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Fund EcoMarket

the sustainable, responsible and ethical investment information hub

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Displaying 365 options from Fund EcoMarket

Print Fund Name SRI Style Product Region Asset Type Launch Date More info
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

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

BlackRock Charifaith Common Inv Acc Faith Based OEIC/Unit Trust Global Mixed Asset 31/10/2006
LV=Schroder QEP Global Core Pn S2 Environmentally Themed Pension Global Equity 07/04/2009
Syncona Ltd Social Themed Investment Trust Global Hedge 25/10/2012 More Info (click to view)

SRI / Ethical Overview

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

L&G F&C Responsible Global Equity Pn 3 Ethically Balanced Pension Global Equity 01/11/2011
Aegon Kames Ethical Equity Pn AOR Negative Ethical Pension UK Equity 15/10/2014 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

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

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Standard Life SLI Ethical Corporate Bond S1 Negative Ethical Life Not Set Fixed Interest 11/03/2013 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

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Jupiter Ecology S4 Environmentally Themed Life Global Equity 01/01/1970
FL Conscience (xNM) Ethically Balanced Life UK Equity 31/08/1987
Aberdeen Responsible UK Equities Ret Acc Ethically Balanced OEIC/Unit Trust UK Equity 08/05/2006
Zurich UK Opportunities 2 EP Unclassified Pension UK Equity 01/01/1996 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

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Corporate Activity

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Links

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SRI / Ethical Policy

Invests in what fund managers consider to be 'well governed' companies

Resources, Affiliations & Corporate Strategies

Aegon Ethical (RR) Pn Negative Ethical Pension UK Equity 28/09/2014
Aviva Alliance Trust Sustainable Future European Growth S1 Sustainability Themed Life Europe Ex-UK Equity 24/06/2001
Impax Environmental Markets (Ireland) Fund Environmentally Themed OEIC/Unit Trust Global Equity 09/12/2004 More Info (click to view)

SRI / Ethical Overview

Impax Environmental Markets (Ireland) Fund is an Ireland listed OEIC pursuing a long-only global equity strategy investing in pure play - or "specialist" - environmental companies.  The Fund has over 80% of the underlying revenue of the portfolio companies generated by sales of environmental products or services. It also demonstrates a net positive carbon impact.   

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)
  • 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.
  • 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.
  • Climate change / GHG policy Considers climate change related issues such as greenhouse gas/carbon emissions. Funds that consider such issues typically require careful management of such issues in order for a company to be considered acceptable/attractive.
  • 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

  • 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.
  • Specialist/boutique fund manager The fund management company that offers this fund specialises in SRI or sustainability focused investment options. They are likely to be a smaller but more focused business and unlikely to have significant investment in companies that are typically avoided by SRI/ethical funds.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • Faith friendly These funds are likely to have attributes that some faith based investors may welcome such as opposition to armaments, gambling and alcohol.

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

Impax Environmental Markets (Ireland) Fund is solely focused on investing in Resource Efficiency and Environmental Markets. The Fund applies a positive screening approach to companies operating within these diverse high growth markets.

Resources, Affiliations & Corporate Strategies

We are members of, or signatory to the following:

  • UN Principles for Responsible Investment (UNPRI)

  • Institutional Investors Group on Climate Change (IIGCC)

  • Investor Network on Climate Risk (INCR)

  • Carbon Disclosure Project (CDP)

  • UK Sustainable Investment and Finance Association (UKSIF)

  • USSIF

  • UK Stewardship Code

  • Global Impact Investing Network (GIIN)

    Impax Asset Management has also been awarded a Queen’s Award for Enterprise: Sustainable Development, the UK’s highest business accolade for business success.

Aviva Alliance Trust UK Ethical Negative Ethical Life UK Equity 09/05/1999
FL Stewardship Corporate Bond Ethically Balanced Life UK Fixed Interest 04/12/2007
RLP Ethical Bond Pn Unclassified Pension UK Fixed Interest 26/03/2010
SIP Kames Ethical Equity S6 Negative Ethical Life UK Equity 01/01/1970
OMW F&C Responsible UK Equity Income Pn Ethically Balanced Pension UK Equity Income 26/09/2005 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Scot Eq Ethical Cautious Pn Negative Ethical Pension UK Mixed Asset 26/10/2010
FL Stewardship Managed Ethically Balanced Life UK Mixed Asset 01/11/1998
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 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. Funds that consider such issues typically require careful management of such issues in order for a company to be considered acceptable/attractive.
  • 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

  • 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.
  • 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.
  • 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.

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'.

SRI / Ethical Policy

At Standard Life Investments, we firmly believe that companies demonstrating a commitment to sound governance and sustainable investment will likely enjoy comparative advantages in the long run. We are determined to continually improve our processes and strengthen our commitment to fulfilling our governance and stewardship responsibilities and to actively engage with companies to promote and develop global standards on many issues, seeking always to act in the best interests of our clients. 

Our ethical funds have strict negative criteria, so that if a company is involved in any of the activities on the list below, we will not invest in it. Even if a company passes our positive criteria, it will still be excluded if it fails the negative ones. We never offset one against the other.

In identifying companies that have a harmful effect on the environment and its inhabitants, our ethical funds look at company policies and practices in the following areas:

  • Environmental damage and pollution
  • Marketing breast milk substitutes
  • Testing products on animals
  • Genetic engineering
  • Intensive farming
  • Fur 
  • Operations in countries that violate the political and civil rights of their people, unless the companies’ policies address human rights
  • Pornography
  • Production or sale of weapons
  • Processing of nuclear power
  • Alcohol production
  • Tobacco production
  • Involvement in gambling

We also use positive screening, where we favour companies that are involved in activities that benefit the environment or society, such as developing renewable technology or providing good employee training and development opportunities. In identifying companies that are regarded as having a positive effect on society and the environment, our ethical funds look at whether companies:

  • Make a positive contribution to the environment
  • Promote sound employment practices
  • Promote products and services that benefit the environment or human life
  • Donate to charities or are strongly involved in the community
  • Have clear policies and procedures on bribery and corruption
  • Have a policy that encourages good principles of business behaviour and ethics

Resources, Affiliations & Corporate Strategies

Within our Credit Team, fund management and research is combined, whereby managers are individually accountable for securities held in their portfolios, while at the same time working as a team through review and debate of investment ideas based on the research conducted across each sector. This provides added value in portfolio construction and keeps the Portfolio Managers close to the companies in which they are investing.  

We seek to add value primarily through sector and stock selection, with our style being bottom-up stock pickers. It is important to understand the big picture and to this end, we have identified three key drivers for corporate bond performance: the credit environment, corporate bond issuance trends and our sector analysis.

  • Within the credit environment, we are assessing the economic and investment environment, searching for investment insight that provide opportunities by focusing on where changes in conditions have not been factored in by the markets.  
  • Corporate bond issuance is closely monitored, as this significantly impacts the pricing environment.  
  • What is going on within industrial sectors can also make significant changes to the corporate bond environment.  We also take into account the global nature of some of these sectors, such as the telecoms and utilities industries. Our credit specialists have a close working relationship with our equity colleagues whether they are based in Edinburgh or in one of our global offices. Additionally, our money markets and foreign exchange specialists give us useful input into our assessment of the financial sector. An increasing number of issues are property based in nature and through working with our large Property Team we are able to better understand the quality of the underlying asset pool.

