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Fund EcoMarket

Bringing sustainability, ethics and investment together

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Displaying 349 options from Fund EcoMarket

Print Fund Name SRI Style Product Investment Type Launch Date More info
7IM Sustainable Balance C Acc Sustainability Themed OEIC/Unit Trust Fund of Funds 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 policy which states that the fund considers environmental issues (eg pollution, climate change, resource management, environmental impact)
  • 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.
  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.
  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such the UN Global Compact..
  • Governance policy Considers issues relating to corporate governance such as board structure, remuneration, bribery and/or corporate corruption.
  • Avoids tobacco (production) Does not invest in manufacturers or tobacco (or related) products. The fund however may invest in retailers of such products (eg supermarkets or hotels.)
  • Avoids armaments manufacture Avoids companies that manufacture products intended specifically for military use. (Funds may however invest in manufacturers of products that are used by the military but are not specifically intended for military/defence use.)
  • Limits exposure to carbon intensive industries Aims to reduce or limit exposure to carbon intensive industries which are considered to be major contributors to climate change. Funds vary - but this is likely mean a fund has below average levels of investment in areas such as oil & gas, mining or airlines. 'Best in sector' companies may however be allowable.
  • Nuclear policy Has a published policy that sets out the fund's position with regard to nuclear power. In most cases this is likely to mean avoidance of companies with significant involvement in the nuclear industry although some funds may require absolute avoidance.
  • Invests in clean energy/renewables This fund invests in companies in the clean technology / renewable energy related industries. Fund strategies vary. In practice some may invest a small percentage in this area whereas others may have significant exposure to this area. Check fund literature for details.

Other 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)

Links

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.

Aberdeen Ethical World A Acc Ethically Balanced OEIC/Unit Trust Global 01/05/1999
Aberdeen Multi Manager Ethical Portfolio Acc Ethically Balanced OEIC/Unit Trust Fund of Funds 12/02/2002
Aberdeen Responsible UK Equities Ret Acc Ethically Balanced OEIC/Unit Trust UK 09/05/2006
Abundance Generation (Debentures) Environmentally Themed Other Other 20/04/2012
Aegon Ethical (RR) Pn Negative Ethical Pension UK 29/09/2014
Aegon Ethical Managed (Flexible Target) Pn range Negative Ethical Pension Global 27/01/2016
Aegon Kames Ethical Equity Pn AOR Negative Ethical Pension UK 16/10/2014 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Alquity Future World M USD Social Themed SICAV/Offshore Emerging Markets 05/06/2014
Alquity Indian Subcontinent M USD Social Themed SICAV/Offshore Emerging Markets 30/04/2014
Aviva Alliance Trust Sustainable Future Absolute Growth Pn S2 Sustainability Themed Pension Global 06/04/2001 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 for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Alliance Trust Sustainable Future Absolute Growth S1 Sustainability Themed Life Global 25/06/2001
Aviva Alliance Trust Sustainable Future Cautious Managed Pn S6 Sustainability Themed Pension Mixed Asset 17/11/2014
Aviva Alliance Trust Sustainable Future Cautious Managed S4 Sustainability Themed Life Global 17/11/2014
Aviva Alliance Trust Sustainable Future Corporate Bond Pn S2 Sustainability Themed Pension Fixed Interest 06/04/2001 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Alliance Trust Sustainable Future Corporate Bond S1 Sustainability Themed Life Fixed Interest 25/06/2001
Aviva Alliance Trust Sustainable Future Defensive Managed Pn S6 Sustainability Themed Pension Mixed Asset 17/11/2014
Aviva Alliance Trust Sustainable Future Defensive Managed S4 Sustainability Themed Life Global 17/11/2014
Aviva Alliance Trust Sustainable Future European Growth Pn S2 Sustainability Themed Pension European 06/04/2001 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "Alliance Trust Sustainable Future European 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 for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Alliance Trust Sustainable Future European Growth S1 Sustainability Themed Life European 25/06/2001
Aviva Alliance Trust Sustainable Future Global Growth Pn S2 Sustainability Themed Pension Global 06/04/2001 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Alliance Trust Sustainable Future Global Growth S1 Sustainability Themed Life Global 25/06/2001 More Info (click to view)

