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Fund EcoMarket

the sustainable, responsible and ethical investment information hub

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Print Fund Name SRI Style Product Region Asset Type Launch Date More info
Aviva F&C Responsible UK Equity Income Pn S6 Ethically Balanced Pension UK Equity Income 28/09/2008 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

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

FNW F&C Responsible UK Income Ethically Balanced Life UK Equity Income 20/07/2006
FNW Kames Ethical Cautious Managed Negative Ethical Life UK Mixed Asset 05/06/2007
Aviva Jupiter Ecology S4 Environmentally Themed Life Global Equity 01/01/1970
Epworth Affirmative Corporate Bond Faith Based OEIC/Unit Trust UK Fixed Interest 30/09/2009
Zurich Henderson Global Care Growth G4 AL Sustainability Themed Life Global Equity 29/01/2001
Aviva Alliance Trust Sustainable Future UK Growth Pn S2 Sustainability Themed Pension UK Equity 05/04/2001 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Alliance Trust Sustainable Future UK 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)

  • 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

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Investors Responsible Ownership Corporate Activity Not Set Unclassified 01/01/1970 More Info (click to view)

SRI / Ethical Overview

Aviva engage on all equity and mixed assets in all geographic regions.

SRI Policies (Primary strategy in bold)

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SRI Features

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Corporate Activity

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Alliance Trust Sustainable Future Corporate Bond Pn S2 Sustainability Themed Pension Europe >50% UK Fixed Interest 05/04/2001 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Alliance Trust Sustainable Future 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)

  • 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

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

SWIS Ethical Ethically Balanced Life Global Equity 31/10/2000
Aviva Alliance Trust UK Ethical Pn S2 Negative Ethical Pension UK Equity 09/05/1999
Jupiter Responsible Ownership Corporate Activity Not Set Unclassified 01/03/2013 More Info (click to view)

SRI / Ethical Overview

Jupiter engage on all equity and mixed assets in all geographic regions.

SRI Policies (Primary strategy in bold)

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SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

AXA Ethical Distribution Ret Acc Negative Ethical OEIC/Unit Trust UK Mixed Asset 24/11/2008
FL Stewardship Corporate Bond Ethically Balanced Life UK Fixed Interest 04/12/2007
Royal London Sustainable Diversified Sustainability Themed OEIC/Unit Trust Global Mixed Asset 23/07/2009 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):  £416.11m 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.
  • 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.)
  • 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

he 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

 

Charity Assets Trust Acc Ethically Balanced OEIC/Unit Trust Global Mixed Asset 08/03/2012
EdenTree Amity European A Ethically Balanced OEIC/Unit Trust Europe Ex-UK Equity 12/09/1999 More Info (click to view)

SRI / Ethical Overview

The Amity European Fund aims to achieve long term capital growth with a reasonable level of income primarily through a diversified portfolio of European companies. The Amity European 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):   £87.37m 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.

OMW EdenTree Amity European Ethically Balanced Life Europe Ex-UK Equity 16/10/2008
FL Conscience (xNM) Ethically Balanced Life UK Equity 31/08/1987
Stewart Investors Global Emerging Markets Sustainability A GBP Acc Sustainability Themed OEIC/Unit Trust Emerging Markets Equity 07/04/2009 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):   £388 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

The 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/

Aviva Alliance Trust Sustainable Future Cautious Managed Pn S6 Sustainability Themed Pension Global Mixed Asset 17/11/2014
FL Ethical Distribution AP 1 Negative Ethical Pension UK Mixed Asset 04/05/1998 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "AXA Ethical Distribution" 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

ReAssure HL Global Socially Responsible Pn 1 Unclassified Pension Global Equity 22/08/2004
Aviva Royal London Select Portfolio (20-60% Shares) Sustainability Themed Life Europe >50% UK Mixed Asset 05/04/2006
Aviva Jupiter Ecology Pn S6 Environmentally Themed Pension Global Equity 06/04/2008 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

OMW Hendersons Global Care Growth Sustainability Themed Life Global Equity 22/07/2012
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

Cler Med Evergreen Pn Ethically Balanced Pension Global Equity 01/03/1990
Trading Emissions PLC Environmentally Themed Investment Trust Global Equity 24/04/2001
Zurich Kames Ethical Equity ZP Negative Ethical Pension UK Equity 30/07/2006 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

OMW Aberdeen Ethical World Equity Ethically Balanced Life Global Equity 27/06/2006
Trojan Ethical Income I Acc Unclassified OEIC/Unit Trust UK Equity Income 06/01/2016 More Info (click to view)

SRI / Ethical Overview

The investment objective of the Trojan Ethical Income Fund is to provide income with the potential for capital growth in the medium term. The Trojan Ethical Income Fund is a UK equity income fund, managed with the same investment philosophy and approach as the Trojan Income Fund, however the Fund will invest in accordance with the parameters of its ethical investment criteria, which consider ethical issues in relation to fossil fuels, pornography, tobacco and certain types of armaments. We have also proposed extending the ethical criteria, which would restrict investments related to alcohol, high interest rate lending and gambling. The Fund delivered a yield of 3.3% in its first year.

 

SRI / themed / ethical assets under management – overview

  • Fund Size (GBP): £57 m
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management: £57 m
  • Total value of assets covered by responsible ownership policy: £9,472m
  • Total assets under management: £9,472m

(All data as at 31st March 2017, unless stated otherwise)

 

 

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.
  • 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.
  • Fracking and tar sands excluded Fund avoids companies involved in fracking and tar sands - which are controversial oil and gas extraction practices
  • Pornography avoidance policy This fund avoids companies that derive significant income from pornography. See fund details for further information.

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.
  • 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.
  • 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.
  • Limited/few ethical exclusions This fund avoids companies based on limited list of ethical exclusions (relative to other ethical funds)
  • 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.
  • 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

The present ethical investment criteria mean that the Sub-fund will not invest in any organisation which:

Armaments - (a) generates more than 10% of its total turnover from strategic military supplies relating to conventional weapons and/or (b) produces key parts of, or provides services for, cluster munitions systems, and/or (c) is alleged to have contravened the convention on anti-personnel mines in the last ten years and which has not addressed the allegations, and/or (d) manufactures products, or provides services, which are all or part of a nuclear weapons system.

Tobacco - makes more than 10% of its total turnover from tobacco products.