Central to our process is understanding the companies which we invest in. We regularly meet with the Chief Executive and Finance Directors of companies, aided in part by our large presence in the equity markets. These meetings can really add insight above normal bond issues meetings attended by lower level management.  

In relation to our economic and market views, all elements of research are carried out internally. We do use external economists and analysts, but only to ‘stress test’ internally generated ideas and to help determine how the consensus views might be evolving. 

One of the key tools we have developed to monitor credit quality change is our proprietary credit scoring tool, the Credit Matrix. We also use market-leading systems such as UBS Delta to provide relative value analysis across the market so we can gauge how the marketplace is pricing expectations.

In addition, both our Governance & Stewardship and Responsible Investment Teams have a systematic programme of ongoing engagement with companies to encourage and monitor sustainability practices, and to discuss a range of relevant corporate governance issues such as Board balance and composition, remuneration policies, and audit and risk issues. These Teams are closely integrated with our asset class teams and regularly attend company meetings together, providing analysis from both a financial and ESG perspective to get a comprehensive view of the company. Our main ESG data providers are Sustainalytics, Bloomberg, GMI, Institutional Shareholder Services (ISS) and IVIS. Additionally, EIRiS, an independent research agency, is a key system used to determine which companies comply with our strict ethical criteria within our Ethical Funds. We input our negative and positive criteria into the EIRiS web-based database system, which then generates lists of the companies that pass or fail the criteria. We also use the system to identify which companies are rated as “preferred” on the basis of their positive criteria. These ratings are added to our proprietary quantitative models, which are used as a screening input and decision support tool to the stock analysis process using normal investment criteria.

Standard Life SLI Ethical Corporate Bond Pn S4 Negative Ethical Pension UK Fixed Interest 11/03/2013 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Standard Life Inv 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

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Scot Eq Ethical Pn Negative Ethical Pension UK Equity 31/03/1988
FNW Jupiter Ecology Environmentally Themed Life Global Equity 25/07/2006
SLFC Green Pn Environmentally Themed Pension Global Equity 25/06/1992
Fidelity F&C Responsible UK Equity Growth Pn 4 Ethically Balanced Pension UK Equity 30/07/2005
Impax Environmental Markets plc Environmentally Themed Investment Trust Global Equity 22/02/2002 More Info (click to view)

SRI / Ethical Overview

Impax Environmental Markets plc is a London listed investment trust pursuing a long-only global equity strategy investing in pure play - or "specialist" - environmental companies.  The trust has over 80% of the underlying revenue of the portfolio companies generated by sales of environmental products or services. It is also the first listed equity fund to demonstrate a net positive carbon impact.   

  

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)
  • 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.
  • 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.
  • Climate change / GHG policy Considers climate change related issues such as greenhouse gas/carbon emissions. Funds that consider such issues typically require careful management of such issues in order for a company to be considered acceptable/attractive.
  • 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

  • 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.
  • Specialist/boutique fund manager The fund management company that offers this fund specialises in SRI or sustainability focused investment options. They are likely to be a smaller but more focused business and unlikely to have significant investment in companies that are typically avoided by SRI/ethical funds.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • Faith friendly These funds are likely to have attributes that some faith based investors may welcome such as opposition to armaments, gambling and alcohol.

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

Impax Environmental Markets plc is solely focused on investing in Resource Efficiency and Environmental Markets. The trust applies a positive screening approach to companies operating within these diverse high growth markets.

Resources, Affiliations & Corporate Strategies

We are members of, or signatory to the following:

  • UN Principles for Responsible Investment (UNPRI)

  • Institutional Investors Group on Climate Change (IIGCC)

  • Investor Network on Climate Risk (INCR)

  • Carbon Disclosure Project (CDP)

  • UK Sustainable Investment and Finance Association (UKSIF)

  • USSIF

  • UK Stewardship Code

  • Global Impact Investing Network (GIIN)

    Impax Asset Management has also been awarded a Queen’s Award for Enterprise: Sustainable Development, the UK’s highest business accolade for business success.

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

SRI / Ethical Overview

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

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

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

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

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

SRI Policies (Primary strategy in bold)

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SRI Features

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Corporate Activity

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

SRI / Ethical Policy

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

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

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

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

Resources, Affiliations & Corporate Strategies

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

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


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

NextEnergy Solar Fund Limited Red Ord Npv Environmentally Themed Investment Trust UK Equity 24/04/2014
Pru Kames Ethical Equity Pn Ser A Negative Ethical Pension UK Equity 19/10/2008 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Royal London Sustainable Leaders Trust Sustainability Themed OEIC/Unit Trust UK Equity 28/05/1990 More Info (click to view)

SRI / Ethical Overview

A Trust that is focusing on the core themes of the environment, human welfare and sustainability to generate superior investment returns. The trust aims to provide first quartile performance over a rolling three year period measured against the UK All Companies sector. The Trust also aims to outperform the FTSE All-Share index.

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.)

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

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'.

SRI / Ethical Policy

The selection process works on two levels as outlined below:

Firstly, we look for companies with products or services with a net positive benefit to society. Once found we check the environmental, social and governance practices of the company to ensure it is suitable for inclusion in the Trust. It is however the product or service angle that is the preferred driver for inclusion.

The second level is looking for companies that are leaders in sustainable business practices within their industries. This involves looking at the key environmental and social issues relating to a sector, assessing how each company in that sector manages those issues then selecting the best performing companies for inclusion in the investment universe.

Good corporate governance is irreducible: companies with good environmental credentials but unacceptable corporate governance will not be invested in. The overall focus on companies that manage their impacts and stakeholders effectively is a tool of good risk management and protects the fund relatively well from governance and reputation-related scandals.

Resources, Affiliations & Corporate Strategies

Sustainability research is primarily conducted internally. As our approach to sustainable investing is unique to these funds we feel better able to make judgements about the suitability of investments than external providers of research. From a financial perspective the process is again primarily internal however we will use broker research as an input into the overall decision making.

RLAM has significant resources devoted to the evaluation of ESG issues. The team is headed by Niall O’Shea and he is supported by three analysts focusing on corporate governance and responsible investment. This team has considerable experience of assessing ESG risk, engaging with companies and championing ESG in a wider context.

The Trust also benefits from an independent external Advisory Committee since its inception which independently approves the investment universe. This committee is multi-disciplinary, consisting of experts in areas such as the environment, governance and Socially Responsible Investing. They are independent of RLAM and advise on companies in the approved universe, giving their views, especially if they believe that a company is no longer suitable.

The Committee meets quarterly to review the research process and output of the team. It receives reports on sectors, companies and topical issues, advises on the approval and exclusion of companies from the investmentuniverse, discusses the Trust’s financial performance, and topical issues relevant to the Trust, such as the nuclear debate. It is also responsible for ensuring that the criteria and spirit of the Trust are observed.

Zurich Ethical CS1 Unclassified Pension Global Equity 23/01/2012
Henderson ESG Integration Corporate Activity Not Set Unclassified 29/01/2016 More Info (click to view)

SRI / Ethical Overview

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

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

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

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

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

SRI Policies (Primary strategy in bold)

-

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

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

Resources, Affiliations & Corporate Strategies

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

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

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

Halifax Ethical C Ethically Balanced OEIC/Unit Trust Global Equity 07/01/1994
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

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Corporate Activity

-

Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

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

OMW F&C Responsible UK Equity Income Ethically Balanced Life UK Equity Income 28/09/2005
Aegon Ethical Lifestyle Pn ARC Negative Ethical Pension UK Equity 31/05/2016
Jupiter Responsible Income Acc Environmentally Themed OEIC/Unit Trust UK Equity Income 22/11/1999 More Info (click to view)

SRI / Ethical Overview

The Jupiter Responsible Income Fund focuses on investing in UK companies that are actively managing their environmental and social impact: good governance companies. The Fund will specifically avoid investing in companies associated with armaments, tobacco, nuclear power and animal testing for toiletries and cosmetics. Companies’ investment and financial prospects are assessed by the Jupiter Environmental Investment Team.