SRI / Ethical Overview

This life product is linked to the Alliance Trust Sustsainable Future Global Growth Fund. More detailed infromation 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 for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Alliance Trust Sustainable Future Managed Pn S2 Sustainability Themed Pension Mixed Asset 06/04/2001 More Info (click to view)

SRI / Ethical Overview

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

  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Alliance Trust Sustainable Future Managed S1 Sustainability Themed Life Mixed Asset 25/06/2001
Aviva Alliance Trust Sustainable Future UK Growth Pn S2 Sustainability Themed Pension UK 06/04/2001 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Alliance Trust Sustainable Future UK Growth S1 Sustainability Themed Life UK 25/06/2001
Aviva Alliance Trust UK Ethical Negative Ethical Life UK 10/05/1999
Aviva Alliance Trust UK Ethical NU Pn Negative Ethical Pension UK 10/05/1999 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Alliance Trust UK Ethical Pn S2 Negative Ethical Pension UK 10/05/1999
Aviva F&C Responsible Global Equity Pn S6 Ethically Balanced Pension Global 29/09/2008
Aviva F&C Responsible Global Pn S6 Ethically Balanced Pension Global 29/09/2008 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "BMO (F&C) Responsible Global 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva F&C Responsible UK Equity Growth Pn S6 Ethically Balanced Pension UK 29/09/2008 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva F&C Responsible UK Equity Income Pn S6 Ethically Balanced Pension Income 29/09/2008 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Investors Responsible Ownership Corporate Activity Overlay 01/01/1970 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • 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.

Other SRI Features

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Jupiter Ecology Pn S6 Environmentally Themed Pension Global 07/04/2008 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Jupiter Ecology S4 Environmentally Themed Life Global 01/01/1970
Aviva Kames Ethical Corporate Bond Pn S6 Negative Ethical Pension Fixed Interest 29/09/2008 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Kames Ethical Equity Pn S6 Negative Ethical Pension UK 29/09/2008 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Kames Ethical Equity S4 Negative Ethical Life UK 30/11/2009
Aviva Royal London Select Portfolio (50%-100% Shares) Sustainability Themed Life Mixed Asset 06/04/2006
Aviva Royal London Sustainable Leaders Trust S4 Sustainability Themed Life UK 27/11/2007
Aviva Royal London Select Balance S4 Responsible Ownership Life Mixed Asset 06/04/2006
Aviva Royal London Select Portfolio (20-60% Shares) Sustainability Themed Life Mixed Asset 06/04/2006
Aviva Royal London Select Portfolio (40-85% Shares) Sustainability Themed Life Mixed Asset 06/04/2006
Aviva Royal London Sustainable Diversified Sustainability Themed Life Mixed Asset 27/07/2009
Aviva Royal London Sustainable Leaders S4 Sustainability Themed Life UK 06/04/2006
Aviva Royal London Sustainable World Trust S4 Sustainability Themed Life Mixed Asset 22/11/2010
AXA Ethical Distribution Ret Acc Negative Ethical OEIC/Unit Trust Mixed Asset 24/11/2008
AXA Wealth AXA IM Ethical Distribution Ethically Balanced Life Mixed Asset 30/09/2010
AXA Wealth AXA IM Ethical Distribution P Acc Negative Ethical Pension Mixed Asset 31/08/2009 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

AXA Wealth Jupiter Ecology Environmentally Themed Life Global 24/07/2006
AXA Wealth Jupiter Ecology P 1 Environmentally Themed Pension Global 24/07/2006 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)