Pornography - derives more than 3% of its total turnover from pornography or adult entertainment.

Fossil Fuels - (a) derives more than 33% of its total turnover from the refining or extraction of, or generation of power from, fossil fuels and/or (b) derives more than 10% of its turnover from coal mining activities. Companies whose listing falls within the Oil & Gas sector are also excluded.

The following further exclusions are currently pending approval from the FCA:

Alcohol - derives more than 10% of its total turnover from the sale or production of alcohol.

Gambling - derives more than 10% of its total turnover from gambling (including spread betting).

High Interest Rate Lending - derives more than 25% of its total turnover from high interest rate lending (high interest being defined as lending at an annual percentage rate (APR) of over 100%).

 

 

Resources, Affiliations & Corporate Strategies

Hugo Ure manages the Trojan Ethical Income Fund.

Hugo graduated from Oxford University in 1999 and joined Kleinwort Benson in 2004 where he focused on equity analysis until his move to Troy in January 2009.  As well as being the primary manager of the Trojan Ethical Income Fund, Hugo has primary responsibility for a £76m segregated account for a charity.  He is co-manager of Troy Income & Growth Trust plc and assistant manager of the Trojan Income Fund. Hugo is a CFA charterholder.

We try to keep the investment process as simple and intuitive as possible. We only invest in those companies that we feel we thoroughly understand and that we believe have enduring qualities that will allow an investment to compound in value over the long term. We aim to own and not trade investments, so we have to be confident in the ability of a business to deliver growing cash flows into the future.

Troy has a rigorous focus on quality. We invest in businesses with high returns on invested capital which we consider to be sustained by durable competitive advantages. We favour stable and growing companies with a strongly differentiated product or service that new or existing rivals struggle to copy. These are companies with low risk to their earnings that permit sustained high levels of profitability. We also pay particular attention to how management allocates capital and typically avoid highly acquisitive and indebted companies.

Having identified companies that meet our quality criteria, we consider making an investment only when, in our view, three further conditions are met: first, their balance sheets are soundly financed so that management can allocate capital flexibly; second, they are managed by people that act in the best interests of shareholders; and lastly, when their shares are quoted at a price that underestimates future cash flows. We believe this combination of owning high quality companies, purchased at reasonable prices gives us the defensive characteristics we seek.

The first part of the research process is populating and maintaining Troy’s investment universe of approximately 200 stocks that meet our quality criteria. All members of the investment team, including the fund managers, have responsibility for idea generation and research. We do not allocate stock, sector or geographic responsibilities to particular analysts as we consider it to be important that all members of the team are able to compare the merits of a wide spectrum of investments. This ensures pooled responsibility for our investments and healthy internal discussion.

The Trojan Ethical Income Fund’s investment universe excludes approximately 10% of companies from Troy’s overall investment universe of 200 stocks on the basis of its ethical investment criteria.

Troy’s fundamental investment process is supported by VigeoEiris, a leading provider of ESG research, who underpin the ethical screening process and provide additional input on environmental, social and governance issues.

The Investment Manager employs Ethical Investment Research Services (EIRIS) Limited (“EIRIS”) to provide an ethical screening service and research in respect of the Sub-fund.  The Investment Manager shall, for a fee agreed between the Investment Manager and EIRIS, which the Investment Manager shall bear, obtain data and research from EIRIS involving monitoring the behaviour and activities of businesses according to the Sub-fund’s ethical investment criteria. The Investment Manager will use the data and research provided by EIRIS as an element of the investment process.

Where an investment is identified as no longer meeting the Sub-fund’s ethical investment criteria, the Investment Manager will seek to sell the investment within the following 90 days. The prices at which such an investment can be sold in these circumstances may be lower than the prices that might otherwise have been realised for the investment if such a sale was not required.

Investors should note that this document sets out the Sub-fund’s ethical investment criteria as they currently stand.  However, the Investment Manager hopes that investors and prospective investors will understand that the process of investing on a socially responsible basis is constantly evolving.  Therefore, the Investment Manager’s approach, and that of EIRIS, may change which, in turn, may mean that the Sub-fund’s ethical investment criteria may be amended from time to time.

 

 

BlackRock Kames Ethical Pn A Negative Ethical Pension UK Equity 28/03/2002
AXA Wealth Kames Ethical Equity Pn S4 Negative Ethical Pension UK Equity 30/12/2009 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

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

BMO (F&C) Responsible Global Equity 1 Acc Ethically Balanced OEIC/Unit Trust Global Equity 12/10/1987 More Info (click to view)

SRI / Ethical Overview

Investment is concentrated in companies in any market whose products and operations are considered to be making a positive contribution to society. The Fund seeks to avoid companies which, on balance, are felt to be harming the world, its people, its wildlife or which trade extensively with oppressive regimes. The Fund aims to achieve long term capital growth.

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.

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.
  • 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 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.

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.

SRI / Ethical Policy

All stocks considered for investment first undergo screening by members of the Governance and Sustainable Investment Team (GSI Team), to determine if they meet the criteria for inclusion in the portfolio’s investable universe. The GSI team has created a thorough and robust process to analyse companies to determine whether they meet the Fund criteria:
 

  • The Fund will exclude companies with exposure to any business activities deemed to be socially or environmentally damaging, with particular tolerance thresholds. These excluded activities are rooted in the Fund’s heritage in Quaker principles and have also adapted over time with the development of major social and environmental issues.
  • The Fund will also exclude companies which do not meet sufficiently high standards in how they operate, based on a detailed assessment of their policies and performance with respect to overall sustainability management. The focus will vary by sector according to relevance and includes certain absolute exclusions in company behaviour but is otherwise often a qualitative judgement. In order to make these assessments, BMO Global Asset Management have established particular positions on a range of relevant issues, such as climate change and what we consider to be progressive approaches to these issues by companies. These positions are based on a range of inputs that include evolving international norms and agreements, extensive primary research, including field visits and the input of our Responsible Investment Advisory Council.
  • The external Responsible Investment Advisory Council is also involved in reviewing the approvability ratings of companies as well as in developing the screening criteria for the Fund and targeting engagement activity. Input is also frequently sought from a range of stakeholders. We provide below a brief snapshot of the criteria (not an exhaustive list of screens):


Exclusion Criteria:

  • Alcohol
  • Gambling
  • Nuclear power generation
  • Oil sands & arctic drilling
  • Pornography
  • Tobacco
  • Weapons


Qualitative Assessment

  • Animal welfare standards
  • Business ethics
  • Environmental management
  • Health & Safety
  • Human rights & oppressive regimes
  • Labour standards
  • Positive product choices
  • Sector-specific best practice


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 Responsible Global Equity Fund is managed by three distinct teams with the process led by the Responsible Global Equities team.