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.
  • 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.)
  • 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.

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.
  • Balances company 'pros and cons'/best in sector This fund manager will look at both the 'positive' things companies do and the 'negative' things they do. They will make balanced judgements, in line with their published strategy, before deciding whether or not to invest. Such funds often invest in the best/most ethical companies across most industries, rather than excluding entire sectors. The fund manager may couple this with 'responsible engagement' activity, where they aim to encourage better, more responsible business practices.
  • Eurosif transparency This fund has met the standards of the EUROSIF transparency Code. This means that they are a leading fund in terms of openness and transparency, publishing - for example - extensive information about where they invest and how they deal with companies.
  • Limited/few ethical exclusions This fund avoids companies based on limited list of ethical exclusions (relative to other ethical funds)

Corporate Activity

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SRI / Ethical Policy

The Jupiter Responsible Income Fund typically invests in companies that fall into one of two categories:

  • those that are actively managing their environmental and social impacts: good governance companies; or
  • those that are providing solutions to environmental and social problems.

Good governance companies are analysed under the following headings:

Leading company assessment: Companies that demonstrate leading practice amongst their industry peers in terms of policies, processes or performance in the areas of Corporate Responsibility and are demonstrating a commitment to managing their impacts and reporting on progress.

High impact companies: This includes companies operating in sectors with potentially high environmental and social impacts, such as the resources sector, which includes mining and oil & gas businesses. For inclusion in the Fund, these companies in particular are required to demonstrate outstanding practices in the areas mentioned above relative not only to their peer group but across all sectors. Where appropriate, emphasis is placed on engagement with high impact companies on such issues prior to taking a holding. Resource sector companies are also considered favourably if a significant part of their business is explicitly involved in providing environmental solutions. 

Limited impact company assessment: Companies that have low environmental impacts and manage these appropriately.

Small company assessment: Companies whose management have a commitment to improve environmental performance and can demonstrate that key social and environmental risks are managed well.

Continuous improvers: These companies have not yet reached leading company status but are typically working towards continuous improvement in policies, processes or performance in the areas of Corporate Responsibility and are demonstrating a commitment to managing their impacts and reporting on progress.

The Fund will be allowed to invest in almost all sectors of the stock market, including those companies whose products and services do not contribute directly to sustainable development.

The Jupiter Responsible Income Fund seeks to avoid investment in any company that is involved in activities which are believed to be incompatible with its environmental and social goals.
Examples of such negative activities include:

  • Manufacture of armaments;
  • Manufacture or sale of tobacco products; and
  • Generation of nuclear power.

Resources, Affiliations & Corporate Strategies

Ethical and environmental screening for the Jupiter Responsible Income 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 

Charishare Restricted Acc (Blackrock Investment Managers UK Ltd) Ethically Balanced OEIC/Unit Trust UK Equity 29/05/1997
Stewart Investors Asia Pacific Sustainability A GBP Acc Sustainability Themed OEIC/Unit Trust Asia Pacific Equity 19/12/2005 More Info (click to view)

SRI / Ethical Overview

The Stewart Investors sustainability portfolios aim to generate long-term, risk-adjusted returns for our clients by investing in the shares of those quality companies which are particularly well positioned to benefit from, and contribute to, the sustainable development of the countries in which they operate. We regard sustainability as a key driver of investment performance and do not run ethical investment strategies that traditionally screen out particular companies.

 

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

  • 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.

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 Stewart Investors sustainability portfolios aim to generate long-term, risk-adjusted returns for our clients by investing in the shares of those quality companies which are particularly well positioned to benefit from, and contribute to, the sustainable development of the countries in which they operate. We regard sustainability as a key driver of investment performance and do not run ethical investment strategies that traditionally screen out particular companies.

 

SRI / Ethical Policy:

Sustainability is an integral component of the our investment process, and is viewed as a driver of returns in common with consideration of other investment factors.

There are four key stages:
 

Step 1: Company classification

Potential investment opportunities are classified into one of three sustainability themes: sustainable goods and services, responsible finance or required infrastructure. This classification is designed to help us clarify the long-term sustainability positioning of different types of businesses. They are not a formal screen. Companies are categorised in order to assist in determining the critical sustainability issues to apply to our fundamental analysis. 
 

Step 2: Quality assessment

The quality assessment covers three distinct elements:

A.  Quality of management

Emphasis is placed on the existence of long term alignment between company management and minority shareholders. 

B.  Quality of the franchise

We consider factors including brand and market share, pricing power and competitive advantage. 

C.  Quality of the financials

A long term view is taken in evaluating how the company has performed over the economic cycle and its ability grow cash flows over the long term.

We seek to ensure the potential impact of relevant ESG liabilities and costs are understood.
 

Step 3: Valuation and portfolio construction

Portfolio construction is a function of quality, liquidity and price. We analyse as broad a range of valuation metrics as possible to establish a sensible estimate of what a share is worth. There are investment controls, portfolio construction parameters and risk monitoring systems in place.
 

Step 4: Invest, monitor and engage

A significant amount of time is dedicated to engaging with the management team of the company. The team considers it their responsibility to address matters relating to the environment, human rights or social issues directly with management.

Please refer to the investment strategy document for further details on our investment process:

Resources, Affiliations & Corporate Strategies

Our research process fully incorporates a detailed assessment of ESG issues as they relate to a company’s financial, franchise and management quality. Many ideas begin with a written meeting note on a company. The most promising will be followed by a company report exploring various aspects of a company’s quality, including corporate governance practices and alignment. We focus on a company’s history to understand how its strategy has evolved. Company reports are reviewed over email and debated at team meetings 

Company visits are integral to our research. Meetings typically take place, on a one-to-one basis, with senior and operational management and focus on gaining deeper knowledge of management and franchise quality, balance sheet strength and the long-term growth strategy. Meetings are used to gauge management values and ability to execute by emphasising historic, cultural and ethical issues. We visit the majority of companies at least once before we invest. 

External Research

The use of external research is very limited. We have relationships with independent research houses and occasionally commission bespoke sustainability research. 

Finally, we also have ESG contacts in our markets, including company, government and NGO representatives. These organisations provide us with a different perspective on key ESG trends and how companies are reacting to change.

Aviva Alliance Trust Sustainable Future UK Growth S1 Sustainability Themed Life UK Equity 24/06/2001
Aviva Alliance Trust Sustainable Future Managed S1 Sustainability Themed Life Global Mixed Asset 24/06/2001
Wesleyan Ethical Shares Pn Negative Ethical Pension UK Equity 19/12/2011 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

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SRI / Ethical Policy

Invests via Kames Ethical Equity fund

Resources, Affiliations & Corporate Strategies

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

SRI / Ethical Overview

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

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. Funds that consider such issues typically require careful management of such issues in order for a company to be considered acceptable/attractive.
  • 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

  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Balances company 'pros and cons'/best in sector This fund manager will look at both the 'positive' things companies do and the 'negative' things they do. They will make balanced judgements, in line with their published strategy, before deciding whether or not to invest. Such funds often invest in the best/most ethical companies across most industries, rather than excluding entire sectors. The fund manager may couple this with 'responsible engagement' activity, where they aim to encourage better, more responsible business practices.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Favours 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

At BMO Global Asset Management, we have been a leader in the development of sustainable investment strategies for almost three decades. Responsible Investment is central to our corporate identity and integral to our global investment philosophy.