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

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

AXA Wealth Kames Ethical Cautious Managed Negative Ethical Life Mixed Asset 06/05/2008
AXA Wealth Kames Ethical Cautious Managed Pn S4 Negative Ethical Pension Mixed Asset 20/10/2008 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

AXA Wealth Kames Ethical Corporate Bond Negative Ethical Life Fixed Interest 06/05/2008
AXA Wealth Kames Ethical Corporate Bond Pn S4 Negative Ethical Pension Fixed Interest 20/10/2008 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

AXA Wealth Kames Ethical Equity Negative Ethical Life UK 29/01/2010
AXA Wealth Kames Ethical Equity Pn S4 Negative Ethical Pension UK 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

B&CE The People's Pension Fund 0.5Pn Unclassified Pension Global 01/01/1970
BACIT Limited Social Themed Investment Trust Global 26/10/2012 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.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Barclays Charity R Inc Unclassified OEIC/Unit Trust Global 09/09/2013
BlackRock AEGON Ethical Pn A Negative Ethical Pension UK 28/03/2002
BlackRock Aquila Life Over 5 Year Index Linked Pn Nav Unclassified Pension Fixed Interest 01/09/1996
BlackRock Charifaith Common Inv Acc Faith Based OEIC/Unit Trust Mixed Asset 31/10/2006
Blackrock GF New Energy A2 USD Environmentally Themed SICAV/Offshore Global 06/04/2001
Blackrock LGIM Ethical Global Equity Index P Sustainability Themed Life Global 30/03/2010
BMO (F&C) International Heritage 4 Acc Ethically Balanced OEIC/Unit Trust Global 02/01/2007
BMO (F&C) Responsible Global Equity 1 Acc Ethically Balanced OEIC/Unit Trust Global 13/10/1987 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Environmental policy Has policy which states that the fund considers environmental issues (eg 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 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.
  • 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.
  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.
  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such 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).
  • Avoids tobacco (production) Does not invest in manufacturers or tobacco (or related) products. The fund however may invest in retailers of such products (eg supermarkets or hotels.)
  • Avoids armaments manufacture 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 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.

Other 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 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.

Links

SRI / Ethical Policy

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

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


Exclusion Criteria:

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


Qualitative Assessment

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


The GSI team has a quarterly monitoring system to identify:

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

Resources, Affiliations & Corporate Strategies

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

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

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

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

BMO Global Asset Management (EMEA) draws on a range of specialist ESG research sources to inform proxy voting and engagement activities. We are using Institutional Shareholder Services (ISS) for global proxy voting research and vote execution services. In addition, we are using Institutional Voting Information Service (IVIS) for supplementary advice on FTSE All-Share companies. Other relevant resources include sell-side brokers (corporate governance and sustainability research) and MSCI (ESG factors). We also consider research by broader stakeholders including NGOs such as Transparency International (anti-corruption), Oxfam and Human Rights Watch.

Our research is also informed by our networks that may provide briefings and publications, including the UN PRI, International Corporate Governance Network (ICGN) and the Asian Corporate Governance Association (ACGA). We may also draw on external consultants with expertise in particular areas, although presently we have no such arrangements underway. We are also part of a global asset management firm with investment professionals and other expert resources spread across the world, and we of course have access to their insight and expertise on an as needed basis.

BMO (F&C) Responsible Sterling Bond 1 Inc Ethically Balanced OEIC/Unit Trust Fixed Interest 01/10/2007 More Info (click to view)

SRI / Ethical Overview

The F&C Responsible Sterling Bond Fund aims to maximise returns through investment primarily in Fixed Interest securities of an ethically screened and diversified list of companies. The Fund may also invest in warrants, collective investment schemes, money market instruments and derivatives. A rigorous management process and widely diversified portfolio will seek to control excessive credit risk. The Fund favours companies making a positive contribution to society as well as furthering sustainable development and screens for those taking positive action to improve the environment, conserve resources and operate in a transparent and open way in the reporting of their business activities.

