Wellington Global Stewards Fund
SRI Style:
Sustainable Style
SDR Labelling:
Not eligible to use label
Product:
SICAV/Offshore
Fund Region:
Global
Fund Asset Type:
Equity
Launch Date:
31/01/2019
Last Amended:
Aug 2024
Dialshifter (
):
Fund Size:
£2150.00m
(as at: 31/12/2024)
Total Screened Themed SRI Assets:
£34600.00m
Total Assets Under Management:
£933080.00m
ISIN:
IE000GJ3CPN2, IE0005MW7QZ1, IE0000SOLQ25, IE000T05EWE7, IE000VO6XNB5, IE0000D3IPY1, IE0009AP1390, IE00BJ09MR04, IE000DN1Y032, IE00BK9WPY51, IE000XNUGI52, IE0003Z437U1, IE00BH3Q8W13, IE00BH3Q8N22, IE00BK9WPY51
Contact Us:
Objectives:
The sustainable objective of the Fund is to invest in companies whose management teams and boards display superior stewardship. The Fund expects to maintain a minimum of 90% of its net assets in companies which are assessed to be Sustainable Investments. The Fund will maintain at least 20% in Sustainable Investments with an environmental objective and at least 10% with a social objective. Sustainable Investments are assessed against each of the mandatory corporate and/or sovereign Principal Adverse Impacts.
Although the Fund does not have a reduction in carbon emissions as its objective pursuant to Article 9(3) of SFDR, the Fund targets net zero emissions by 2050 in alignment with the Paris Agreement by investing in companies that have set carbon emission reduction targets or maintain lower carbon emissions relative to their industry average. The Fund also applies an Exclusion Policy which excludes issuers which are involved in harmful activities.
Sustainable, Responsible
&/or ESG Overview:
Global Stewards seeks to outperform the MSCI All Country Index over the long term by investing in companies with sustained track records of strong financial returns and superior stewardship. Stewardship is defined as how companies balance the interests of all stakeholders (e.g. customers, employees, communities, and the supply chain) in the pursuit of profits and how they incorporate material ESG risks and opportunities in their corporate strategy.
The investment process emphasizes proprietary, fundamental, bottom-up research on large cap, liquid global equities, with a focus on high-quality, established industry leaders with secure competitive positions, long track records of strong returns on capital, and demonstrably positive stewardship. A proprietary scorecard is used to evaluate both the return and stewardship pillars of the investment approach and assess whether companies demonstrate appropriate duty of care towards their key stakeholders, including large employee and customer bases, complex supply chains, and their engagement with the environment.
Primary fund last amended:
Aug 2024
Information directly from fund manager.
Fund Filters
Sustainability - General
Funds that have policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See fund information.
Find funds which substantially focus on sustainability issues
Find funds where there is a significant emphasis on (environmental and social) sustainability. Funds with a 'sustainability theme' typically place more emphasis on the area than funds with a 'sustainability policy' - meaning that it is more likely to drive investment selection. Strategies vary. See fund information for further detail.
A core element of these funds aim to encourage higher sustainability standards across business practices through responsible ownership / stewardship / engagement / voting activity
Find funds that use the UN Global Compact to inform or help direct where they can or cannot invest and will typically not invest in companies with significant breaches (low standards) - although strategies vary. (The UNGC covers a wide range of issues - search 'UNGC'). See https://unglobalcompact.org/
Environmental - General
Funds that have policies which relate to environmental issues. These will typically set out the fund's stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary. See fund information for further information.
Funds that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change. Funds vary - some funds may be 'underweight' in this area which means they may have some investment in highly carbon intensive areas. Funds of this kind may choose companies they consider to be 'best in sector' and encourage ever higher standards. Strategies vary. See fund information for further details.
Funds that aim to invest in companies with strong or market leading environmental policies and practices. Strategies vary - in particular the balance between 'financial' aspects and environmental benefits. Some may invest substantially in solutions or 'positive impact' companies - others may invest in more conventional companies providing certain environmental criteria are met. See fund information for further detail.
Nature & Biodiversity
Fund has a responsible palm oil policy which is likely to focus on the producers of palm oil and deforestation issues with a view to informing investment decisions (and / or engagement) to support and encourage high standards.
Climate Change & Energy
Funds that have policies (documented strategies that explain their position on) climate change related issues such as greenhouse gas/carbon emissions, net zero, transitioning to lower carbon. Strategies vary. Read fund details for further information.
Funds that avoid investing in major coal, oil and/or gas (extraction) companies. Funds vary: some may exclude all companies that extract oil. Others may have exposure to oil extraction via more diversified energy companies. See fund literature to confirm details.
Funds that avoid companies involved in fracking and tar sands - which are widely regarded as controversial methods of oil and gas extraction. Strategies vary. See fund information for further information.
A core element of these funds will aim to encourage the transition to lower carbon activities through responsible ownership / stewardship / engagement / voting activity
Find funds that have policies which say they avoid or limit their investment in the nuclear industry. Strategies vary. See fund information for further detail.
This fund has a strategy that aims ensure its holdings will gradually reduce their greenhouse gas emissions in line with targets set at COP21 in Paris. The ultimate aim is to achieve ‘net zero emissions by 2050’ and a ‘maximum global temperature increase of +1.5 to +2 degrees above preindustrial levels’. Strategies and opinions vary. Read fund information.
Ethical Values Led Exclusions
Companies are excluded if they are involved in any aspect of the production chain for tobacco products, including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Companies are excluded if they make more than 5% of their revenue from the manufacture, sale or distribution of tobacco products including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Find funds that avoid companies that manufacture products intended specifically for military use. Fund strategies vary - particularly with regard to non-strategic military products. See fund literature for fund specific details.
Human Rights
Find funds that have policies relating to human rights issues. Funds of this kind typically require companies to demonstrate higher standards, although some fund managers work to encourage improvements. Investee companies are often judged against internationally agreed norms or standards. Strategies vary. See fund information for further detail.
Banking & Financials
Find funds that include banks as part of their holdings / portfolio.
Funds that do or may invest in insurance companies.
Governance & Management
Find fund options that have policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary. See fund literature for further information.