1. The Responsible Global Equities Team manages the strategy using fundamental, bottom-up research to construct a portfolio of companies from the acceptable universe. The Fund management team initially identifies companies for possible inclusion and they submit the companies to the GSI team for assessment against the ethical and sustainable screening criteria. Following approval for inclusion in the investable universe the investment team is then responsible for deeper investment analysis, portfolio construction and ongoing monitoring.

2. The Governance and Sustainable Investment Team (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 (EMEA) 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.

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

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

L&G Ethical Global Equity Index PMC Pn G17 Sustainability Themed Pension Global Equity 12/05/2004
OMW IPL F&C Stewardship Growth Pn Ethically Balanced Pension UK Equity 04/02/2014
Rathbone Active Income For Charities Negative Ethical OEIC/Unit Trust Global Mixed Asset 01/07/2012
Ludgate Environmental Environmentally Themed Investment Trust Global Equity 01/08/2007 More Info (click to view)

SRI / Ethical Overview

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

Jersey Domicile

Resources, Affiliations & Corporate Strategies

SLFC (Citibank) Green Pn Cap Ethically Balanced Pension Global Equity 31/10/1997
Jupiter Ecology Inc Environmentally Themed OEIC/Unit Trust Global Equity 31/03/1988 More Info (click to view)

SRI / Ethical Overview

The Jupiter Ecology Fund invests in companies that are providing solutions to environmental problems.

The Fund focuses on companies which respond to environmental challenges by developing a product or service which provides sustainable long-term solutions.

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).
  • 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.
  • 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.)
  • 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.
  • 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.
  • 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.

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.
  • 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.
  • 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.

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.

SRI / Ethical Policy

The Jupiter Ecology Fund invests in three environmental investment themes:

Environmental Infrastructure: Companies which own or develop low environmental impact infrastructure in areas such as alternative energy, pollution abatement, waste management, utilities and transportation networks.

Resource efficiency: Companies which provide technologies, products and services aimed at improving the efficiency and long-term environmental impact of natural resources and energy.

Demographics: Companies which provide technology, products and services which enhance human well-being, consumer choice, communication and transportation whilst minimising environmental impacts. We believe that this represents an exciting and diversified long-term opportunity to invest in some of the most forward thinking and innovative companies in the world.

The Jupiter Ecology Fund also explicitly seeks to avoid investments in industrial activities, which do not fit with its environmental and social goals.

Examples of such negative activities include:

  • manufacturing of armaments, alcoholic drinks or tobacco products;
  • publication of pornographic material;
  • generation of nuclear power; and
  • operation of gambling facilities.

Resources, Affiliations & Corporate Strategies

Charlie Thomas has been the Lead Fund Manager of the Jupiter Ecology Fund since 2003.  Charlie works closely with Abbie Llewellyn-Waters, Assistant Fund Manager, and Jon Wallace, Environmental & Responsible Investment Analyst.

Ethical and environmental screening for the Jupiter Ecology Fund is undertaken by the Jupiter Sustainable Investment Team, a team of analysts specialising in the environmental performance of companies. The Team assesses companies against a set of ethical and environmental criteria.

OMW F&C Responsible UK Equity Income Ethically Balanced Life UK Equity Income 28/09/2005
SVM All Europe SRI A Responsible Ownership OEIC/Unit Trust Europe Equity 31/10/2006 More Info (click to view)

SRI / Ethical Overview

SRI Policies (Primary strategy in bold)

  • 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).

SRI Features

  • RSMR Rated Fund rating agency 'Rayner Spencer Mills Research' have awarded this fund 'rated' status.

Corporate Activity

-

SRI / Ethical Policy

Fund focus is engagement but includes limited screening  (tobacco, armaments, pornography)

Resources, Affiliations & Corporate Strategies

CM Schroder QEP Global Core Unclassified Life Global Equity 01/01/1970
Royal London Ethical Bond A Ret Ethically Balanced OEIC/Unit Trust UK Equity 31/01/2007 More Info (click to view)

SRI / Ethical Overview

The Fund invests predominantly in investment grade UK corporate bonds which meet predefined ethical criteria. The policy of the Fund considers all of the following ethical issues: alcohol, armaments, gambling, pornography, tobacco, human rights, animal testing and the environment.

 

SRI / themed / ethical assets under management – overview

 

  • Fund Size (GBP):   £440.70m 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)

  • 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.)
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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 any one or a combination of the following five categories are excluded:

Alcohol                               Brewing, distilling or selling alcoholic drinks

Armaments                      Manufacturing armaments or nuclear weapons, or associated strategic products

Gambling                          Operating betting shops, casinos or amusement arcades

Tobacco                            Growing, processing or selling tobacco products

Pornography                    Providing adult entertainment services

 

 

 

 

If a company generates more than 10% from any of one the excluded sectors (or 10% of any of the sectors combined), 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.

 

The screening process also identifies companies that have the opportunity to make a positive impact. Companies with inappropriate or inadequate policies or systems in the following areas are also excluded:

 

Environment                    Companies with a high environmental impact and no evidence of appropriate environmental management systems

Human rights                   Companies in strategic sectors operating in countries of concern with no evidence of policies or systems to manage human rights risks

Animal testing                 The Fund excludes companies that test cosmetics on animals or provide animal testing services. Our Ethical Bond Fund additionally excludes companies that test household products, other products (excluding medicines) and their ingredients on animals.

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

 

Kames Ethical Corporate Bond A Acc Negative Ethical OEIC/Unit Trust UK Fixed Interest 27/04/2000 More Info (click to view)

SRI / Ethical Overview

We launched our first ethical equity fund in 1989. Since then, we have broadened our ethical capabilities to include ethical corporate bond and cautious managed funds. Today we are distinctive among fund providers in offering such a broad suite of ethical products. Some of the characteristics of our ethical proposition are:

  • We are committed to ethical investing
  • Ethical companies make good investments.
  • ‘Dark green’ funds operate strict ethical principles.
  • Our ethical funds are rated by Morningstar OBSR.
  • A 2014 survey named Kames Capital as one of only three ethical investment providers to be used by over 70% of financial advisers which are members of the Ethical Investment Association. 