SRI Policies (Primary strategy in bold)

  • Environmental policy Has policy which states that the fund considers environmental issues (eg 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 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.
  • 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.
  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.
  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such 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).
  • Avoids tobacco (production) Does not invest in manufacturers or tobacco (or related) products. The fund however may invest in retailers of such products (eg supermarkets or hotels.)
  • Avoids armaments manufacture 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 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.

Other 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.
  • 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.

Links

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

In summary, the screening criteria aim to avoid companies with poor human rights, inadequate social practices or bad environmental records. Once a company has passed the ethical screening, its bonds can be included in the investment universe available to the fund managers.

The GSI team has a quarterly monitoring system to identify:

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

Resources, Affiliations & Corporate Strategies

The F&C Responsible Sterling Bond Fund embodies the contributions of three separate specialist teams, namely our Credit team, the GSI team, and the Responsible Investment Advisory Council, who provide vital input on investment or ethical screening issues. Firstly, investment management of portfolios, in terms of credit research, choice of investments and portfolio construction, takes place within our Credit team. Secondly, issuers for portfolios need to have undergone, and passed, a rigorous screening on their ethical credentials, conducted by the GSI team. Finally, the Responsible Investment Advisory Council provides fully independent input on the firm’s ethical principles and acceptability criteria. It must be emphasised that the process remains investment led.

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.

BMO (F&C) Responsible UK Equity Growth 1 Acc Ethically Balanced OEIC/Unit Trust UK 01/06/1984 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 policy which states that the fund considers environmental issues (eg 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 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.
  • 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.
  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.
  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such 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).
  • Avoids tobacco (production) Does not invest in manufacturers or tobacco (or related) products. The fund however may invest in retailers of such products (eg supermarkets or hotels.)
  • Avoids armaments manufacture 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 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.

Other SRI Features

  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. (This means - in practice - 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.

Links

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.

BMO (F&C) Responsible UK Income 1 Acc Ethically Balanced OEIC/Unit Trust Income 13/10/1987 More Info (click to view)

SRI / Ethical Overview

The Fund’s focus is on achieving an above average income through investments in approved UK companies. Within its responsible 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 policy which states that the fund considers environmental issues (eg 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 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.
  • 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.
  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.
  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such 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).
  • Avoids tobacco (production) Does not invest in manufacturers or tobacco (or related) products. The fund however may invest in retailers of such products (eg supermarkets or hotels.)
  • Avoids armaments manufacture 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 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.

Other SRI Features

  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. (This means - in practice - 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.

Links

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 Income 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.

BMO Global Asset Management (EMEA) Responsible Ownership Corporate Activity Overlay 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)

  • 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 (eg 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.

Other SRI Features

  • 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 invests 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.

Links

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.

BMO Global Asset Management (EMEA) ESG Integration Corporate Activity Integrated 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)

  • 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 (eg 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.

Other SRI Features

  • 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 invests 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.

Links

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.

Canlife F&C Responsible Sterling Bond LS4 Ethically Balanced Life Fixed Interest 01/12/2005
Canlife F&C Responsible Sterling Bond Pn PS4 Ethically Balanced Pension Fixed Interest 06/11/2009 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "BMO (F&C) Responsible 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)

  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such the UN Global Compact..

Other SRI Features

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Canlife F&C Responsible UK Income LS4 Acc Ethically Balanced Life Income 01/12/2005
Canlife F&C Responsible UK Income Pn PS4 Acc Ethically Balanced Pension Income 01/12/2005 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)

  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such the UN Global Compact..