Find funds that aim to avoid investing in companies with poor governance practices.(e.g. board structure, management practices etc.) Views may however vary on what counts as 'poor' practices - and funds may not immediately divest as they may prefer to work to encourage higher standards. See fund literature for further information.
Find funds that have policies explaining how managers will respond to assets / companies that do not comply with relevant anti-bribery and anti-corruption standards or laws. Strategies vary; options include stewardship/ engagement and divestment - or a combination. See fund literature for further information.
Fund managers encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)
A core element of these funds will aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity
Fund Governance
Find funds that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature.
Asset Size
Find funds that invests more than half of their money into what are commonly regarded as 'large companies'. This will typically mean that the market capitalisation (or value) of the companies they hold is in excess of £5 to £10 billion.
Find funds that have SRI strategies and focus their investment stock selection on larger companies. (e.g. over circa £5-£10bn)
How The Fund Works
Find funds that focus on finding and investing in companies with positive / beneficial attributes. This strategy can be applied in addition to exclusion criteria and engagement/stewardship activity.
Find funds where their main 'ethical approach' is to avoid companies by using negative screening criteria. Read fund literature for further information.
Aims to avoid companies that do significant harm. This originates from the EU’s sustainable finance ‘DNSH’ (do no significant harm) work, which is not necessarily used by UK investors.
Find funds that make significant use of internationally agreed 'norms' (e.g. United Nations Global Compact - UNGC - or the UN Sustainable Development Goals - SDGs) as part of their investment selection process alongside additional SRI criteria such as positive or negative stock selection policies and/or stewardship strategies.
A major focus of these funds is the careful management of environmental, social and governance (ESG) related risks - typically by avoiding or being underweight in companies seen as posing major risks in these areas (i.e. not necessarily by using themes, exclusions etc).
Find funds that have published explanations of their ethical, social and/or environmental policies online (i.e. fund decision making strategies/ buy/sell &/or asset management strategies).
This fund does not use stock lending for performance or risk purposes.
Unscreened Assets & Cash
All assets held in the fund - except cash - meet the sustainability criteria published in fund documentation.
Intended Clients & Product Options
Finds funds designed to meet the needs of individual investors with an interest in sustainability issues.
Find funds that are available via a tax efficient ISA product wrapper.
Only applicable for DFM’s & portfolio providers. Finds those that offer an SRI / ESG portfolio option
Only applicable for DFM’s & portfolio providers. Find service providers who offer multiple SRI / ESG portfolio options
Labels & Accreditations
Finds funds classified under Article 9 of the EU’s SFDR (Sustainable Finance Disclosure Requirements). Article 9 of the SFDR applies to financial products that have sustainable investment 'objectives' - including emissions reduction objectives. (These may currently be referred to as 'impact' funds or aiming to deliver clear, specific positive outcomes.) These rules do not currently apply in the UK so fund managers may leave this field blank.
Fund Management Company Information
About The Business
Finds fund management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.
Find fund management companies that actively encourage higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
Find fund managers that consider responsible ownership and ESG to be a key differentiator for their business.
Find funds run by fund managers that apply Responsible ownership or 'Stewardship' policies to all or most of their investment assets. This means active involvement (e.g. voting, dialogue) with the companies they invest in across funds (not normally limited to ethical or SRI options.) Read fund literature for further information.
Find fund management companies that consider environmental, social and governance (ESG) issues when deciding whether or not to invest in a company for all / almost all of their funds and other assets. This is increasingly seen as part of sound risk management.
Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.
Find fund management companies that encourage the companies they invest in to have strong diversity, race, gender and other equality policies across all assets held, not simply screened or themed SRI/ESG funds. (ie Asset Management company wide).
This asset management company invests in companies which have recently listed on a stock exchange (which is important as it can help grow new businesses).
Asset management company has investments in bonds designed to meet sustainability requirements - however these assets may not be 'ringfenced' for this purpose. See fund manager website for details.
Fund management entity offers unstructured intermediary training on sustainable investment (ie for financial advisers and wealth managers)
Collaborations & Affiliations
Find fund management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
Fund management entity is a member of the Investment Association https://www.theia.org/
Resources
Find fund management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.
Find a fund management company that directly employs specialist ESG/SRI/sustainability researchers or analysts. This allows asset managers to discuss environmental, social and governance risks and opportunities directly with companies.
Find fund management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors.
Accreditations
Find fund managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where fund managers are encouraged to behave like responsible, typically longer term 'company owners'.
Engagement Approach
Fund manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
Asset manager has a stewardship /responsible ownership strategy that involves working with fossil fuel companies on climate change related issues. See fund manager website for details.
The asset manager has a responsible ownership / stewardship strategy that focuses on biodiversity and nature issues relating to the assets they invest the aim of which will be to reduce harm and or deliver improvement. Strategies vary. https://tnfd.global
Asset manager has responsible ownership / stewardship strategy in place which aims to address human rights issues in investee companies (and potentially their suppliers) with the aim of raising standards
Asset manager has responsible ownership / stewardship strategy in place that aims to improve labour standards for the benefit of employees in investee companies (and potentially their suppliers)
Asset management company has a stewardship strategy in place which involves working to raise diversity, equality and inclusion standards across investee assets
working with the assets they hold to help stamp out modern slavery - where direct or indirect company employees are exploited for business benefits.
Fund managers have stewardship strategies in place that focus on improving governance standards across investee assets
Has a stewardship / responsible ownership strategy that encourages responsible supply chain - ie the managers will discuss environmental, social and governance issues with investee companies with the aim of raising standards
Climate & Net Zero Transition
Fund management organisations that have pledged to reduce their greenhouse gas emissions to ‘net zero’. Strategies vary - this area is changing rapidly.
This asset management company has set a date by which they plan to achieve net zero greenhouse gas / CO2e emissions.
Find fund management companies that are working to reduce their own (fund management company) carbon/greenhouse gas emissions.
Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to'zero'.
See https://sciencebasedtargets.org/
Transparency
Find fund management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.
Find companies that publish information about their sustainable and responsible investment strategies on their company website.
Find fund management companies that will supply information about their sustainable and responsible investment activity on request.