 

SRI / themed / ethical assets under management – overview

  • Fund Size (GBP): £493.47 million as at 31/05/2017
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management: £1,748.84 million as at 31/05/2017
  • Total assets under management: £45,335 million as at 31/03/2017

 

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.
  • 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.
  • 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.
  • 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.

Corporate Activity

  • PRI signatory This fund management company has signed up to the UN backed 'Principles of Responsible Investment' initiative.

SRI / Ethical Policy

All three of Kames Capital’s ethical funds apply the same ‘negative’ screen. This means that we screen companies out of the potential investment universe based on certain unacceptable activities. Because we apply stringent screening criteria, our funds are considered ‘dark green’. We do not screen out whole sectors, but some may largely be excluded because of the nature of their business activities.

Our screening criteria are clear and explicit. Certain ethical issues, however, are not black or white. Our 20 years’ experience of managing ethical investments means we can consider these issues appropriately when they arise.

We do not apply ‘positive screening’ criteria like some other funds. The funds may invest in themes that could be considered ‘socially responsible’, like alternative energy or social housing companies, but only if these companies pass our negative screens.

We aim for transparency in our screening process. This means it is easy for clients to understand the types of companies we exclude. Our underlying philosophy is to avoid companies that cause significant negative effects in society or the environment. 

We use both external screening databases and in-house research to ensure companies meet our ethical criteria and are suitable for investment. Our Corporate Governance team focuses on the screening and research, freeing our fund managers to focus solely on stock selection and portfolio construction.

Our ‘dark green’ screen is ideally suited to investors looking for a more stringent ethical philosophy. It adopts a negative approach that screens companies out of our funds’ potential investment universe if they engage in certain unacceptable activities. Examples of our screening process are shown below:

  • Animal Welfare
  • Military
  • Nuclear power
  • Environment
  • Political Donations
  • Genetic Engineering
  • Gambling
  • Alcohol
  • Tobacco
  • Pornography
  • Banks
  • Opressive Regimes

Kames Capital aims to be a responsible investor. We ensure that we identify and understand the key environmental, social and governance (ESG) risks for each of the companies, industries and sectors that we invest in. We do this because evidence suggests that companies who rank among the leaders in governance and sustainability tend to outperform as investments over the long term.

Our approach to responsible investment is consistent with the UK Stewardship Code. The Code sets out good practice Principles on engagement with investee companies which UK-based institutional investors should aspire to. You can download our compliance statement from our website.

We are also a signatory to the United Nations Principles for Responsible Investment (UN PRI). The UN PRI is the principal international investor initiative to drive the integration of environmental, social and governance issues into investment decision making. The initiative places a formal requirement on signatories to be active, responsible shareholders and report annually on activities and progress in a transparent manner.

 

Resources, Affiliations & Corporate Strategies

Our corporate governance team is responsible for the analysis of relevant environmental, social and governance (ESG) issues. They are responsible for identifying the key ESG risks for each of the companies, industries and sectors that we invest in and in turn providing our fund managers with succinct, relevant data that could have investment consequences. Our corporate governance team is linked to equivalent individuals in other Aegon Asset Management country offices.

We use a range of data sources for ESG research purposes and these resources have increased significantly in the last few years as the quality of the data available has improved.  Resources currently include:

  • MSCI ESG Manager – company ESG research platform
  • EIRIS Portfolio Manager – company ESG research platform
  • ASSET4 assetmasterProfessional –  company ESG research platform
  • RiskMetrics ProxyExchange – proxy voting research and processing
  • The Association of British Insurers (ABI) IVIS proxy voting research service 
  • BoardEx - corporate board and remuneration database
  • Specialist databases, such as UN Principles for Responsible Investment (UNPRI), Carbon Disclosure Project (CDP) and Extractives Industry Transparency Directive (EITI)
  • Specialist research from brokers and academics
  • Various specialist journal subscriptions

A strong relationship exists between our corporate governance team and our fund managers, which enables material non-financial information to be incorporated into our investment processes. ESG research reports produced by our corporate governance team sit alongside all the other existing investment research undertaken by our fund managers on a given security. The corporate governance team also provide relevant news-flow and commentary on ESG issues to our fund managers that they might not receive from other sources.  

Our fund managers consider ESG research alongside other relevant financial and non-financial factors in the investment decision-making process. The importance that the fund manager attaches to ESG issues is in proportion to their ability to influence security prices.

 

FL Conscience Pn (xNM) Ethically Balanced Pension UK Equity 31/08/1987
Aberdeen Ethical World A Acc Ethically Balanced OEIC/Unit Trust Global Equity 30/04/1999 More Info (click to view)

SRI / Ethical Overview

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

  • RSMR Rated Fund rating agency 'Rayner Spencer Mills Research' have awarded this fund 'rated' status.

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Foresight Solar & Infrastructure VCT PLC C Ord 1p Environmentally Themed Investment Trust Global Equity 04/04/2013
Scottish Widows ThreadneedleUK Social Bond Pn S1 Social Themed Pension UK Fixed Interest 14/11/2016
Standard Life F&C Responsible UK Income S5 Ethically Balanced Life UK Equity Income 09/02/2006
Aviva Alliance Trust Sustainable Future Global Growth Pn S2 Sustainability Themed Pension Global Equity 05/04/2001 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Alliance Trust Sustainable Future Global 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)

  • 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

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

AXA Wealth Kames Ethical Cautious Managed Pn S4 Negative Ethical Pension UK Mixed Asset 19/10/2008 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

Scot Eq Ethical Pn Negative Ethical Pension UK Equity 31/03/1988
Aviva Alliance Trust UK Ethical NU Pn Negative Ethical Pension UK Equity 09/05/1999 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Alliance Trust UK 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

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

FL Stewardship Income Pn NGP Ethically Balanced Pension UK Equity Income 31/03/2005
LV=Schroder QEP Global Core Pn S2 Environmentally Themed Pension Global Equity 07/04/2009
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

L&G Kames Ethical Equity Pn G25 Negative Ethical Pension UK Equity 12/04/2006 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 Royal London Sustainable World Trust S4 Sustainability Themed Life Global Mixed Asset 22/11/2010
OMW Aberdeen Ethical World Equity Pn Ethically Balanced Pension Global Equity 27/06/2006 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Aberdeen Ethical World" 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