Ethical considerations are becoming increasingly important in the mind set of many investors. In addition, there is also a growing consensus that the best long term performance will come from those companies that take their wider ethical, environmental and social responsibilities seriously. The fund provides an investment medium for people who do not regard financial gain as the sole criterion for investment, but look to wider issues. It seeks to invest in UK companies offering attractive growth and income characteristics, avoiding investment in those that have harmful effects.

Positive and negative screening is undertaken to identify stocks suitable for inclusion in the fund’s investment universe. We have an extensive policy on ethical screening and we have provided a snapshot of the criteria below:

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 Governance and Sustainable Investment team (GSI team) has a quarterly monitoring system to identify:

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

Resources, Affiliations & Corporate Strategies

The F&C Responsible UK Equity Growth Fund is managed by three distinct teams with the process led by the Investment Management team.

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

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

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

BMO Global Asset Management (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.

SWIS Ethical Ethically Balanced Life Global Equity 31/10/2000
FL F&C Responsible UK Equity Growth AL Ethically Balanced Life UK Equity 13/05/2007
Aviva Royal London Sustainable Leaders S4 Sustainability Themed Life UK Equity 05/04/2006
Zurich Sterling Henderson Global Care Growth Sustainability Themed Life Global Equity 04/12/2000
FL Stewardship Income Pn NGP Ethically Balanced Pension UK Equity Income 31/03/2005
FL Stewardship Ethically Balanced Life UK Equity 31/05/1984 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

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Corporate Activity

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

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

CF Drygate Unclassified OEIC/Unit Trust Global Mixed Asset 03/03/2003
Aviva Royal London Sustainable Leaders Trust S4 Sustainability Themed Life UK Equity 27/11/2007
FL F&C Responsible UK Equity Income AP Ethically Balanced Pension UK Equity Income 01/02/2007
FL Ethical Safeguard Optimiser S2 Ethically Balanced Life UK Equity 08/04/2009
SL Kames Ethical Corporate Bond S5 Negative Ethical Life UK Fixed Interest 08/02/2006
Aviva F&C Responsible Global Equity Pn S6 Ethically Balanced Pension Global Equity 28/09/2008
OMW Ethical Pn Negative Ethical Pension Global Equity 17/02/1992
Aviva Royal London Select Portfolio (20-60% Shares) Sustainability Themed Life Europe >50% UK Mixed Asset 05/04/2006
SLFC (Citibank) Green 1 Environmentally Themed Life Global Equity 29/06/1992
EdenTree Amity Sterling Bond A Ethically Balanced OEIC/Unit Trust UK Fixed Interest 04/03/2008 More Info (click to view)

SRI / Ethical Overview

The Fund aims to provide an attractive level of income. The Fund seeks to invest in a highly diversified portfolio of Government and good quality fixed interest securities issued by 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 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. Funds that consider such issues typically require careful management of such issues in order for a company to be considered acceptable/attractive.
  • 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.
  • 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.
  • Specialist/boutique fund manager The fund management company that offers this fund specialises in SRI or sustainability focused investment options. They are likely to be a smaller but more focused business and unlikely to have significant investment in companies that are typically avoided by SRI/ethical funds.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • 'Strictly' screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.

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

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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.

Ecclesiastical 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

We seek to invest in companies that demonstrate a responsible approach in some or all of the
following areas:

  • Business practices - follow ethical practices towards customers, including maintaining product quality, ethical sources of supply, opposing corruption and respecting indigenous peoples.
  • Community relations - make charitable donations, employ local people, offer work placement schemes.
  • Corporate governance practices - commit to transparency, anti-bribery and corruption codes, adhering to International Labour Organisation regulations on labour and child labour.
  • Education - provide training and development along with access to education.
  • Environmental management - Support biodiversity, manage their climate change impact and carbon footprint, water conservation, air pollution and manage waste and recycling, and support renewable energy.
  • Healthcare - provide affordable healthcare and access to medicine.
  • Human rights - support basic human rights by adopting the United Nations Universal Declaration of Human Rights.
  • Labour relations - promote equal opportunity and diversity, health and safety, transparent pay
  • Ethical criteria we apply to our funds structures, union participation, professional development, employee participation and protection.
  • Urban regeneration - support affordable/social housing.

We believe that using positive screening helps to identify good quality, long-term investment opportunities. The companies that we seek to invest in produce products and services that help provide some of the necessities of life such as water, health, education, or help impact positively on the environment. We believe that companies who trade using fair practices and sustainable business models are more likely to survive and prosper in the future.

Negative screening

We avoid companies, whose activities derive 10% or more of pre-tax profit or turnover from alcohol production, gambling operations, pornographic and violent material, tobacco production, strategic armaments, animal testing (cosmetic and household products) and intensive farming. In addition we seek to develop industry thinking on ethical investment matters, through the publication of our detailed research reports, “Amity Insight”, which look at issues such as oil-related investments, global healthcare practices and trends, and sustainable cocoa production. The Amity Insight range can be found on our website or we would be happy to provide hard copies on request.

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 Ecclesiastical 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

Resources, Affiliations & Corporate Strategies

We use Sustainalytics as our ESG date provider and Glass Lewis on our overseas voting. We use Freedom House and Transparency International and other NGO data to augment our internal research. Partnerships include the following – Stewardship Code, UNPRI, ATNI, CDP, EITI, BBFAW, Forest Footprint Disclosure Project, 30% Club, ECCR, UKSIF, Institutional Information Voting Service and European SRI Transparency Code. http://www.ecclesiastical.com/forifas/ethicalexperts/partnerships/index.aspx

The integrated approach at EIM ensures that the investment team has full ownership and responsibility over stock selection and portfolio construction. The Fund Manager and the senior investment analyst work together along with the wider investment team to ensure the non-financial and financial criteria are fully considered when making a recommendation and investment in a company.

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

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Corporate Activity

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Impax Environmental Leaders Environmentally Themed SICAV/Offshore* Global Equity 01/01/2016 More Info (click to view)

SRI / Ethical Overview

The Impax Environmental Leaders (Ireland) Fund seeks to achieve sustainable, above market returns over the longer term by investing globally in companies active in the growing Resource Efficiency and Environmental Markets. These markets address a number of long term macro-economic themes: growing populations, rising living standards, increasing urbanisation, rising consumption, and depletion of limited natural resources.

Investments are made in companies which have >20% of their underlying revenue generated by sales of environmental products or services in the energy efficiency, renewable energy, water, waste and sustainable food and agriculture markets.

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)

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).
  • 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.
  • Specialist/boutique fund manager The fund management company that offers this fund specialises in SRI or sustainability focused investment options. They are likely to be a smaller but more focused business and unlikely to have significant investment in companies that are typically avoided by SRI/ethical funds.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • Faith friendly These funds are likely to have attributes that some faith based investors may welcome such as opposition to armaments, gambling and alcohol.

Corporate Activity

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SRI / Ethical Policy

Impax Environmental Leaders Fund is solely focused on investing in Resource Efficiency and Environmental Markets. The Fund applies a positive screening approach to companies operating within these diverse high growth markets.