Fund management companies that publish a full record of how they vote their shares at AGMs (annual general meetings) and EGMs (extraordinary general meetings). Voting strategies have an important role to play encouraging higher environmental, social and governance standards.
Sustainable, Responsible &/or ESG Policy:
To attain the Fund's Sustainable Investment objective the Global Stewards team uses its proprietary scorecard to evaluate both the return and stewardship pillars of the investment approach. Qualitative observations are part of the fundamental research process the team uses to evaluate companies, and qualitative factors (e.g., management strength, business strategy, sustainable advantage, governance structures, E,S, and/or G risks, capital allocation) are analyzed to differentiate both organizational quality and security upside appreciation potential. In order to quantify these aspects, the team’s proprietary scorecard is used to set a standardized investment level. The scorecard is used to evaluate both the return and the stewardship pillars of the investment approach, which seeks to quantify otherwise qualitative critical stewardship attributes. A bottom-up process for identifying and analyzing candidate companies is used to complete the investment scorecard. This process relies on proprietary internal research, industry and thematic research, field research, industry and thematic conferences and discussions, news media, company meetings, filings, financials and sustainability reports, and sell-side or other third-party subscription research.
The team believes that if investee companies are to sustain their returns in the long term, then they must display strong links between stewardship and return on capital over the long-term. Further, every investment candidate for the Fund must exhibit an explicit focus on all stakeholders. In order to do this, the Fund will invest at least 90% of its net assets in companies that are considered Sustainable Investments. Sustainable Investments may contribute to either environmental or social objectives. Although the proportion of Sustainable Investments with environmental or social objectives may vary over time, the Investment Manager will maintain at least 20% in Sustainable Investments with an environmental objective and at least 10% in Sustainable Investments with a social objective.
Sustainable Investments are assessed against each of the mandatory corporate and/or sovereign Principal Adverse Impacts , as appropriate for the asset type, and as listed in Annex I Table I of the Level II SFDR Regulatory Technical Standards ("PAIs"). PAIs are assessed quantitatively, according to third party data, or qualitatively by the Investment Manager’s research analysts and investment teams using internal research and analysis regarding issuer activities. Where PAI data is lacking or unavailable, and as applicable to the asset type, the Investment Manager will conduct further due diligence and qualitatively assess the issuer’s activities, processes or policies related to climate, environmental, social and/or anti-bribery/anti-corruption matters to determine that the issuer is not doing significant harm. The Investment Manager uses PAI data in its investment research tools, portfolio management tools and trading compliance system. Issuers who fail to pass the Investment Manager’s criteria may not be held in portfolios and designated as Sustainable Investments.
To ensure “sustainable investment” holdings meet the SFDR requirement to not do “significant harm” (DNSH) to any environmental or social objective, Wellington Management has selected multiple quantitative and qualitative factors that address, indirectly or directly, concepts of harm which are reflected in the SFDR regulation. Wellington Management has created screens which are applied to strategies at the pre-trade stage by our guideline monitoring team. Upon entering an order to buy shares or debt issued by a company or sovereign issuer which fails DNSH assessment, the buy order will be flagged and the investment teams are required to affirmatively discontinue pursuit of the investment or use credible evidence to override the DNSH flag. In addition, portfolio managers and investment teams are expected to take into account all reasonably available information in determining whether an investment does significant harm irrespective of the above screening process. Such factors may include, but are not limited to harmful sources of revenue, failure of companies to provide adequate transparency into their activities or failure of companies to adopt policies or embrace practices which the portfolio manager or investment team believes are indicative of likely harm in the future.
Alignment with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights is tested as part of the Investment Manager’s process to identify Sustainable Investments. Assessment of management policies and practices are necessary to determine alignment. Misalignment with the OECD Guidelines for Multinational Enterprises or the UN Guiding Principles on Business and Human Rights may be determined where the Investment Manager identifies UN Global Compact non-compliance, inadequate policies and/or unresolved controversies. Issuers assessed to be in breach of the OECD Guidelines for Multinational Enterprises or the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identified in the Declaration of the International Labour Organisation on Fundamental Principles and Rights at Work and the International Bill of human Right are not eligible to be classified as Sustainable Investments.
The Fund applies an Exclusion Policy which sets out issuers which are excluded where they have been identified using a combination of third party and/or internal analysis as having a predefined level of involvement in the following areas:
- Production of controversial weapons, including cluster munitions, landmines, biological/ chemical weapons, depleted uranium weapons, blinding laser weapons, incendiary weapons, and/or non-detectable fragments;
- Production of nuclear weapons;
- Production, distribution, retail or supply of tobacco related products;
- Thermal coal extraction or thermal coal-based power generation; and
- Production and generation of oil sands (also known as tar sands).
Good governance practices of investee companies are assessed using proprietary G ratings where available in accordance with its Good Governance Assessment Policy. These ratings rely on a combination of internal and/or external data inputs.
Although the Fund does not have a reduction in carbon emissions as its objective pursuant to Article 9(3) of SFDR, the Fund targets net zero emissions by 2050 in alignment with the Paris Agreement by investing in companies that have set carbon emission reduction targets or maintain lower carbon emissions relative to their industry average. In relation to the net zero commitment, the science based targets initiative provides a clearly-defined pathway for companies to reduce greenhouse gas emissions. Targets are considered ‘science-based’ if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement – limiting global warming to well-below 2°C above pre-industrial levels and pursuing efforts to limit warming to 1.5°C. Specifically, the Investment Manager is committed to investing 65% of the Fund's assets (ex-cash and cash equivalents) in companies with net zero science-based targets by 2030, and 100% of the Fund (ex-cash and cash equivalents) by 2040. In the interim, the Investment Manager is committed to investing 100% of the Fund's assets (ex-cash and cash equivalents) in companies that have at least one of the following three attributes: a net zero science-based target, a non- science-based target which is a public active emissions reduction target, or a combined scope 1+2 intensity (tons CO2/$M revenue) that is at least 25% below their industry average based on publicly disclosed emissions.