AXA Wealth AXA IM Ethical Distribution Ethically Balanced Life UK Mixed Asset 29/09/2010
Aviva F&C Responsible Global Equity Pn S6 Ethically Balanced Pension Global Equity 28/09/2008
SIP Jupiter Ecology S6 Environmentally Themed Life Global Equity 01/01/1970
FL F&C Responsible UK Equity Income AP Ethically Balanced Pension UK Equity Income 01/02/2007
OMW EdenTree Amity International Ethically Balanced Life Global Equity 16/10/2008
Family Charities Ethical Exempt S1 Sustainability Themed Life UK Equity 30/06/1996
AXA Wealth Kames Ethical Corporate Bond Pn S4 Negative Ethical Pension UK Fixed Interest 19/10/2008 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

Scot Wid Environmental Investor A Environmentally Themed OEIC/Unit Trust UK Equity 28/06/1989
Scot Eq F&C Responsible UK Growth Pn Ethically Balanced Pension UK Equity 27/11/2013 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

Blackrock LGIM Ethical UK Equity Index H Sustainability Themed Life UK Equity 28/01/2010
FL Ethical Distribution AL Acc Negative Ethical Life UK Mixed Asset 30/04/2008 More Info (click to view)

SRI / Ethical Overview

SRI Policies (Primary strategy in bold)

  • 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).

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Invests via AXA ethical fund - negative screen bias, a distribution fund ABI Mixed Investment 20-60% shares

Resources, Affiliations & Corporate Strategies

Aviva Alliance Trust Sustainable Future Absolute Growth Pn S2 Sustainability Themed Pension Global Equity 05/04/2001 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Alliance Trust Sustainable Future Absolute 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)

  • 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

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Zurich Henderson Global Care Growth 2001 AL Sustainability Themed Life Global Equity 11/02/2000
Rathbone Core Investment Fund for Charities Ethically Balanced OEIC/Unit Trust Global Mixed Asset 02/10/2016 More Info (click to view)

SRI / Ethical Overview

The fund will not invest directly in companies manufacturing tobacco or tobacco products, or companies that derive more than 10% of their revenues from the manufacture of alcoholic beverages, armaments, gambling, high interest rate lending or pornography

Fund Manager: Andy Pitt
(Source: Rathbones Monthly factsheet Feb 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.)
  • 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

  • Limited/few ethical exclusions This fund avoids companies based on limited list of ethical exclusions (relative to other ethical funds)

Corporate Activity

-

Links

-

SRI / Ethical Policy

has a policy that states the fund considers 'ethical' issues (e.g. armaments, alcohol, animal welfare, environmental or high-carbon impact, tobacco, gambling, human rights, nuclear power, pornography and/or predatory lending). These vary significantly. Check fund literature for details. 

Resources, Affiliations & Corporate Strategies

Alquity Indian Subcontinent M USD Social Themed SICAV/Offshore* Emerging Markets Equity 29/04/2014
RLP UK Ethical Pn Unclassified Pension UK Equity 01/11/1999
Pru Royal London Sustainable Leaders S2 Sustainability Themed Life UK Equity 25/01/2010
Aegon Ethical Managed (Flexible Target) Pn range Negative Ethical Pension Global Mixed Asset 27/01/2016
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

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

Zurich Ethical CS1 Unclassified Pension Global Equity 23/01/2012
Castlefield B.E.S.T. Income Inst Inc Ethically Balanced OEIC/Unit Trust UK Equity Income 01/05/2006 More Info (click to view)

SRI / Ethical Overview

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 Select Portfolio (50%-100% Shares) Sustainability Themed Life Global Mixed Asset 05/04/2006
SJP Ethical Ethically Balanced Life Global Equity 02/11/1998
FL F&C Responsible Income EP Ethically Balanced Pension UK Equity Income 01/02/2007 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

Zurich Jupiter Ecology ZP Environmentally Themed Pension Global Equity 16/03/2009 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

SLFC Green Pn Environmentally Themed Pension Global Equity 25/06/1992
Pru Royal London Sustainable Leaders Pn Ser A Sustainability Themed Pension UK Equity 25/01/2010 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "CIS Sustainable Leaders 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)

  • 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

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Blackrock GF New Energy A2 USD Environmentally Themed SICAV/Offshore* Global Unclassified 05/04/2001
AXA Wealth AB Ethical Retirement 2005-2007 Pn Core Range Negative Ethical Pension Global Mixed Asset 02/01/2013
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

Standard Life Vanguard SRI Global Stock Pn S4 Negative Ethical Pension Global Equity 05/05/2013 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Vanguard SRI Global Stock Fund (UCITS)" fund. More detailed information on its SRI / Ethical approach can be found under that fund in the "Vanguard SRI European Stock Fund (UCITS)" Product listing. 

A 'limited avoidance' fund. 

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

  • Norms focus This fund uses international standards, conventions and 'norms' to help direct where the fund can and cannot invest (e.g. the UN Global Compact).
  • 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.
  • Limited/few ethical exclusions This fund avoids companies based on limited list of ethical exclusions (relative to other ethical funds)

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

AXA Wealth Jupiter Ecology Environmentally Themed Life Global Equity 23/07/2006
FL Stewardship Managed Ethically Balanced Life UK Mixed Asset 01/11/1998
Zurich Sterling Jupiter Ecology Environmentally Themed Life Global Equity 16/03/2009
Zurich Sterling Henderson Global Care Growth Sustainability Themed Life Global Equity 04/12/2000
SIP Kames Ethical Cautious Managed Pen S6 Negative Ethical Pension UK Mixed Asset 21/07/2008 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

OMW Kames Ethical Corporate Bond Negative Ethical Pension UK Fixed Interest 26/09/2006 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

Scot Eq Kames Ethical Corp Bond Pn Negative Ethical Pension Europe >50% UK Fixed Interest 15/01/2007 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

OMW EdenTree Amity Sterling Bond Ethically Balanced Pension UK Fixed Interest 16/10/2008 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "EdenTree Amity Sterling 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

L&G IM Responsible Ownership Corporate Activity Not Set Unclassified 01/03/2013 More Info (click to view)

SRI / Ethical Overview

L&G engage on all equity and mixed assets in all geographic regions.