The Fund also has revenue exposure hurdles in place for certain business activities: tobacco, weapons, gambling, animal testing of cosmetics, adult entertainment and alcohol.  

Fossil fuel assets do not come into the opportunity set of this fund.

Resources, Affiliations & Corporate Strategies

We are members of, or signatory to the following: 

  • UN Principles for Responsible Investment (UNPRI)
  • Institutional Investors Group on Climate Change (IIGCC)
  • Investor Network on Climate Risk (INCR)
  • Carbon Disclosure Project (CDP)
  • UK Sustainable Investment and Finance Association (UKSIF)
  • USSIF
  • UK Stewardship Code
  • Global Impact Investing Network (GIIN)

Impax Asset Management has also been awarded a Queen’s Award for Enterprise: Sustainable Development, the UK’s highest business accolade for business success.

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

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

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)
  • 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.
  • 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. Funds that consider such issues typically require careful management of such issues in order for a company to be considered acceptable/attractive.
  • 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.

L&G Ethical Global Equity Index Pn Sustainability Themed Pension Global Equity 10/05/2010
FL Stewardship Pn Acc Ethically Balanced Pension UK Equity 31/05/1984 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

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Corporate Activity

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Engage Mutual Green Chip Sustainability Themed Life UK Mixed Asset 24/11/1989
FNW Kames Ethical Corporate Bond Negative Ethical Life UK Fixed Interest 20/07/2006
FNW Standard Life Ethical Negative Ethical Life UK Equity 13/12/2005
OMW Kames Ethical Equity Pn Negative Ethical Pension UK Equity 31/01/2006 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

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

7IM Sustainable Balance C Acc Sustainability Themed OEIC/Unit Trust Global Mixed Asset 02/02/2007 More Info (click to view)

SRI / Ethical Overview

Best in Class ESG strategy

High risk areas of production and manufacturing excluded:

  • Tobacco
  • Armaments
  • Pornography
  • Nuclear
  • Genetically modified organisms

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.
  • 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.
  • 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.)
  • 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.
  • Balances company 'pros and cons'/best in sector This fund manager will look at both the 'positive' things companies do and the 'negative' things they do. They will make balanced judgements, in line with their published strategy, before deciding whether or not to invest. Such funds often invest in the best/most ethical companies across most industries, rather than excluding entire sectors. The fund manager may couple this with 'responsible engagement' activity, where they aim to encourage better, more responsible business practices.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • Limited/few ethical exclusions This fund avoids companies based on limited list of ethical exclusions (relative to other ethical funds)

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

To measure these criteria, the industry from which an investment has been made and the position of the investment relative to its peer group are analysed. The social aspects of companies’ relationships with suppliers, the general public, employees, clients and competitors are considered. The environmental aspects of pre-production sourcing, production processes, products and services, as well as the environmental management systems are also examined.

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

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

Resources, Affiliations & Corporate Strategies

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

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

7IM controls the overall asset allocation of the fund both strategic, keeping it within IA sector guidelines (Mixed assets sector 20-60% equities), within a balanced risk profile as defined by 7IM and tactical, tilting the asset categories to try to improve returns over and above what the strategic asset allocation would imply.

Scottish Widows (SWIP) Responsible Ownership Corporate Activity Not Set Unclassified 01/03/2013 More Info (click to view)

SRI / Ethical Overview

SWIP (Scottish Widows) engage on all equity mixed and property 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

Premier Ethical R Inc Ethically Balanced OEIC/Unit Trust UK Equity 06/07/1986
Stewart Investors Worldwide Sustainability A Inc GBP Acc Sustainability Themed OEIC/Unit Trust Global Equity 31/10/2012 More Info (click to view)

SRI / Ethical Overview

The Stewart Investors sustainability portfolios aim to generate long-term, risk-adjusted returns for our clients by investing in the shares of those quality companies which are particularly well positioned to benefit from, and contribute to, the sustainable development of the countries in which they operate. We regard sustainability as a key driver of investment performance and do not run ethical investment strategies that traditionally screen out particular companies.

 

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.

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

Sustainability is an integral component of the our investment process, and is viewed as a driver of returns in common with consideration of other investment factors.

There are four key stages:

Step 1: Company classification

Potential investment opportunities are classified into one of three sustainability themes: sustainable goods and services, responsible finance or required infrastructure. This classification is designed to help us clarify the long-term sustainability positioning of different types of businesses. They are not a formal screen. Companies are categorised in order to assist in determining the critical sustainability issues to apply to our fundamental analysis.
 

Step 2: Quality assessment

The quality assessment covers three distinct elements:

A.  Quality of management

Emphasis is placed on the existence of long term alignment between company management and minority shareholders.

B.  Quality of the franchise

We consider factors including brand and market share, pricing power and competitive advantage.

C.  Quality of the financials

A long term view is taken in evaluating how the company has performed over the economic cycle and its ability grow cash flows over the long term.

We seek to ensure the potential impact of relevant ESG liabilities and costs are understood.

Step 3: Valuation and portfolio construction

Portfolio construction is a function of quality, liquidity and price. We analyse as broad a range of valuation metrics as possible to establish a sensible estimate of what a share is worth. There are investment controls, portfolio construction parameters and risk monitoring systems in place.

Step 4: Invest, monitor and engage

A significant amount of time is dedicated to engaging with the management team of the company. The team considers it their responsibility to address matters relating to the environment, human rights or social issues directly with management.

Please refer to the investment strategy document for further details on our investment process:

 

 

Resources, Affiliations & Corporate Strategies

Investment ideas are generated on an on-going basis by extensive company visits, research trips, industry contacts, on-going debate and some third party research. Our research process fully incorporates a detailed assessment of ESG issues as they relate to a company’s financial, franchise and management quality. 

Many ideas begin with a written meeting note on a company. The most promising will be followed by a company report, which takes between 1-2 months to write, exploring various aspects of a company’s quality, including corporate governance practices and alignment. We focus on a company’s history to understand how its strategy has evolved. Company reports are reviewed over email and debated at team meetings 

Company visits are integral to our research. Meetings typically take place, on a one-to-one basis, with senior and operational management and focus on gaining deeper knowledge of management and franchise quality, balance sheet strength and the long-term growth strategy. Meetings are used to gauge management values and ability to execute by emphasising historic, cultural and ethical issues. We visit the majority of companies at least once before we invest. 

External Research

The use of external research is very limited. We have relationships with independent research houses, including Ethix, Trucost and RepRisk, and occasionally commission bespoke sustainability research. 

Finally, we also have ESG contacts in our markets, including company, government and NGO representatives. These organisations provide us with a different perspective on key ESG trends and how companies are reacting to change

Standard Life Inv European Ethical Equity Ret Negative Ethical OEIC/Unit Trust Europe Ex-UK Equity 23/09/2007 More Info (click to view)

SRI / Ethical Overview

The European Ethical Equity Fund aims to provide long-term growth by investing in a diversified portfolio of European (excluding UK) equity assets that meet our strict ethical criteria. The Fund is actively managed by our investment team, utilising a bottom-up, fundamental investment process that is both research intensive and risk aware. The Portfolio Manager excludes companies that fail to meet our ethical criteria while seeking to include companies whose business activities are regarded as making a positive contribution to society. These criteria are agreed with the Standard Life Ethical Funds Advisory Group and may be amended from time to time.

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. Funds that consider such issues typically require careful management of such issues in order for a company to be considered acceptable/attractive.
  • 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

  • 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.
  • 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.
  • 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.

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'.