Process:
The Global Stewards team applies a bottom-up process for identifying and analysing companies for its opportunity set. As an initial step, candidate companies are sourced from an internal research process as well as from dedicated research associates, including Wellington Management’s global industry analysts, ESG analysts, credit analysts and global network of in-house portfolio managers and analysts. This process relies, among other sources, on proprietary internal research; industry and thematic research; field research; industry and thematic conferences and discussions; news media; company meetings, filings, financials and sustainability reports; and sell-side or other third-party subscription research.
The investment universe tends to include the largest and most liquid global companies, with a focus on high-quality, established industry leaders with secure competitive positions, long track records of strong returns on capital, and demonstrably superior stewardship. The team collaborates with the firm’s global industry analysts to identify the best long-term investment ideas, representing companies with secure competitive positions with high financial returns. The team then works with Wellington Management’s ESG research team to identify material E, S, and/or G differences between companies and to determine the stewardship leaders within industries and regions. Given the team’s desire to balance strong fundamentals and ESG leadership, companies that are deemed deficient or declining in either area are avoided. The team then conducts detailed fundamental analysis on each company, evaluating the sustainability of financial returns and returns on capital, history of capital allocation, ESG priorities, aptitude and attitude towards engagement, and their desire to pursue superior stewardship. A critical element of the research process involves understanding how companies balance the interests of all stakeholders, how they evaluate E, S, and/or G risks and opportunities, and how they integrate material E, S, and/or G factors into their long-term planning. Through this process, the team will typically invest in around 35 – 45 stocks that meet their fundamental and stewardship criteria. The portfolio is constructed to reduce country, sector, and style biases, so that stock-specific factors are the main drivers of risk and return. Valuation does not drive investment decisions but is used as an input into position sizing. The team collaborates with the Investment Product and Fund Strategies and Global Risk and Analytics Groups to apply proprietary and third-party risk management tools to ensure that stock selection is the primary driver of risk in the portfolio.
As shareholders, the investment team believes it is their duty to engage with the companies in the portfolio. The goal of their stewardship activities — engaging with managements on E, S, and/or G issues and voting proxies on behalf of clients — is to support or influence decisions that can maximize the long-term value of companies. The team engages directly with company managements and boards to identify and understand E, S, and/or G risks and opportunities. By developing strong relationships with companies, the team can champion and support long-termism. Their input can challenge insular thinking. They can also help to prioritize governance factors that matter to longstanding owners, and they can offer opinions guidance on environmental and social issues on which companies may not have perspective. Lastly, engagement enables the team to hold boards and management teams accountable for their actions. They aim for transparency and authenticity in all of their engagements. Their goal is to invest in companies that prioritize the business and shareholder returns over growth, particularly when they believe financial returns may be higher or last longer than the market anticipates. Importantly, the team meets regularly with board members and management teams, focusing on E, S, and/or G considerations that are most material to companies’ businesses over the long term.
The Global Stewards team maintain a master spreadsheet on key proxy issues, their stewardship assessments, areas of focus for engagement, and a scorecard that tracks outcomes from board-level and management discussions. The results of proprietary research and engagement with companies are reflected in the team’s investment scorecard, which enables it to evaluate and track the return and stewardship profiles of companies on an ongoing basis and compare it with its peers. The scorecard seeks to quantify otherwise qualitative critical stewardship attributes such as executive skill and alignment and the effectiveness of the board.
Resources, Affiliations & Corporate Strategies:
As of 31 March 2024, the Sustainable Investment Research Team consists of 23 members, including 8 ESG Research Analysts who have dedicated sector coverage and 2 ESG Research Associates. We have also identified 3 members dedicated to Private research and 6 members wholly focused on climate research as a part of our continually evolving resources in sustainability research.
The ESG Team focuses on research, stewardship including engagement and proxy voting, and integration of ESG factors into portfolio managers’ and analysts’ processes. The ESG Team does not independently manage any sustainable investment approaches, but rather supports client portfolios across our investment platform globally.
SDR Labelling: Not eligible to use label
Voting Record
Disclaimer
Disclaimer
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| Fund Name | SRI Style | SDR Labelling | Product | Region | Asset Type | Launch Date | Last Amended |
|
|---|---|---|---|---|---|---|---|---|
Wellington Global Stewards Fund |
Sustainable Style | Not eligible to use label | SICAV/Offshore | Global | Equity | 31/01/2019 | Aug 2024 | |
ObjectivesThe sustainable objective of the Fund is to invest in companies whose management teams and boards display superior stewardship. The Fund expects to maintain a minimum of 90% of its net assets in companies which are assessed to be Sustainable Investments. The Fund will maintain at least 20% in Sustainable Investments with an environmental objective and at least 10% with a social objective. Sustainable Investments are assessed against each of the mandatory corporate and/or sovereign Principal Adverse Impacts. Although the Fund does not have a reduction in carbon emissions as its objective pursuant to Article 9(3) of SFDR, the Fund targets net zero emissions by 2050 in alignment with the Paris Agreement by investing in companies that have set carbon emission reduction targets or maintain lower carbon emissions relative to their industry average. The Fund also applies an Exclusion Policy which excludes issuers which are involved in harmful activities. |
Fund Size: £2150.00m (as at: 31/12/2024) Total Screened Themed SRI Assets: £34600.00m (as at: 31/12/2024) Total Assets Under Management: £933080.00m (as at: 31/12/2024) ISIN: IE000GJ3CPN2, IE0005MW7QZ1, IE0000SOLQ25, IE000T05EWE7, IE000VO6XNB5, IE0000D3IPY1, IE0009AP1390, IE00BJ09MR04, IE000DN1Y032, IE00BK9WPY51, IE000XNUGI52, IE0003Z437U1, IE00BH3Q8W13, IE00BH3Q8N22, IE00BK9WPY51 Contact Us: #ClientGroupInvestorServicesEMEA@wellington.com |
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Sustainable, Responsible &/or ESG OverviewGlobal Stewards seeks to outperform the MSCI All Country Index over the long term by investing in companies with sustained track records of strong financial returns and superior stewardship. Stewardship is defined as how companies balance the interests of all stakeholders (e.g. customers, employees, communities, and the supply chain) in the pursuit of profits and how they incorporate material ESG risks and opportunities in their corporate strategy. The investment process emphasizes proprietary, fundamental, bottom-up research on large cap, liquid global equities, with a focus on high-quality, established industry leaders with secure competitive positions, long track records of strong returns on capital, and demonstrably positive stewardship. A proprietary scorecard is used to evaluate both the return and stewardship pillars of the investment approach and assess whether companies demonstrate appropriate duty of care towards their key stakeholders, including large employee and customer bases, complex supply chains, and their engagement with the environment.