SRI Policies (Primary strategy in bold)

-

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

BMO Global Asset Management (EMEA) Responsible Ownership Corporate Activity Not Set Unclassified 29/01/2016 More Info (click to view)

SRI / Ethical Overview

At BMO Global Asset Management (EMEA), we have been a leader in the development of responsible investment strategies for almost three decades. Responsible Investment is central to our corporate identity and integral to our global investment philosophy. We offer a range of screened funds – the Responsible Funds range - and advisory solutions for retail and institutional investors across the investment spectrum from corporate credit to public and private equity. Our track record in ESG dates back to 1984, when we launched the UK’s first ethical strategy, the F&C Responsible UK Equity Growth strategy (formerly stewardship Growth). Our range has since broadened to include a range of ethical and thematic strategies, as well as a comprehensive approach to engagement and voting. In 2000, we launched our flagship reo® service which continues to be a market-leading engagement overlay service. As at 31 December 2015, reocovered a total of £71 billion in assets under engagement for both internal and external assets.

We have a range of policies in relation to our responsible investment activities which include:

  • Responsible Ownership Policy, giving an overview of our activities on integration, engagement and voting;
  • Corporate Governance Guidelines, which form the basis of our approach to voting as well as to engagement on governance issues. These guidelines are updated annually on the basis of international best practice and our own views. We believe in a transparent approach and publish all our voting decisions, as well as the rationale for these;
  • Responsible Investment Conflicts of Interest Policy, setting out how we identify and manage any potential conflicts relating to our activities in this area;
  • Statements of compliance against the UK Stewardship Code and transparency report for the UN Principles for Responsible Investment.


We are actively engaged in efforts to improve regulation and policies related to ESG issues, both through our membership of collaborative organisations such as the UN PRI (United Nations Principle for Responsible Investment), International Corporate Governance Network (ICGN) and Asian Corporate Governance Association (ACGA) and through our own policy work.

Engagement (underpinned by in-house and third party research), proxy voting and reporting have been an integral part of our reo® service since its launch in 2000.

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

We have long believed that ESG factors can influence company performance and that consideration of ESG factors in the investment process can reduce investment risk and underpin long-term returns. We believe this is an important consideration that has relevance across asset classes and investment styles. 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.

BMO Global Asset Management was a founder signatory to the UN PRI and has been committed since the launch of UN PRI in 2006. We receive annual feedback from the UN PRI on how we implement the six voluntary principles. In the last publishable scoring provided in 2011, we ranked top quartile on all six principles compared to our investment management peers.

For further information on BMO Global Asset Management’s capabilities in this area, a comprehensive range of related literature is available for download at the following address: http://www.bmogam.com/uk/institutional/products/responsible-investment/.

BMO Global Asset Management (EMEA) has a robust and well-established process in selecting companies and issues to engage with. We engage: proactively – by identifying through analysis weaknesses in companies; reactively – as incidents and events take place; and thematically – by identifying issues that are relevant across sectors or regions.

We measure our engagement success through “milestones,” which are positive engagement outcomes with companies. A milestone is an improvement in company ESG policy, management systems or practices, directly as a result of BMO Global Asset Management (EMEA) engagement.

As mentioned in Question 2 in relation to our voting activity, BMO Global Asset Management (EMEA) offers a unique combination of specialist knowledge in the area of corporate governance and significant investment expertise. This gives us a deep understanding of the potential impact of corporate governance issues and matters arising from the Annual General Meeting (AGM)/Extraordinary General Meeting (EGM) business on company performance. Our GSI team approaches proxy voting analysis through an investment lens, with our voting decisions and our corporate governance guidelines and proxy voting policies informed by our experience of investing in and engaging with companies globally. We report to clients on our voting and engagement activities on a regular basis and publish our voting decisions immediately after company AGMs.

It is hard to identify a single pattern in our engagement outcomes, but some of the areas where we believe we have been particularly successful are:

  • Engagement with companies in historically under-engaged markets, where we have local language and knowledge. Although building relationships takes time we find that once trust is there, significant change can be achieved. Our Japanese team member is currently seeing major governance improvements in that market (in part a result of a changed political environment, but also investor pressure). Our Chinese team member is encouraged by a marked improvement in the quality of dialogue Chinese companies are willing to have, but this remains a market where the timescales for change are slow.
  • Engagement on corporate governance issues, particularly in markets where remuneration votes are mandatory (e.g. UK, US). Increasingly, we find companies approaching us for advice or consultation well ahead of their AGM, particularly given our status as a large asset manager. This means we can achieve results before the issue even goes to a vote.
  • Engagement with extractives companies. We have highly experienced engagers specialising in the mining and oil and gas sectors. As well as relationships with the majors, they have also engaged with lesser-known companies in their sectors, using the knowledge gained from their larger peers. They have also been engaging extensively on the ‘stranded assets’ issue; by its nature, the results of this will only be seen over time.

Resources, Affiliations & Corporate Strategies

The GSI team is based in our Head Office in London and is outlined below:

  • Vicki Bakhshi, Head of GSI, Region Covered: Global, Themes/Sectors Covered: Climate Change, 15 years sustainability/investment experience, 9 years at firm
  • Claudia Wearmouth, Director, Region Covered: Global, Themes/Sectors Covered: Responsible Funds, 13 years sustainability/investment experience, 8 years at firm
  • Matthias Beer, Associate Director, Region Covered: Europe, Themes/Sectors Covered: Oil and Gas sector, 14 years sustainability/investment experience, 6 years at firm
  • Juan Salazar, Associate Director, Region Covered: Latin America, Themes/Sectors Covered: Mining Sector / Human Rights, 17 years sustainability/investment experience, 6 years at firm
  • Yo Takatsuki, Associate Director, Region Covered:  Asia, Themes/Sectors Covered: Pharmaceuticals, 12 years sustainability/investment experience, 4 years at firm
  • Kalina Lazarova, Associate Director, Region Covered: Europe, Themes/Sectors Covered: European / Governance, 12 years sustainability/investment experience, 1 year at firm
  • Manuel Isaza, Associate Director, Region Covered: US & Latin America, Themes/Sectors Covered: North American Governance / Banks, 13 years sustainability/investment experience, 1 year at firm
  • Liat Reback, Analyst, Region Covered: Global, Themes/Sectors Covered: Consumer Staples, 2 years sustainability/investment experience, 2 years at firm
  • Tenisha Elliott, Data & Systems Analyst, 6 years sustainability/investment experience, 3 years at firm
  • Olivia Baker, Data & Reporting Analyst, 4 years sustainability/investment experience, 2 years at firm


Our in-house quantitative ESG Risk Tool, provides ESG related scores on more than 6,000 companies around the world. This includes input from external providers such as MSCI ESG. We focus on companies which represent the most material financial holdings in reo® clients’ portfolios. Our ESG Risk Tool captures ESG risks faced by a company as a result of its own policies and performance, as well as those faced more broadly as a result of sector and countries of operations.