Other SRI Features

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Castlefield B.E.S.T. Income Inst Inc Ethically Balanced OEIC/Unit Trust Income 02/05/2006 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

-

Links

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

CF Drygate Unclassified OEIC/Unit Trust UK 03/03/2003
Charishare Restricted Acc (Blackrock Investment Managers UK Ltd) Ethically Balanced OEIC/Unit Trust UK 30/05/1997
Cler Med Ethical Pn Negative Ethical Pension Global 31/10/2000
Cler Med Evergreen Pn Ethically Balanced Pension Global 01/03/1990
CM Schroder QEP Global Core Unclassified Life Global 01/01/1970
CM Schroder QEP Global Core Pn Unclassified Pension Global 03/03/2008
EdenTree Responsible Ownership Corporate Activity Overlay 29/01/2016 More Info (click to view)

SRI / Ethical Overview

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

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

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

SRI Policies (Primary strategy in bold)

  • 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 (eg 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.

Other SRI Features

  • 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 invests 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.

Links

SRI / Ethical Policy

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

Resources, Affiliations & Corporate Strategies

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

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

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

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

EdenTree ESG Integration Corporate Activity Integrated 29/01/2016 More Info (click to view)

SRI / Ethical Overview

Positive screening is at the heart of our profit with principles approach to investment. It allows us to invest in companies that we believe are good corporate citizens. It also helps us pinpoint enterprises with well-developed policies and processes for managing their social and environmental impacts and risks. 

We also apply negative screening to eliminate businesses involved in the manufacture or sale of certain products. We apply a 10% turnover or pre-tax profit threshold for the purpose of all our negative screens. 

Funds related to this strategy and AUM as at 31/12/2015 (source EdenTree as at 31/12/2015)
EdenTree Amity UK Fund - £137.10m 
EdenTree Amity European Fund - £63.55m
EdenTree Amity International Fund - £201.07m
EdenTree Amity Sterling Bond Fund - £85.11m
EdenTree Amity Balanced Fund for Charities - £21.50m
EdenTree Amity Global Equity Income Fund for Charities - £9.14m

Our ESG integration principles are used on equity and fixed interest assets in all geographic regions.

SRI Policies (Primary strategy in bold)

  • 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 (eg 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.

Other SRI Features

  • 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 invests 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.

Links

SRI / Ethical Policy

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

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

Resources, Affiliations & Corporate Strategies

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

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

EdenTree Amity Balanced Fund for Charities Ethically Balanced OEIC/Unit Trust Global 04/04/2011
EdenTree Amity European A Ethically Balanced OEIC/Unit Trust European 13/09/1999 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Environmental policy Has policy which states that the fund considers environmental issues (eg 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 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.
  • 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.
  • 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 for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.
  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such 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).
  • Avoids tobacco (production) Does not invest in manufacturers or tobacco (or related) products. The fund however may invest in retailers of such products (eg supermarkets or hotels.)
  • Avoids armaments manufacture 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 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.

Other 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. (This means - in practice - 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.

Links

-

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 at www.ecclesiastical.com or 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.

EdenTree Amity Global Equity Income fund for Charities A Ethically Balanced OEIC/Unit Trust Global 04/04/2011
EdenTree Amity International A Ethically Balanced OEIC/Unit Trust Global 13/09/1999 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Environmental policy Has policy which states that the fund considers environmental issues (eg 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 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.
  • 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.
  • 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 for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.
  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such 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).
  • Avoids tobacco (production) Does not invest in manufacturers or tobacco (or related) products. The fund however may invest in retailers of such products (eg supermarkets or hotels.)
  • Avoids armaments manufacture 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 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.

Other 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. (This means - in practice - 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.

Links

-

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 at www.ecclesiastical.com or 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.

EdenTree Amity Sterling Bond A Ethically Balanced OEIC/Unit Trust 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 policy which states that the fund considers environmental issues (eg 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 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.
  • 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.
  • 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 for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.
  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such 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).
  • Avoids tobacco (production) Does not invest in manufacturers or tobacco (or related) products. The fund however may invest in retailers of such products (eg supermarkets or hotels.)
  • Avoids armaments manufacture 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 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.

Other 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. (This means - in practice - 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.

Links

-

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.