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Primary fund last amended: Aug 2024 |
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Information received directly from Fund Manager |
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Fund FiltersSustainability - General
Sustainability policy
Funds that have policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See fund information.
Sustainability focus
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Sustainability theme or focus
Find funds where there is a significant emphasis on (environmental and social) sustainability. Funds with a 'sustainability theme' typically place more emphasis on the area than funds with a 'sustainability policy' - meaning that it is more likely to drive investment selection. Strategies vary. See fund information for further detail.
Encourage more sustainable practices through stewardship
A core element of these funds aim to encourage higher sustainability standards across business practices through responsible ownership / stewardship / engagement / voting activity
UN Global Compact linked exclusion policy
Find funds that use the UN Global Compact to inform or help direct where they can or cannot invest and will typically not invest in companies with significant breaches (low standards) - although strategies vary. (The UNGC covers a wide range of issues - search 'UNGC'). See https://unglobalcompact.org/ Environmental - General
Environmental policy
Funds that have policies which relate to environmental issues. These will typically set out the fund's stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary. See fund information for further information.
Limits exposure to carbon intensive industries
Funds that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change. Funds vary - some funds may be 'underweight' in this area which means they may have some investment in highly carbon intensive areas. Funds of this kind may choose companies they consider to be 'best in sector' and encourage ever higher standards. Strategies vary. See fund information for further details.
Favours cleaner, greener companies
Funds that aim to invest in companies with strong or market leading environmental policies and practices. Strategies vary - in particular the balance between 'financial' aspects and environmental benefits. Some may invest substantially in solutions or 'positive impact' companies - others may invest in more conventional companies providing certain environmental criteria are met. See fund information for further detail. Nature & Biodiversity
Responsible palm oil policy
Fund has a responsible palm oil policy which is likely to focus on the producers of palm oil and deforestation issues with a view to informing investment decisions (and / or engagement) to support and encourage high standards. Climate Change & Energy
Climate change / greenhouse gas emissions policy
Funds that have policies (documented strategies that explain their position on) climate change related issues such as greenhouse gas/carbon emissions, net zero, transitioning to lower carbon. Strategies vary. Read fund details for further information.
Coal, oil & / or gas majors excluded
Funds that avoid investing in major coal, oil and/or gas (extraction) companies. Funds vary: some may exclude all companies that extract oil. Others may have exposure to oil extraction via more diversified energy companies. See fund literature to confirm details.
Fracking and tar sands excluded
Funds that avoid companies involved in fracking and tar sands - which are widely regarded as controversial methods of oil and gas extraction. Strategies vary. See fund information for further information.
Encourage transition to low carbon through stewardship activity
A core element of these funds will aim to encourage the transition to lower carbon activities through responsible ownership / stewardship / engagement / voting activity
Nuclear exclusion policy
Find funds that have policies which say they avoid or limit their investment in the nuclear industry. Strategies vary. See fund information for further detail.
Paris aligned fund strategy
This fund has a strategy that aims ensure its holdings will gradually reduce their greenhouse gas emissions in line with targets set at COP21 in Paris. The ultimate aim is to achieve ‘net zero emissions by 2050’ and a ‘maximum global temperature increase of +1.5 to +2 degrees above preindustrial levels’. Strategies and opinions vary. Read fund information. Ethical Values Led Exclusions
Tobacco and related product manufacturers excluded
Companies are excluded if they are involved in any aspect of the production chain for tobacco products, including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Tobacco and related products - avoid where revenue > 5%
Companies are excluded if they make more than 5% of their revenue from the manufacture, sale or distribution of tobacco products including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Armaments manufacturers avoided
Find funds that avoid companies that manufacture products intended specifically for military use. Fund strategies vary - particularly with regard to non-strategic military products. See fund literature for fund specific details. Human Rights
Human rights policy
Find funds that have policies relating to human rights issues. Funds of this kind typically require companies to demonstrate higher standards, although some fund managers work to encourage improvements. Investee companies are often judged against internationally agreed norms or standards. Strategies vary. See fund information for further detail. Banking & Financials
Invests in banks
Find funds that include banks as part of their holdings / portfolio.
Invests in insurers
Funds that do or may invest in insurance companies. Governance & Management
Governance policy
Find fund options that have policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary. See fund literature for further information.
Avoids companies with poor governance
Find funds that aim to avoid investing in companies with poor governance practices.(e.g. board structure, management practices etc.) Views may however vary on what counts as 'poor' practices - and funds may not immediately divest as they may prefer to work to encourage higher standards. See fund literature for further information.
Anti-bribery and corruption policy
Find funds that have policies explaining how managers will respond to assets / companies that do not comply with relevant anti-bribery and anti-corruption standards or laws. Strategies vary; options include stewardship/ engagement and divestment - or a combination. See fund literature for further information.
Encourage board diversity e.g. gender
Fund managers encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)
Encourage higher ESG standards through stewardship activity
A core element of these funds will aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity Fund Governance
ESG integration strategy
Find funds that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature. Asset Size
Over 50% large cap companies
Find funds that invests more than half of their money into what are commonly regarded as 'large companies'. This will typically mean that the market capitalisation (or value) of the companies they hold is in excess of £5 to £10 billion.
Invests mostly in large cap companies / assets
Find funds that have SRI strategies and focus their investment stock selection on larger companies. (e.g. over circa £5-£10bn) How The Fund Works
Positive selection bias
Find funds that focus on finding and investing in companies with positive / beneficial attributes. This strategy can be applied in addition to exclusion criteria and engagement/stewardship activity.
Negative selection bias
Find funds where their main 'ethical approach' is to avoid companies by using negative screening criteria. Read fund literature for further information.
Significant harm exclusion
Aims to avoid companies that do significant harm. This originates from the EU’s sustainable finance ‘DNSH’ (do no significant harm) work, which is not necessarily used by UK investors.