BMO Global Asset Management (EMEA) 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), MSCI (ESG factors), Governance Metrics International (corporate governance risk ratings). 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.

At BMO Global Asset Management (EMEA) we have always seen the importance of working with collaborative organizations and initiatives to achieve effective change. We are actively engaged in efforts to improve regulation and policies related to ESG issues, both through our membership of collaborative organisations such as the UN PRI, Investment Management Association (UK), Eumedion, Institutional Investors Group on Climate Change, International Corporate Governance Network, and through our own policy work.

The initiatives and organisations that we are involved with to promote ESG best practice are:

  • UN Principles for Responsible Investment (UN PRI) including workstreams on Human Capital, Palm Oil and representation on the Clearinghouse Steering Committee (Signatory at launch in 2006)
  • Carbon Disclosure Project (CDP) and CDP Carbon Action (Signatory at launch in 2000)
  • Institutional Investors Group on Climate Change (IIGCC) 2001
  • Access to Nutrition Index 2013
  • Global Network Initiative (GNI)
  • Interfaith Centre on Corporate Responsibility (ICCR)
  • Eumedion
  • Ceres
  • International Corporate Governance Network (ICGN)
  • Asian Corporate Governance Association (ACGA)
  • Global Investor Governance Network (GIGN)
  • Investment Management Association (IMA)
  • 30% Club (on board diversity)
  • Council of Institutional Investors (CII)
  • Extractives Industry Transparency Initiative (EITI)
  • The UK Sustainable Investment & Finance Association (UKSIF)


Examples of our work with various initiatives to promote responsible investment include our long term support of the UN Environment Programme Finance Initiative (UNEP FI), which our parent company, Bank of Montreal, is a member of. In 2009 we were a signatory to the 2009 Investor Statement on the Urgent Need for a Global Agreement on Climate Change, an initiative led by UNEP FI. We continue to collaborate with the initiative. An example of our work with UNEP FI is our recent endorsement of an investor statement encouraging the International Organization of Securities Commissions (IOSCO) to improve global corporate ESG disclosure. The Investor Initiative for Sustainable Exchanges (IISE), in which BMO Global Asset Management (EMEA) has participated actively for the past two years, collaborated with UN PRI and UNEP FI to launch this investor sign-on statement encouraging IOSCO to take specific steps to improve the state of global corporate ESG disclosure including: new rules assessing the current state of sustainability reporting and spearheading conversations with the regulatory community about setting global standards for ESG disclosure.

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

SIP Kames Ethical Equity S6 Negative Ethical Life UK Equity 01/01/1970
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

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

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

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Threadneedle Ethical UK Equity Sustainability Themed OEIC/Unit Trust UK Equity 30/10/2015 More Info (click to view)

SRI / Ethical Overview

Launched in October 2015, our Threadneedle Ethical UK Equity Fund takes a novel approach in combining ESG performance, an outcomes focus and negative screening. The Fund actively targets UK companies that exhibit the best ESG performance and/or produce innovative products positioned to contribute to a better future, and avoids companies that we deem to be involved in unethical or controversial activities. In November, it was awarded Best New Entrant, at Investment Week’s Sustainable Investment Awards 2016.

 

The differentiated aspect of the Fund is its three-pronged approach, combining ESG performance, an outcomes focus and negative screening.

 

I.             First, we exclude companies that are unable to satisfy our ethical restrictions, using the MSCI UK IMI Extended SRI index to aid exclusion of sectors e.g. alcohol, weapons, gambling.

 

II.            We consider ESG performance, using both internal and external research, as we believe that those companies with excellent corporate governance can enhance their potential into the future. We also seek to engage with the companies to ensure continual improvement.

 

III.           We seek companies that deliver innovative solutions to achieving sustainable outcomes. To achieve this, we look at the UN sustainable development goals and key themes, including climate change, healthcare, safety, security and verification.

 

 

SRI / themed / ethical assets under management – overview

 

As at 31 March 2017

 

  • Fund Size (GBP):   £24.0m
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management:   £288.8m
  • Total value of assets covered by responsible ownership policy:   £9,223m*
  • Total assets under management:   £108,367m**

 

*range of styles, including: best in class, UN Global Compact, ESG screen, thematic, impact etc.

** Columbia Threadneedle Investments, EMEA & Asia only

 

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.)
  • 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.
  • 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

  • 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.
  • 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.
  • 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.
  • Norms focus This fund uses international standards, conventions and 'norms' to help direct where the fund can and cannot invest (e.g. the UN Global Compact).
  • 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.
  • 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.
  • 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.
  • 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.
  • 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

The Fund targets UK companies that exhibit the best, or improving, ESG performance in the way they operate that fit within our tried and tested UK Equity process. However, investing responsibly is also about opportunity; the opportunity to combine financial objectives with a positive focus on investing with purpose.

 

This positive focus is about more than just internal standards; the Fund also actively seeks to target companies that deliver products or services that are positioned to contribute to a better future. In our view, this ESG-integrated and outcome-focused approach sets this Fund apart from the more traditional ethical fund approach, offering a ‘best in class’ solution for those looking to invest responsibly and with purpose.

 

The Fund invests at least three-quarters of its assets in shares of companies in the United Kingdom (or companies that have significant operations there) that meet its ethical investment criteria. Investments are assessed by the fund manager by reference to ethical investment guidelines additional to those usually considered by the fund manager when making investment decisions.

 

There are two ways in which UK companies are evaluated to create the ethical investment universe to which the Fund Manager will apply his investment process: ethical exclusion screening and positive inclusion and selection.