EdenTree Amity UK A Ethically Balanced OEIC/Unit Trust UK 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 policy which states that the fund considers environmental issues (eg 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 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.
  • 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.
  • 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 for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.
  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such 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).
  • Avoids tobacco (production) Does not invest in manufacturers or tobacco (or related) products. The fund however may invest in retailers of such products (eg supermarkets or hotels.)
  • Avoids armaments manufacture 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 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.

Other 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. (This means - in practice - 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.

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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.

EFA Eden SRI A Acc - Way Fund Mgrs Unclassified OEIC/Unit Trust Fund of Funds 02/09/2013 More Info (click to view)

SRI / Ethical Overview

The fund strategy is based purely on positive criteria.  There are no stated avoidance criteria although the fund does invest in ethical funds if focusing on providing sustainable solutions to global social and environmental challenges.

The Fund Investment type is a Global Mixed Asset “Fund of Funds”.

It offers both accumulation and income units. The Fund Manager is Paul Warner of Minerva Fund Managers. Way administer the fund.

SRI Policies (Primary strategy in bold)

  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Engage Mutual FTSE4 Good Sustainability Themed Life Mixed Asset 01/12/1998
Engage Mutual Green Chip Sustainability Themed Life Mixed Asset 24/11/1989
Epworth Affirmative Corporate Bond Faith Based OEIC/Unit Trust Fixed Interest 01/10/2009
Epworth Affirmative Equity Faith Based Other Other 31/08/2001
Family Charities Ethical Exempt S1 Sustainability Themed Life UK 01/07/1996
Fidelity F&C Responsible UK Equity Growth Pn 4 Ethically Balanced Pension UK 31/07/2005
FL Aberdeen MultiManager Ethical Ethically Balanced Life Global 27/10/2006
FL AXA Ethical Distribution EP Negative Ethical Pension UK 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

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Resources, Affiliations & Corporate Strategies

FL Conscience (xNM) Ethically Balanced Life UK 01/09/1987
FL Conscience Pn (xNM) Ethically Balanced Pension UK 01/09/1987
FL Ethical Distribution AP Acc Negative Ethical Pension UK 01/05/1998 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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Resources, Affiliations & Corporate Strategies

FL Ethical Distribution AL Negative Ethical Life UK 27/05/2002 More Info (click to view)

SRI / Ethical Overview

SRI Policies (Primary strategy in bold)

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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 Ethical Distribution AL Acc Negative Ethical Life UK 01/05/2008 More Info (click to view)

SRI / Ethical Overview

SRI Policies (Primary strategy in bold)

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

Resources, Affiliations & Corporate Strategies

FL Ethical Distribution AP 1 Negative Ethical Pension UK 05/05/1998 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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Resources, Affiliations & Corporate Strategies

FL Ethical Safeguard Optimiser Ethically Balanced Life Other 11/06/2004
FL Ethical Safeguard Optimiser S2 Ethically Balanced Life Other 09/04/2009
FL F&C Responsible Income EP Ethically Balanced Pension 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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Resources, Affiliations & Corporate Strategies

FL F&C Responsible Sterling Bond Pn Ethically Balanced Pension Fixed Interest 30/09/2010
FL F&C Responsible UK Equity Growth AL Ethically Balanced Life UK 14/05/2007
FL F&C Responsible UK Equity Income AP Ethically Balanced Pension Income 01/02/2007
FL F&C Responsible UK Growth AP Ethically Balanced Pension UK 14/05/2007 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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Resources, Affiliations & Corporate Strategies

FL HSBC Amanah Global Equity Index Pn Faith Based Pension Global 01/12/2004
FL Impax Environmental Markets (Ireland) Environmentally Themed Life Global 01/05/2007
FL Jupiter Ecology Environmentally Themed Life Global 01/05/2007
FL Jupiter Ecology AL Environmentally Themed Life Global 24/07/2006
FL Jupiter Ecology AP Environmentally Themed Pension Global 24/07/2006 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.

Other SRI Features

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Resources, Affiliations & Corporate Strategies

FL Jupiter Ecology EP S1 Environmentally Themed Pension Global 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.

