investment ownership - also known as 'Stewardship' following the introduction of 'the Stewardship Code'. This sets out their approach to voting, dialogue with company management and any related activity. This is publicly available.
  • Publish full voting record Fund manager publishes a full record of how they vote at AGMs and EGMs. This information is publicly available.
  • Regularly lead collaborative ESG initiatives This fund manager has told us they regularly initiate or help lead industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
  • PRI signatory This fund management company has signed up to the UN backed 'Principles of Responsible Investment' initiative.

SRI / Ethical Policy

Our ethical investment process begins with screening for eligible investments, which is conducted by specialist independent consultancy EIRiS (Ethical Investment Research Services). With over 25 years’ experience, EIRiS is a leading provider of research into the environmental, social and governance (ESG) and ethical performance of companies. RLAM’s ethical framework combines the avoidance of companies involved in excluded activities with the identification of best of breed companies in permitted sectors.

 

Companies that generate over 10% of their turnover from either one or a combination of the following categories are excluded:

 

  • Armaments:  manufacturing armaments or nuclear weapons, or associated strategic products
  • Tobacco:       growing, processing or selling tobacco products

 

If a company breaches this threshold, then it is likely that that company’s involvement in that excluded sector is a noteworthy part of their business and strategy.

 

Also, this threshold is deemed to be realistic and appropriate in terms of assessing a company, given that it may not be possible to always pinpoint the exact turnover derived from an excluded activity. This threshold ensures that a minimum of 90% of each holding meets the ethical criteria.

 

There is no static list of firms and organisations eligible for investment by the Fund.  The ethical criteria screening process is ongoing and implemented pre-trade as part of the rigorous RLAM in-house credit analysis process coupled with independent ethical screening of issuing companies (and other companies that we request adhoc) carried out by the EIRiS. As per all of RLAM’s unit funds, weekly the Fund managers will sign off on the portfolio construction certifying that it adheres to the investment and borrowing powers as set out in the prospectus, and the Royal London Unit Trust Managers (RLUTM) Executive Committee will review the ethical criteria themselves on a quarterly basis.

 

 

Resources, Affiliations & Corporate Strategies

Overview of resources, affiliations and corporate strategies:

(e.g. What inhouse/external research resources are employed? What is the fund manager’s role? Who does what? What external organisations do you subcontract to or work alongside?)

                                                                                                                                                                               

As previously outlined, our ethical investment process screening is conducted by specialist independent consultancy EIRiS (Ethical Investment Research Services). With over 25 years’ experience, EIRiS is a leading provider of research into the environmental, social and governance (ESG) and ethical performance of companies.

 

RLAM monitor the ratings of all of the institutions we lend to on a real-time basis by subscribing to Standard & Poor’s, Moody’s and Fitch’s online ratings services. RLAM is notified immediately of any credit change, ensuring the Funds maintain the highest credit quality. Research for government bonds is conducted internally within the Government Bond team. As value investors, we emphasize the importance of research and believe that individual stock selection will be the largest and most consistent contributor within the Funds. The close working relationship between the Government Bond team and the rest of the Fixed Income team is central to the research process.

 

Due to the unique nature of these Funds, company visits are not crucial to the process. The majority of the Funds’ assets are invested in money market instruments. Decisions regarding which institutions to invest with are governed by several criteria, including credit ratings as determined by the three major credit rating houses.

 

RLAM Voting Policy:   https://www.rlam.co.uk/Documents-RLAM/Sustainable%20Investing/2017%20RLAM%20Voting%20Policy.pdf

 

 

OMW Jupiter Ecology Environmentally Themed Life Global Equity 23/02/2007
L&G F&C Responsible UK Equity Income Pn G25 Ethically Balanced Pension UK Equity Income 17/04/2006 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "BMO (F&C) Responsible UK Income" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing.

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

FL MyM Liontrust Sustainable Future UK Growth Pn Sustainability Themed Pension UK Equity 27/04/2017 More Info (click to view)

SRI / Ethical Overview

Underlying Fund - Liontrust Sustainable Future UK Growth, managed by Peter Michaelis. See entry for further information

SRI Policies (Primary strategy in bold)

  • Alcohol production excluded (new) This fund avoids companies that are involved in the production of alcohol. See fund literature for further information.

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Kames Ethical Corporate Bond Pn S6 Negative Ethical Pension Global Fixed Interest 28/09/2008 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Kames Ethical Corporate Bond" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing.

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Royal London Sustainable Leaders Trust S4 Sustainability Themed Life UK Equity 27/11/2007
FL Jupiter Ecology XP 2 Environmentally Themed Pension Global Equity 02/01/2008 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Jupiter Ecology" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing.