 

1.      Ethical exclusion screening

 

For the Fund to invest in a company, it must satisfy the Fund’s ethical restrictions. Stocks are excluded from the Fund’s investable universe if they do not exhibit appropriate Environmental, Social or Governance (ESG) behaviour, for example if a certain amount of the company’s business activities are involved in industries such as alcohol, gambling, tobacco. These ethical restrictions are derived from the methodology of the MSCI Socially Responsible Investment (SRI) Index, the Fund’s Reference Index, but may vary slightly in some instances.

 

2. Positive inclusion & selection

 

As well screening out companies that do not perform well against ESG criteria, the Fund actively seeks to include UK companies that exhibit strong ESG performance in the way they operate. Companies that pass the ethical exclusion screening are further assessed and selected on the extent of their ESG performance relative to other companies within their sector, drawing on the team’s strong capabilities and experience with ESG analysis. The Fund also selects companies that deliver or are developing products, services and practices that are positioned to contribute to a better future, i.e. that fit in with key sustainability themes.

 

These comprise: health and wellbeing, climate and energy transition, demographics, communities, education, environment, safety and security.

 

Companies which embrace the efficient use of resources and invest in both people and technology to generate sustainable returns over time create the context in which investors can do well by doing good.

 

Embracing this creates a productive investment focus in which we apply our research process to find suitable investments with the appropriate investment characteristics. As bottom-up stock pickers, the fund management team look for companies with robust business and financial models that trade on attractive valuations and have solid management teams that look to the future. We seek to invest in and support companies over a long-term horizon, which ties in with our UK equity team investment philosophy, while also supporting an ethical approach to investing.

Resources, Affiliations & Corporate Strategies

Resources

 

We have a dedicated Responsible Investment (RI) team devoted to researching and engaging on ESG issues and have invested significant resources in the development of our expertise in this area. This includes not only internal research but the use of supplementary external research and ratings as required. Our RI team has worked alongside our investment professionals since 1998. 

 

The RI team is composed of six members in the UK with responsibility for ESG research, integration, engagement, proxy voting and ESG reporting and, in one case RI portfolio management, which is a new position last year. A Director, Global Responsible Investment (US) is located in the US, as is a proxy voting team. Responsibility for the governance and responsible investment capabilities lies with Iain Richards, the Head of Governance and Responsible Investment at Columbia Threadneedle Investments.

 

Sources of Information to the RI team include:

 

  • Company data and dialogue including traditional and sustainability reporting
  • Brokers focused on ESG research
  • External ESG rating provider: MSCI ESG research
  • Corporate governance database: BoardEx
  • Proxy voting related governance research: ISS and IVIS
  • Bloomberg
  • NGOs
  • Academia
  • News
  • National and International government bodies

 

The RI team undertake the research which drives the fund, in particular where stocks are not covered by MSCI ESG research, or where there is more work to be done in identifying the salience of sustainable opportunities. Examples include smaller companies providing cyber security opportunities, or innovating in renewable energy production. The team produce bespoke ESG review, incorporating exposure to sustainability themes, where these are identified. The RI team also typically conduct or assist engagement to gain further insight and drive improvement on ESG and sustainability issues. Finally, the team make voting recommendations regarding the companies in the Fund, which can be informed by ESG issues – diversity for instance is now systemically considered as a standing voting consideration with potential to trigger action across all companies and funds. 

 

In addition, the financial analysis is undertaken by our UK equities team, using their established investment process to identified companies with robust business and financial models that trade on attractive valuations and have solid leadership.

 

Fund manager

 

The fund is managed by Matt Evans, who co-managers the Threadneedle UK Smaller Companies Fund, the Threadneedle UK Mid 250 Fund and a range of small cap institutional portfolios. Supported by the RI team, and the UK team, and mindful of the exclusionary criteria, the manager makes the final investment decision.

 

General corporate affiliations

 

Given the number of potential initiatives, we seek to prioritise, focusing on those which best align with our priorities and add greatest value to our processes. Some of the key associations and organisations are outlined below.

 

We were a founding member of the UN PRI and remain actively involved in the organisation, whose influence has increased since its foundation in 2006: in our last assessment from the PRI we received an A+ (the highest rating) for our overall approach to responsible investment.

 

Other key memberships are those of: the United Kingdom Sustainable Investments and Finance Association (UKSIF), the European Social Investment Forum (EUROSIF), and the Asian Corporate Governance Association (ACGA).  These memberships reflect our commitment to RI across a range of markets, reflecting the geographic diversity of our investments, as well our significant holdings in UK-listed companies. 

 

We have a longstanding relationship with UKSIF in particular.  We are represented on the UKSIF Leadership committee, and this year we participated at UKSIF events, including an event on the strategy of the SIF, at which we contributed ideas for increased member engagement and participation. We also contributed to their 2016 survey, enhancing their research into the nature of the responsible investment market.

 

Our Chief Investment Officer is also on the board of the Investor Forum, which seeks to contribute to long-term investment performance by promoting cultural change and enhancing shareholder stewardship in the UK. Similarly, we are also an active member of the UK Corporate Governance Forum, an investor network made up of asset managers and owners to discuss individual companies, industry and ESG developments, and are signatories to the UK Stewardship Code

 

We are also signatories to the CDP (formerly the Carbon Disclosure Project), including their recent forestry and water programmes.

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

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

L&G Ethical Pn G1 Acc Sustainability Themed Pension UK Equity 05/04/2001
Zurich Sterling Kames Ethical Cautious Managed Ethically Balanced Life UK Mixed Asset 28/11/2016
Standard Life Inv Ethical Corporate Bond Ret Acc Negative Ethical OEIC/Unit Trust UK Fixed Interest 02/11/2005 More Info (click to view)

SRI / Ethical Overview

Standard Life Investments’ Ethical Corporate Bond Fund aims to provide high, stable income by investing predominantly in investment grade bonds that meet our strict ethical criteria. The Fund is actively managed by our investment team, focusing on bottom-up security selection while adjusting the overall risk and themes through a careful assessment of macro and geopolitical drivers. The Portfolio Manager excludes companies that fail to meet our ethical criteria while seeking to include companies whose business activities make a positive contribution to society. These criteria are
agreed with the Standard Life Ethical Funds Advisory Group and may be amended occasionally.

 

SRI / themed / ethical assets under management – overview: 

  • Fund Size (GBP): £310.2 million as of 31 March 2017
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management:  £2,571.2 million as of 31 March 2017
  • Standard Life Investments has a total of £277,929.6 million assets under management as of 31 December 2016

 

 

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.
  • 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.
  • 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.)
  • 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.