SRI / Ethical Policy

At Standard Life Investments, we firmly believe that companies demonstrating a commitment to sound governance and sustainable investment will likely enjoy comparative advantages in the long run. We are determined to continually improve our processes and strengthen our commitment to fulfilling our governance and stewardship responsibilities and to actively engage with companies to promote and develop global standards on many issues, seeking always to act in the best interests of our clients. 

Our ethical funds have strict negative criteria, so that if a company is involved in any of the activities on the list below, we will not invest in it. Even if a company passes our positive criteria, it will still be excluded if it fails the negative ones. We never offset one against the other.

In identifying companies that have a harmful effect on the environment and its inhabitants, our ethical funds look at company policies and practices in the following areas:

  • Environmental damage and pollution
  • Marketing breast milk substitutes
  • Testing products on animals
  • Genetic engineering
  • Intensive farming
  • Fur 
  • Operations in countries that violate the political and civil rights of their people, unless the companies’ policies address human rights
  • Pornography
  • Production or sale of weapons
  • Processing of nuclear power
  • Alcohol production
  • Tobacco production
  • Involvement in gambling

We also use positive screening, where we favour companies that are involved in activities that benefit the environment or society, such as developing renewable technology or providing good employee training and development opportunities. In identifying companies that are regarded as having a positive effect on society and the environment, our ethical funds look at whether companies:

  • Make a positive contribution to the environment
  • Promote sound employment practices
  • Promote products and services that benefit the environment or human life
  • Donate to charities or are strongly involved in the community
  • Have clear policies and procedures on bribery and corruption
  • Have a policy that encourages good principles of business behaviour and ethics

Resources, Affiliations & Corporate Strategies

Standard Life Investments has had a long history of taking ESG issues into account. We have heavily invested in resources dedicated to the analysis of ESG themes. In particular, we have two teams focusing on the integration of these issues into our investment process: 1) our Governance & Stewardship Team, who analyses how a company is governed and implements an active voting process, and 2) our Responsible Investment Team, who assess companies on sustainability issues. 

Within our regional equity teams, fund management and research is a combined role, whereby each equity manager is individually accountable for stocks held in their portfolios, while at the same time working as a team through review and debate of investment ideas based on the research they have conducted in each sector. Each of our regional equity teams (UK, Europe, North America and GEM/Asia) is organised in this way, creating a common research platform for all equity products where analysis and resources are freely shared.

The vast majority of our investment ideas are generated from information and analysis from one-on-one company meetings. Collectively, more than 3,000 company meetings are conducted annually across Standard Life Investments. These meetings are used to ascertain the company’s own views and expectations of the future prospects for their company and the markets in which they invest. External secondary research is also generated to gain insight on the consensus view and supplement our own proprietary research. This includes the use of industry experts such as Gerson Lehrman Group (GLG), and the Coleman Research Group, to challenge and test our theses in specialist products or developing new areas. The sell-side research available in the market provides a useful gauge as to what is already known or priced in by the markets.

In addition, both our Governance & Stewardship and Responsible Investment Teams have a systematic programme of ongoing engagement with companies to encourage and monitor sustainability practices, and to discuss a range of relevant corporate governance issues such as Board balance and composition, remuneration policies, and audit and risk issues. These Teams are closely integrated with our asset class teams and regularly attend company meetings together, providing analysis from both a financial and ESG perspective to get a comprehensive view of the company. Our main ESG data providers are Sustainalytics, Bloomberg, GMI, Institutional Shareholder Services (ISS) and IVIS. Additionally, EIRiS, an independent research agency, is a key system used to determine which companies comply with our strict ethical criteria within our Ethical Funds. We input our negative and positive criteria into the EIRiS web-based database system, which then generates lists of the companies that pass or fail the criteria. We also use the system to identify which companies are rated as “preferred” on the basis of their positive criteria. These ratings are added to our proprietary quantitative model, which used by our regional equity investors as a screening input and decision support tool to their stock analysis process using normal investment criteria.

Ultimate accountability for the investment decisions within the portfolio is the responsibility of the appointed Portfolio Manager.

Foresight Solar & infrastructure VCT PLC D Environmentally Themed Investment Trust Global Equity 06/04/2016
Zurich UK Opportunities 2 EL Unclassified Life UK Equity 08/10/1990 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

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Corporate Activity

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SRI / Ethical Policy

Fund objective The fund seeks to invest in well governed companies with prospects for growth. The fund invests primarily in the UK but there may be some investment in overseas companies. Fund availability This fund was known as Zurich Environmental Opportunities EL until 17 October 2011. Fund features This fund invests in assets which tend to produce the highest level of return but with higher risk. Over the longer term these assets should generate superior growth. There will be greater fluctuations in value, which at times may be dramatic.

Resources, Affiliations & Corporate Strategies

Royal London Ethical Bond A Ret Ethically Balanced OEIC/Unit Trust UK Fixed Interest 31/01/2007 More Info (click to view)

SRI / Ethical Overview

The fund seeks to achieve a combination of income and capital growth over the medium to long term. The Ethical Bond Fund invests predominantly in investment grade UK corporate bonds which meet predefined ethical criteria. A specialist independent consultancy, EIRiS, conducts ethical screening of issuing companies. 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 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.
  • 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.)

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

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'.

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

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 UK Ethical Equity 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.

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

Resources, Affiliations & Corporate Strategies

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

  • Audited & unaudited financial accounts
  • Ratings reports/analysis
  • Company meetings/presentations
  • Third party equity/credit research
  • Specific investor reports
  • Regulatory News Service – ‘Investigate’

In addition, ongoing surveillance is supplemented by dynamic alerts from issuer websites and Companies House.

The credit team also employs a range of models, both external and bespoke. Some of which are included below:

  • Credit analysis model – Provision of historic and forecast credit ratios and debt/liquidity analysis; bespoke template for different sectors.
  • Covered bond model - Relative valuation of covered vs senior bank bonds; monitoring of UK mortgage market.
  • RMBS model - Comparison of RMBS deals - specific modelling of asset covers on default scenarios
  • CMBS/WBS model - Tailored template for analysis of Issuer/Borrower note structures.

The main external providers of information are:

  • Bloomberg, which is used for bond analytics and descriptive data, including bond documentation andaccess 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.

Our team structure and overlap between the research and fund manager functions ensures that the stock selection process 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.

Aviva Royal London Sustainable World Trust S4 Sustainability Themed Life Global Mixed Asset 22/11/2010
WAY Green Portfolio Way Ret Inc Environmentally Themed OEIC/Unit Trust Global Equity 01/02/2010
FL Conscience Pn (xNM) Ethically Balanced Pension UK Equity 31/08/1987
EdenTree Amity Balanced Fund for Charities Ethically Balanced OEIC/Unit Trust Global Mixed Asset 03/04/2011
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

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

FL Ethical Safeguard Optimiser Ethically Balanced Life UK Equity 10/06/2004
RLP UK Ethical Pn Unclassified Pension UK Equity 01/11/1999
Aviva Kames Ethical Corporate Bond Pn S6 Negative Ethical Pension Global Fixed Interest 28/09/2008 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Engage Mutual FTSE4 Good Sustainability Themed Life UK Unclassified 01/12/1998
WHEB Listed Equity Responsible Ownership Corporate Activity Not Set Unclassified 29/01/2016 More Info (click to view)

SRI / Ethical Overview

For us sustainable investment embodies an attitude to investment that shapes every aspect of our operations. First and foremost this is about our investment process itself. At a high level, our thematic framework is designed to identify companies that provide solutions to sustainability challenges, and in so doing contribute to, and benefit from, growth in sustainable forms of development.  Our integrated approach to ESG analysis also enables us to identify better quality stocks.  