Combines norms based exclusions with other SRI criteria
Find funds that make significant use of internationally agreed 'norms' (e.g. United Nations Global Compact - UNGC - or the UN Sustainable Development Goals - SDGs) as part of their investment selection process alongside additional SRI criteria such as positive or negative stock selection policies and/or stewardship strategies.
Focus on ESG risk mitigation
A major focus of these funds is the careful management of environmental, social and governance (ESG) related risks - typically by avoiding or being underweight in companies seen as posing major risks in these areas (i.e. not necessarily by using themes, exclusions etc).
SRI / ESG / Ethical policies explained on website
Find funds that have published explanations of their ethical, social and/or environmental policies online (i.e. fund decision making strategies/ buy/sell &/or asset management strategies).
Do not use stock / securities lending
This fund does not use stock lending for performance or risk purposes. Unscreened Assets & Cash
All assets (except cash) meet published sustainability criteria
All assets held in the fund - except cash - meet the sustainability criteria published in fund documentation. Intended Clients & Product Options
Intended for investors interested in sustainability
Finds funds designed to meet the needs of individual investors with an interest in sustainability issues.
Available via an ISA (OEIC only)
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Portfolio SRI / ESG options available (DFMs)
Only applicable for DFM’s & portfolio providers. Finds those that offer an SRI / ESG portfolio option
Multiple SRI / ESG portfolio options available (DFMs)
Only applicable for DFM’s & portfolio providers. Find service providers who offer multiple SRI / ESG portfolio options Labels & Accreditations
SFDR Article 9 fund / product (EU)
Finds funds classified under Article 9 of the EU’s SFDR (Sustainable Finance Disclosure Requirements). Article 9 of the SFDR applies to financial products that have sustainable investment 'objectives' - including emissions reduction objectives. (These may currently be referred to as 'impact' funds or aiming to deliver clear, specific positive outcomes.) These rules do not currently apply in the UK so fund managers may leave this field blank. Fund Management Company InformationAbout The Business
Responsible ownership / stewardship policy or strategy (AFM company wide)
Finds fund management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.
ESG / SRI engagement (AFM company wide)
Find fund management companies that actively encourage higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
Responsible ownership / ESG a key differentiator (AFM company wide)
Find fund managers that consider responsible ownership and ESG to be a key differentiator for their business.
Responsible ownership policy for non SRI funds (AFM company wide)
Find funds run by fund managers that apply Responsible ownership or 'Stewardship' policies to all or most of their investment assets. This means active involvement (e.g. voting, dialogue) with the companies they invest in across funds (not normally limited to ethical or SRI options.) Read fund literature for further information.
Integrates ESG factors into all / most (AFM) fund research
Find fund management companies that consider environmental, social and governance (ESG) issues when deciding whether or not to invest in a company for all / almost all of their funds and other assets. This is increasingly seen as part of sound risk management.
In-house diversity improvement programme (AFM company wide)
Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.
Diversity, equality & inclusion engagement policy (AFM company wide)
Find fund management companies that encourage the companies they invest in to have strong diversity, race, gender and other equality policies across all assets held, not simply screened or themed SRI/ESG funds. (ie Asset Management company wide).
Invests in newly listed companies (AFM company wide)
This asset management company invests in companies which have recently listed on a stock exchange (which is important as it can help grow new businesses).
Invests in new sustainability linked bond issuances (AFM company wide)
Asset management company has investments in bonds designed to meet sustainability requirements - however these assets may not be 'ringfenced' for this purpose. See fund manager website for details.
Offer unstructured intermediary sustainable investment training
Fund management entity offers unstructured intermediary training on sustainable investment (ie for financial advisers and wealth managers) Collaborations & Affiliations
PRI signatory
Find fund management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
Investment Association (IA) member
Fund management entity is a member of the Investment Association https://www.theia.org/ Resources
In-house responsible ownership / voting expertise
Find fund management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.
Employ specialist ESG / SRI / sustainability researchers
Find a fund management company that directly employs specialist ESG/SRI/sustainability researchers or analysts. This allows asset managers to discuss environmental, social and governance risks and opportunities directly with companies.
Use specialist ESG / SRI / sustainability research companies
Find fund management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors. Accreditations
UK Stewardship Code signatory (AFM company wide)
Find fund managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where fund managers are encouraged to behave like responsible, typically longer term 'company owners'. Engagement Approach
Engaging on climate change issues
Fund manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
Engaging with fossil fuel companies on climate change
Asset manager has a stewardship /responsible ownership strategy that involves working with fossil fuel companies on climate change related issues. See fund manager website for details.
Engaging on biodiversity / nature issues
The asset manager has a responsible ownership / stewardship strategy that focuses on biodiversity and nature issues relating to the assets they invest the aim of which will be to reduce harm and or deliver improvement. Strategies vary. https://tnfd.global
Engaging on human rights issues
Asset manager has responsible ownership / stewardship strategy in place which aims to address human rights issues in investee companies (and potentially their suppliers) with the aim of raising standards
Engaging on labour / employment issues
Asset manager has responsible ownership / stewardship strategy in place that aims to improve labour standards for the benefit of employees in investee companies (and potentially their suppliers)
Engaging on diversity, equality and / or inclusion issues
Asset management company has a stewardship strategy in place which involves working to raise diversity, equality and inclusion standards across investee assets
Engaging to stop modern slavery
working with the assets they hold to help stamp out modern slavery - where direct or indirect company employees are exploited for business benefits.
Engaging on governance issues
Fund managers have stewardship strategies in place that focus on improving governance standards across investee assets
Engaging on responsible supply chain issues
Has a stewardship / responsible ownership strategy that encourages responsible supply chain - ie the managers will discuss environmental, social and governance issues with investee companies with the aim of raising standards Climate & Net Zero Transition
Net Zero commitment (AFM company wide)
Fund management organisations that have pledged to reduce their greenhouse gas emissions to ‘net zero’. Strategies vary - this area is changing rapidly.
Net Zero - have set a Net Zero target date (AFM company wide)
This asset management company has set a date by which they plan to achieve net zero greenhouse gas / CO2e emissions.