SRI Policies (Primary strategy in bold)

  • Invests in clean energy/renewables This fund invests in companies in the clean technology/renewable energy related industries. Fund strategies vary. In practice some may invest a small percentage in this area whereas others may have significant exposure to this area. Check fund literature for details.

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

SIP Jupiter Ecology Environmentally Themed Pension Global Equity 12/01/2009 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Jupiter Ecology" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "OEIC" Product listing. 

SRI Policies (Primary strategy in bold)

  • Invests in clean energy/renewables This fund invests in companies in the clean technology/renewable energy related industries. Fund strategies vary. In practice some may invest a small percentage in this area whereas others may have significant exposure to this area. Check fund literature for details.

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Old Mutual Ethical A Acc Negative Ethical OEIC/Unit Trust Global Equity 22/09/2005 More Info (click to view)

SRI / Ethical Overview

The fund is a long-only global equity portfolio with focus on sustainable investment and ethical overlay. Sustainable investment (SI), for the team at Quilter Cheviot, identifies companies around the world that provide solutions to the economic and environmental challenges of a cleaner and more efficient economy – delivering more with less for a fast growing population with a finite supply of resources, and within a carbon constrained environment.

SI is different from ethical investment, which just avoids investing in companies based on negative screening (e.g. tobacco or weapons). The fund strategy complies with the ethical policy- it does not invest in companies directly involved in tobacco, alcohol, gambling, armaments, pornography, nuclear power generation, banks, factory farming or animal testing.  The final portfolio is suitable for both ethical and sustainable investors, while keeping in mind that sustainable investment is not the same as ethical investment. 

The funds’ ethical screening is carried out by an independent third party research specialist, www.ethicalscreening.co.uk. The focus is on mid and large-cap equities and we do not invest in blue-sky type companies.  The strategy tends to focus on established business models and cash generative companies. Security selection is focused across four investment themes: low carbon energy, food, resources and water.  The investment process is centralised and final investment oversight is provided by the Chief Investment Strategist. The fund managers leverage from the in-house investment expertise of investment committees and analyst teams.

 

 

SRI / themed / ethical assets under management – overview

 

  • Fund Size (GBP):   £122.2 million as at 31 May 2017
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management:   Circa £214m as at 31 May 2017.

This includes the Climate Assets Fund and discretionary mandates for private clients and charities based on Quilter Cheviot’s sustainable investment strategy. 

Claudia Quiroz also manages segregated portfolios on behalf of private clients, pensions and charities with a focus on sustainable and ethical investment.

  • Total value of assets covered by responsible ownership policy:   All
  • Total assets under management:    £34,480 million as at 31 March 2017 for the firm across all asset classes (including non-ethical).

 

SRI Policies (Primary strategy in bold)

  • Environmental policy Has a policy which states that the fund considers environmental issues (e.g. pollution, climate change, resource management, environmental impact)
  • Health & wellbeing policies Has a policy that sets out the fund's aim to support companies that offer positive lifestyle, health or 'wellbeing' related benefits.
  • Limits exposure to carbon intensive industries Aims to reduce or limit exposure to carbon intensive industries which are considered to be major contributors to climate change. Funds vary - but this is likely to mean a fund has below average levels of investment in areas such as oil & gas, mining or airlines. 'Best in sector' companies may, however, be allowable.
  • Measures positive impacts The fund aims to have a positive effect on society and/or the environment. Fund managers of this kind actively aim to measure the impact of their investments in order to ensure they are having the desired effect.
  • Sustainability policy Considers issues relating to the sustainability agenda (e.g. resource usage, environmental impact and/or social issues such as equal opportunities, human rights and adherence to recognised codes).
  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.
  • Governance policy Considers issues relating to corporate governance such as board structure, remuneration, bribery and/or corporate corruption.
  • Animal welfare policy The fund has a policy that requires specific animal welfare standards to be adopted by companies in order for them to be allowable for investment within the fund.
  • Nuclear policy Has a published policy that sets out the fund's position with regard to nuclear power. In most cases this is likely to mean avoidance of companies with significant involvement in the nuclear industry, although some funds may require absolute avoidance.
  • Animal testing policy The fund has criteria that guide when it can or can not invest in companies that are involved in testing their products on animals. This may mean the fund avoids pharmaceutical companies even where testing is required by law (for safety reasons).
  • Tobacco production avoided Does not invest in manufacturers or tobacco (or related) products. The fund, however, may invest in retailers of such products (e.g. supermarkets or hotels.)
  • Armaments manufacturers avoided