A second critical factor of our approach is that we have a long-term attitude to investment with a current realized average holding period of over five years. We believe this is key to our investment process and allows us to see company engagement and Stewardship as an important input into our investment process.  Specifically we see engagement with companies as a means by which we can gain insight into a company and its management. The way in which a company’s management responds to specific challenges raised through the engagement process can reveal a great deal about that company’s attitude to its stakeholders, risk and other issues. 

In addition, engagement is also an ‘output’ from our investment process in that it allows investors to feel more connected to the companies they hold via our fund, and to know that we are working on their behalf to make companies more responsible in the way they do business.  

For more information see:
Our Stewardship Statement: http://www.whebgroup.com/media/2014/09/201409-Stewardship-code-disclosure-statement.pdf
Our Quarterly Engagement and Voting reports: http://www.whebgroup.com/investment-strategies/listed-equity/fund-governance/engagement-and-voting-records/ 
Our Group Responsible Investment Policy: http://www.whebgroup.com/media/2013/11/WHEB-Group-Responsible-Investment-Policy.pdf 
Independent Investment Advisory Committee Minutes: http://www.whebgroup.com/investment-strategies/listed-equity/fund-governance/investment-advisory-committee-minutes/ 
Eurosif Transparency Code Submission: http://www.whebgroup.com/media/2013/10/2015-WHEB-AM-Transparency-Code-Submission-Final-1.pdf
UNPRI Transparency Report: http://www.whebgroup.com/media/2015/12/2014_Public_Transparency_Report_WHEB-Group.pdf  


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

SRI Policies (Primary strategy in bold)

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SRI Features

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Corporate Activity

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

SRI / Ethical Policy

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

Resources, Affiliations & Corporate Strategies

We use ISS for research on governance and voting.

Each analyst carries out stewardship and governance activities on the stocks for which they are responsible, under the guidance of Seb Beloe, Head of Research.

Decision making is carried out collectively by the team, led by Fund Manager, Ted Franks.

We are involved with and support a range of industry initiatives and thought leadership groups, including UNPRI, IIGCC, UKSIF, EUROSIF, FRC Stewardship Code, CDP, Tomorrows Capital Markets, Sustainable Stock Exchanges and International Integrated Reporting Framework.  See http://www.whebgroup.com/about-us/thought-leadership/ for more

 

Scot Wid Environmental Pn S2 Environmentally Themed Pension UK Equity 28/07/2000 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Scot Wid Environmental Investor" 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)

  • Environmental policy Has a policy which states that the fund considers environmental issues (e.g. pollution, climate change, resource management, environmental impact)

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

FL F&C Responsible Sterling Bond Pn Ethically Balanced Pension UK Fixed Interest 29/09/2010
Royal London Sustainable World Trust Sustainability Themed OEIC/Unit Trust Global Mixed Asset 20/09/2009 More Info (click to view)

SRI / Ethical Overview

The Trust aims to invest 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, applying this principle across different geographies and asset classes (primarily equities with some fixed income, securities and cash.). Financially the aim is to provide a hurdle rate of return in the region of 6-8% per annum over the medium term.

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.)

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

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'.

SRI / Ethical Policy

The selection process works on two levels as outlined below:

Firstly, we look for companies with products or services with a net positive benefit to society. Once found we check the environmental, social and governance practices of the company to ensure it is suitable for inclusion in the Trust. It is however the product or service angle that is the preferred driver for inclusion.

The second level is looking for companies that are leaders in sustainable business practices within their industries. This involves looking at the key environmental and social issues relating to a sector, assessing how each company in that sector manages those issues then selecting the best performing companies for inclusion in the investment universe.

Good corporate governance is irreducible: companies with good environmental credentials but unacceptable corporate governance will not be invested in. The overall focus on companies that manage their impacts and stakeholders effectively is a tool of good risk management and protects the fund relatively well from governance and reputation-related scandals.

Resources, Affiliations & Corporate Strategies

Sustainability research is primarily conducted internally. As our approach to sustainable investing is unique to these funds we feel better able to make judgements about the suitability of investments than external providers of research. From a financial perspective the process is again primarily internal however we will use broker research as an input into the overall decision making.

RLAM has significant resources devoted to the evaluation of ESG issues. The team is headed by Niall O’Shea and he is supported by three analysts focusing on corporate governance and responsible investment. This team has considerable experience of assessing ESG risk, engaging with companies and championing ESG in a wider context.

The Trust also benefits from an independent external Advisory Committee since its inception which independently approves the investment universe. This committee is multi-disciplinary, consisting of experts in areas such as the environment, governance and Socially Responsible Investing. They are independent of RLAM and advise on companies in the approved universe, giving their views, especially if they believe that a company is no longer suitable.

The Committee meets quarterly to review the research process and output of the team. It receives reports on sectors, companies and topical issues, advises on the approval and exclusion of companies from the investment universe, discusses the Trust’s financial performance, and topical issues relevant to the Trust, such as the nuclear debate. It is also responsible for ensuring that the criteria and spirit of the Trust are observed.

Scot Wid Environmental Investor A Environmentally Themed OEIC/Unit Trust UK Equity 28/06/1989
Zurich Kames Ethical Equity AL Negative Ethical Life UK Equity 10/09/2010
OMW EAB Old Mutual Ethical Negative Ethical Life Global Equity 13/01/2006
EdenTree Amity Global Equity Income fund for Charities A Ethically Balanced OEIC/Unit Trust Global Equity Income 03/04/2011
Blackrock GF New Energy A2 USD Environmentally Themed SICAV/Offshore* Global Unclassified 05/04/2001
Standard Life Investments European Ethical Pn S4 Negative Ethical Pension Europe Ex-UK Equity 16/09/2013 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW Premier Ethical Pn A Ethically Balanced Pension UK Equity 08/06/2006 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Royal London Investment Grade Short Dated Credit Z Unclassified OEIC/Unit Trust Global Fixed Interest 07/12/2015
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

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

FL Jupiter Ecology EP S1 Environmentally Themed Pension Global Equity 01/02/2007 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

FL Kames Ethical Corporate Bond Pn Negative Ethical Pension Europe >50% UK Fixed Interest 31/01/2007 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

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Henderson Global Care UK Income A Ethically Balanced OEIC/Unit Trust UK Equity Income 14/05/1995 More Info (click to view)

SRI / Ethical Overview

The Fund’s investment objective is to provide income with the prospects of capital growth by investing in companies contributing to social well-being and the protection and wise use of the natural environment. The investment policy is to achieve these objectives by primarily investing in UK companies.

A clear socially responsible investment (SRI) proposition offering a high level of ethical integrity for clients requiring a screened approach to investment, avoiding companies involved in such areas as gambling, alcohol production, the military, nuclear energy, and tobacco.

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. Funds that consider such issues typically require careful management of such issues in order for a company to be considered acceptable/attractive.
  • 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

  • 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.
  • Faith friendly These funds are likely to have attributes that some faith based investors may welcome such as opposition to armaments, gambling and alcohol.
  • 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.
  • 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.
  • 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.

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 Fund aims to provide a sustainable and responsible investment product to investors that adheres to investment criteria for stewardship and ethical, sustainable and responsible investment.