In-house carbon / GHG reduction policy (AFM company wide)
Find fund management companies that are working to reduce their own (fund management company) carbon/greenhouse gas emissions.
Working towards a ‘Net Zero’ commitment (AFM company wide)
Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to'zero'.
Committed to SBTi / Science Based Targets Initiative
See https://sciencebasedtargets.org/ Transparency
Publish responsible ownership / stewardship report (AFM company wide)
Find fund management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.
Full SRI / responsible ownership policy information on company website
Find companies that publish information about their sustainable and responsible investment strategies on their company website.
Full SRI / responsible ownership policy information available on request
Find fund management companies that will supply information about their sustainable and responsible investment activity on request.
Publish full voting record (AFM company wide)
Fund management companies that publish a full record of how they vote their shares at AGMs (annual general meetings) and EGMs (extraordinary general meetings). Voting strategies have an important role to play encouraging higher environmental, social and governance standards. Sustainable, Responsible &/or ESG Policy:To attain the Fund's Sustainable Investment objective the Global Stewards team uses its proprietary scorecard to evaluate both the return and stewardship pillars of the investment approach. Qualitative observations are part of the fundamental research process the team uses to evaluate companies, and qualitative factors (e.g., management strength, business strategy, sustainable advantage, governance structures, E,S, and/or G risks, capital allocation) are analyzed to differentiate both organizational quality and security upside appreciation potential. In order to quantify these aspects, the team’s proprietary scorecard is used to set a standardized investment level. The scorecard is used to evaluate both the return and the stewardship pillars of the investment approach, which seeks to quantify otherwise qualitative critical stewardship attributes. A bottom-up process for identifying and analyzing candidate companies is used to complete the investment scorecard. This process relies on proprietary internal research, industry and thematic research, field research, industry and thematic conferences and discussions, news media, company meetings, filings, financials and sustainability reports, and sell-side or other third-party subscription research. The team believes that if investee companies are to sustain their returns in the long term, then they must display strong links between stewardship and return on capital over the long-term. Further, every investment candidate for the Fund must exhibit an explicit focus on all stakeholders. In order to do this, the Fund will invest at least 90% of its net assets in companies that are considered Sustainable Investments. Sustainable Investments may contribute to either environmental or social objectives. Although the proportion of Sustainable Investments with environmental or social objectives may vary over time, the Investment Manager will maintain at least 20% in Sustainable Investments with an environmental objective and at least 10% in Sustainable Investments with a social objective. Sustainable Investments are assessed against each of the mandatory corporate and/or sovereign Principal Adverse Impacts , as appropriate for the asset type, and as listed in Annex I Table I of the Level II SFDR Regulatory Technical Standards ("PAIs"). PAIs are assessed quantitatively, according to third party data, or qualitatively by the Investment Manager’s research analysts and investment teams using internal research and analysis regarding issuer activities. Where PAI data is lacking or unavailable, and as applicable to the asset type, the Investment Manager will conduct further due diligence and qualitatively assess the issuer’s activities, processes or policies related to climate, environmental, social and/or anti-bribery/anti-corruption matters to determine that the issuer is not doing significant harm. The Investment Manager uses PAI data in its investment research tools, portfolio management tools and trading compliance system. Issuers who fail to pass the Investment Manager’s criteria may not be held in portfolios and designated as Sustainable Investments. To ensure “sustainable investment” holdings meet the SFDR requirement to not do “significant harm” (DNSH) to any environmental or social objective, Wellington Management has selected multiple quantitative and qualitative factors that address, indirectly or directly, concepts of harm which are reflected in the SFDR regulation. Wellington Management has created screens which are applied to strategies at the pre-trade stage by our guideline monitoring team. Upon entering an order to buy shares or debt issued by a company or sovereign issuer which fails DNSH assessment, the buy order will be flagged and the investment teams are required to affirmatively discontinue pursuit of the investment or use credible evidence to override the DNSH flag. In addition, portfolio managers and investment teams are expected to take into account all reasonably available information in determining whether an investment does significant harm irrespective of the above screening process. Such factors may include, but are not limited to harmful sources of revenue, failure of companies to provide adequate transparency into their activities or failure of companies to adopt policies or embrace practices which the portfolio manager or investment team believes are indicative of likely harm in the future. Alignment with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights is tested as part of the Investment Manager’s process to identify Sustainable Investments. Assessment of management policies and practices are necessary to determine alignment. Misalignment with the OECD Guidelines for Multinational Enterprises or the UN Guiding Principles on Business and Human Rights may be determined where the Investment Manager identifies UN Global Compact non-compliance, inadequate policies and/or unresolved controversies. Issuers assessed to be in breach of the OECD Guidelines for Multinational Enterprises or the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identified in the Declaration of the International Labour Organisation on Fundamental Principles and Rights at Work and the International Bill of human Right are not eligible to be classified as Sustainable Investments. The Fund applies an Exclusion Policy which sets out issuers which are excluded where they have been identified using a combination of third party and/or internal analysis as having a predefined level of involvement in the following areas:
Good governance practices of investee companies are assessed using proprietary G ratings where available in accordance with its Good Governance Assessment Policy. These ratings rely on a combination of internal and/or external data inputs. Although the Fund does not have a reduction in carbon emissions as its objective pursuant to Article 9(3) of SFDR, the Fund targets net zero emissions by 2050 in alignment with the Paris Agreement by investing in companies that have set carbon emission reduction targets or maintain lower carbon emissions relative to their industry average. In relation to the net zero commitment, the science based targets initiative provides a clearly-defined pathway for companies to reduce greenhouse gas emissions. Targets are considered ‘science-based’ if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement – limiting global warming to well-below 2°C above pre-industrial levels and pursuing efforts to limit warming to 1.5°C. Specifically, the Investment Manager is committed to investing 65% of the Fund's assets (ex-cash and cash equivalents) in companies with net zero science-based targets by 2030, and 100% of the Fund (ex-cash and cash equivalents) by 2040. In the interim, the Investment Manager is committed to investing 100% of the Fund's assets (ex-cash and cash equivalents) in companies that have at least one of the following three attributes: a net zero science-based target, a non- science-based target which is a public active emissions reduction target, or