Once an idea has been generated, it is screened for ethical considerations. The Fund adheres to ethical criteria avoiding companies that have products, services or activities which have a negative impact on people, the environment and animals. In arriving at investment views on specific stocks, the team makes full use of the research provided by external providers. In particular Henderson has partnered with industry leading environmental research company, EIRIS, to undertake additional detailed, ethical, environmental and sustainable analysis.

Resources, Affiliations & Corporate Strategies

As part of the team’s investment process, stock ideas are derived from a variety of internal and external sources, and there is no preferred source. In the fund managers’ experience, good investment ideas can arise from many different sources and in different ways. In particular, the accumulated knowledge and experience of the Global Equity income team combined with their strong valuation focus provides an invaluable source of ideas.

The Global Equity Income team has regular meetings with company management and these meetings are a key input in the stock selection process. In arriving at investment views on specific stocks, the team also makes full use of the research provided by external providers. In particular Henderson has partnered with industry leading environmental research company, EIRIS, to undertake additional detailed, ethical, environmental and sustainable analysis.
 
In addition to the team’s proprietary research activities, there are other in-house and external sources as detailed below.

Internal

  • The team has access to research conducted by the remainder of Henderson’s investment professionals via the Henderson Research Hub
  • The Governance and Responsible Investment (GRI) team provides advice and guidance on a range of ESG issues affecting existing and potential fund investments, market trends and development of ESG themes
  • The GRI team also assists with engaging with company management on ESG and SRI issues

External

  • Henderson uses a wide range of external specialist ESG research, including IVIS, CDP, Directors Deals, MSCI, EIRIS, Trucost, ISS and broker research, Strategist research.
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

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW Aberdeen Ethical World Equity Ethically Balanced Life Global Equity 27/06/2006
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

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Kames Global Sustainable Equity Fund Sustainability Themed OEIC/Unit Trust Global Equity 20/04/2016 More Info (click to view)

SRI / Ethical Overview

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

Fossil fuel areas of exclusion: coal and tar sands.

Resources, Affiliations & Corporate Strategies

Scot Wid Ethical A Negative Ethical OEIC/Unit Trust UK Equity 11/09/1987
OMW EdenTree Amity European Ethically Balanced Life Europe Ex-UK Equity 16/10/2008
Cler Med Evergreen Pn Ethically Balanced Pension Global Equity 01/03/1990
Zurich Sterling Henderson UK Property Responsible Ownership Life UK Property 25/11/2002
Aberdeen Multi Manager Ethical Portfolio Acc Ethically Balanced OEIC/Unit Trust Global Equity 12/02/2002
BlackRock AEGON Ethical Pn A Negative Ethical Pension UK Equity 28/03/2002
L&G Ethical Pn G1 Acc Sustainability Themed Pension UK Equity 05/04/2001
Aviva Alliance Trust Sustainable Future Absolute Growth S1 Sustainability Themed Life Global Equity 24/06/2001
Royal London Sustainable Diversified Sustainability Themed OEIC/Unit Trust UK Mixed Asset 23/07/2009 More Info (click to view)

SRI / Ethical Overview

A Trust that invests in companies with products or services that benefit the core themes of the environment, human welfare and sustainability. The Trust aims to provide first-quartile performance over a rolling three-year period measured against the IMA Mixed Investment 20-60% Shares sector, from a diverse range of asset classes mainly in the United Kingdom (UK).

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.)

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

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'.

SRI / Ethical Policy

The selection process works on two levels as outlined below:

Firstly, we look for companies with products or services with a net positive benefit to society. Once found we check the environmental, social and governance practices of the company to ensure it is suitable for inclusion in the Trust. It is however the product or service angle that is the preferred driver for inclusion.

The second level is looking for companies that are leaders in sustainable business practices within their industries. This involves looking at the key environmental and social issues relating to a sector, assessing how each company in that sector manages those issues then selecting the best performing companies for inclusion in the investment universe. 

Good corporate governance is irreducible: companies with good environmental credentials but unacceptable corporate governance will not be invested in. The overall focus on companies that manage their impacts and stakeholders effectively is a tool of good risk management and protects the fund relatively well from governance and reputation-related scandals.

Resources, Affiliations & Corporate Strategies

Sustainability research is primarily conducted internally. As our approach to sustainable investing is unique to these funds we feel better able to make judgements about the suitability of investments than external providers of research. From a financial perspective the process is again primarily internal however we will use broker research as an input into the overall decision making.

RLAM has significant resources devoted to the evaluation of ESG issues. The team is headed by Niall O’Shea and he is supported by three analysts focusing on corporate governance and responsible investment. This team has considerable experience of assessing ESG risk, engaging with companies and championing ESG in a wider context.

The Trust also benefits from an independent external Advisory Committee since its inception which independently approves the investment universe. This committee is multi-disciplinary, consisting of experts in areas such as the environment, governance and Socially Responsible Investing. They are independent of RLAM and advise on companies in the approved universe, giving their views, especially if they believe that a company is no longer suitable.

The Committee meets quarterly to review the research process and output of the team. It receives reports on sectors, companies and topical issues, advises on the approval and exclusion of companies from the investment universe, discusses the Trust’s financial performance, and topical issues relevant to the Trust, such as the nuclear debate. It is also responsible for ensuring that the criteria and spirit of the Trust are observed.

OMW IPL F&C Stewardship Growth Pn Ethically Balanced Pension UK Equity 04/02/2014
AXA Wealth AXA IM Ethical Distribution P Acc Negative Ethical Pension UK Mixed Asset 30/08/2009 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

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Standard Life Investments UK Ethical Pn S1 Negative Ethical Pension UK Unclassified 29/06/1998 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Standard Life Inv 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

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Corporate Activity

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Links

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SRI / Ethical Policy

UK Mixed Assets

Resources, Affiliations & Corporate Strategies

FNW Kames Ethical Cautious Managed Negative Ethical Life UK Mixed Asset 05/06/2007
Scot Wid Ethical Negative Ethical Life UK Equity 24/10/2004
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)

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SRI Features

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Corporate Activity

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

SRI / Ethical Policy

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.

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

AXA Ethical Distribution Ret Acc Negative Ethical OEIC/Unit Trust UK Mixed Asset 24/11/2008
FL Jupiter Ecology Pn Environmentally Themed Pension Global Equity 29/01/2009 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

FL AXA Ethical Distribution EP Negative Ethical Pension UK Mixed Asset 02/01/2008 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

Virgin Climate Change Environmentally Themed OEIC/Unit Trust Europe Equity 18/01/2008
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

FL HSBC Amanah Global Equity Index Pn Faith Based Pension Global Equity 01/12/2004
Scot Wid Environmental Environmentally Themed Life UK Equity 08/05/2000
Aviva Alliance Trust Sustainable Future Corporate Bond S1 Sustainability Themed Life Europe >50% UK Fixed Interest 24/06/2001
Newton SRI for Charities Unclassified OEIC/Unit Trust Global Mixed Asset 16/05/2010
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

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

SIP Kames Ethical Cautious Managed S6 Negative Ethical Life UK Mixed Asset 01/01/1970
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 EdenTree Amity UK Pn Ethically Balanced Pension UK Equity 16/10/2008 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

EdenTree Amity UK A Ethically Balanced OEIC/Unit Trust UK Equity 01/03/1988 More Info (click to view)

SRI / Ethical Overview

The Amity UK Fund aims to achieve long-term capital appreciation and a reasonable level of income by investing principally in UK companies. These Funds seek 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 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 allowa