a combined scope 1+2 intensity (tons CO2/$M revenue) that is at least 25% below their industry average based on publicly disclosed emissions. Process:The Global Stewards team applies a bottom-up process for identifying and analysing companies for its opportunity set. As an initial step, candidate companies are sourced from an internal research process as well as from dedicated research associates, including Wellington Management’s global industry analysts, ESG analysts, credit analysts and global network of in-house portfolio managers and analysts. This process relies, among other sources, on proprietary internal research; industry and thematic research; field research; industry and thematic conferences and discussions; news media; company meetings, filings, financials and sustainability reports; and sell-side or other third-party subscription research. The investment universe tends to include the largest and most liquid global companies, with a focus on high-quality, established industry leaders with secure competitive positions, long track records of strong returns on capital, and demonstrably superior stewardship. The team collaborates with the firm’s global industry analysts to identify the best long-term investment ideas, representing companies with secure competitive positions with high financial returns. The team then works with Wellington Management’s ESG research team to identify material E, S, and/or G differences between companies and to determine the stewardship leaders within industries and regions. Given the team’s desire to balance strong fundamentals and ESG leadership, companies that are deemed deficient or declining in either area are avoided. The team then conducts detailed fundamental analysis on each company, evaluating the sustainability of financial returns and returns on capital, history of capital allocation, ESG priorities, aptitude and attitude towards engagement, and their desire to pursue superior stewardship. A critical element of the research process involves understanding how companies balance the interests of all stakeholders, how they evaluate E, S, and/or G risks and opportunities, and how they integrate material E, S, and/or G factors into their long-term planning. Through this process, the team will typically invest in around 35 – 45 stocks that meet their fundamental and stewardship criteria. The portfolio is constructed to reduce country, sector, and style biases, so that stock-specific factors are the main drivers of risk and return. Valuation does not drive investment decisions but is used as an input into position sizing. The team collaborates with the Investment Product and Fund Strategies and Global Risk and Analytics Groups to apply proprietary and third-party risk management tools to ensure that stock selection is the primary driver of risk in the portfolio. As shareholders, the investment team believes it is their duty to engage with the companies in the portfolio. The goal of their stewardship activities — engaging with managements on E, S, and/or G issues and voting proxies on behalf of clients — is to support or influence decisions that can maximize the long-term value of companies. The team engages directly with company managements and boards to identify and understand E, S, and/or G risks and opportunities. By developing strong relationships with companies, the team can champion and support long-termism. Their input can challenge insular thinking. They can also help to prioritize governance factors that matter to longstanding owners, and they can offer opinions guidance on environmental and social issues on which companies may not have perspective. Lastly, engagement enables the team to hold boards and management teams accountable for their actions. They aim for transparency and authenticity in all of their engagements. Their goal is to invest in companies that prioritize the business and shareholder returns over growth, particularly when they believe financial returns may be higher or last longer than the market anticipates. Importantly, the team meets regularly with board members and management teams, focusing on E, S, and/or G considerations that are most material to companies’ businesses over the long term. The Global Stewards team maintain a master spreadsheet on key proxy issues, their stewardship assessments, areas of focus for engagement, and a scorecard that tracks outcomes from board-level and management discussions. The results of proprietary research and engagement with companies are reflected in the team’s investment scorecard, which enables it to evaluate and track the return and stewardship profiles of companies on an ongoing basis and compare it with its peers. The scorecard seeks to quantify otherwise qualitative critical stewardship attributes such as executive skill and alignment and the effectiveness of the board.
Resources, Affiliations & Corporate Strategies:As of 31 March 2024, the Sustainable Investment Research Team consists of 23 members, including 8 ESG Research Analysts who have dedicated sector coverage and 2 ESG Research Associates. We have also identified 3 members dedicated to Private research and 6 members wholly focused on climate research as a part of our continually evolving resources in sustainability research. The ESG Team focuses on research, stewardship including engagement and proxy voting, and integration of ESG factors into portfolio managers’ and analysts’ processes. The ESG Team does not independently manage any sustainable investment approaches, but rather supports client portfolios across our investment platform globally. SDR Labelling: Not eligible to use label Voting RecordDisclaimerDisclaimer This material has been prepared exclusively for use with professional, accredited or institutional investors, wholesale clients and non-retail investors for general information purposes only and does not take into account the investment objectives, financial situation or needs of any particular person. By accepting this material, you acknowledge and agree that this material is provided for your use only and that you will not distribute or otherwise make this material available to any person. This material and its contents may not be reproduced or distributed, in whole or in part, without the express written consent of Wellington Management. This document is intended for marketing purposes only. It is not an offer to anyone, or a solicitation by anyone, to subscribe for units or shares of any Wellington Management Fund (“Fund”). Nothing in this document should be interpreted as advice, nor is it a recommendation to buy or sell securities. Investment in the Fund may not be suitable for all investors. Any views expressed in this document are those of the author at the time of writing and are subject to change without notice. Fund shares/ units are made available only in jurisdictions where such offer or solicitation is lawful. The Fund only accepts professional clients or investment through financial intermediaries. Please refer to the Fund offering documents for further risk factors, pre-investment disclosures, the latest annual report (and semi-annual report), and for UCITS Funds, the latest Key Investor Information Document (KIID) or Key Information Document (KID) before investing. For each country where UCITS Funds are registered for sale, the prospectus and summary of investor rights in English, and the KIID / KID in English and an official language, are available at www.wellington.com/KIIDs. For share/unit classes registered in Switzerland, Fund offering documents in English can be obtained from the local Representative and Paying Agent — BNP Paribas Securities Services, Selnaustrasse 16, 8002 Zurich, Switzerland. Wellington Management Funds (Luxembourg) and Wellington Management Funds (Luxembourg) III SICAV are authorised and regulated by the Commission de Surveillance du Secteur Financier and Wellington Management Funds (Ireland) plc is authorized and regulated by the Central Bank of Ireland. The Fund may decide to terminate marketing arrangements for shares/units in an EU Member State by giving 30 working days’ notice.
©2024 Wellington Management. All rights reserved. As of 12 April 2024. WELLINGTON MANAGEMENT FUNDS ® is a registered service mark of Wellington Group Holdings LLP
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