Other SRI Features

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Resources, Affiliations & Corporate Strategies

FL Jupiter Ecology Pn Environmentally Themed Pension Global 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.

Other SRI Features

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Resources, Affiliations & Corporate Strategies

FL Jupiter Ecology XP 2 Environmentally Themed Pension Global 02/01/2008 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

Other SRI Features

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Resources, Affiliations & Corporate Strategies

FL Kames Ethical Cautious Managed EP Negative Ethical Pension Mixed Asset 06/05/2008 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

FL Kames Ethical Corporate Bond Negative Ethical Life Fixed Interest 27/10/2006
FL Kames Ethical Corporate Bond EP Negative Ethical Pension Fixed Interest 06/05/2008 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

FL Kames Ethical Corporate Bond Pn Negative Ethical Pension 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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Resources, Affiliations & Corporate Strategies

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

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

FL L&G Ethical UK Equity Index Pn Sustainability Themed Pension Passive / Index 01/06/2011 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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Resources, Affiliations & Corporate Strategies

FL Legal & General (PMC) Ethical UK Equity Index Pn Sustainability Themed Pension UK 01/06/2011
FL Premier Ethical Ethically Balanced Pension Mixed Asset 01/05/1996 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

FL Stewardship Ethically Balanced Life UK 01/06/1984
FL Stewardship Corporate Bond Ethically Balanced Life Fixed Interest 04/12/2007
FL Stewardship Income Ethically Balanced Life Income 01/10/2003
FL Stewardship Income Pn NGP Ethically Balanced Pension UK 01/04/2005
FL Stewardship International Ethically Balanced Life Global 01/12/2002
FL Stewardship Managed Ethically Balanced Life Mixed Asset 01/11/1998
FL Stewardship Managed NGP Ethically Balanced Pension UK 10/09/1999
FL Stewardship Managed Pn Acc Ethically Balanced Pension Mixed Asset 02/11/1998
FL Stewardship Pn Acc Ethically Balanced Pension UK 01/06/1984
FNW F&C Responsible UK Income Ethically Balanced Life Income 21/07/2006
FNW Jupiter Ecology Environmentally Themed Life Global 26/07/2006
FNW Kames Ethical Cautious Managed Negative Ethical Life Mixed Asset 06/06/2007
FNW Kames Ethical Corporate Bond Negative Ethical Life Fixed Interest 21/07/2006
FNW Standard Life Ethical Negative Ethical Life UK 13/12/2005
Foresight Solar VCT PLC Ord 1P Environmentally Themed Investment Trust Other 02/11/2010
FP WHEB Sustainability Sustainability Themed OEIC/Unit Trust Global 26/05/2009 More Info (click to view)

SRI / Ethical Overview

The FP WHEB Sustainability Fund is a long-only global equity Fund, with a multi-thematic focus on investing in “solutions to sustainability challenges”. Long-term social, demographic, environmental and resource challenges are reshaping the global economic landscape; creating new investment opportunities for companies providing solutions to these challenges, and growing risks for those sectors that deplete human and natural capital. We have identified nine diverse themes with superior long-term growth prospects, ranging from Resource Efficiency and Water to Health and Education. Environmental, Social and Governance analysis, along with other long term qualitative measures of corporate strength and resilience, forms an integral part of our investment analysis. 

SRI Policies (Primary strategy in bold)

  • Environmental policy Has policy which states that the fund considers environmental issues (eg 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 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.
  • 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.
  • 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 for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.
  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such 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).
  • Avoids tobacco (production) Does not invest in manufacturers or tobacco (or related) products. The fund however may invest in retailers of such products (eg supermarkets or hotels.)
  • Avoids armaments manufacture 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 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.

Other 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. (This means - in practice - 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.
  • 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 Such funds are likely to have attributes that some faith based investors may welcome such as opposition to armaments, gambling and alcohol.
  • 'Strictly' screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.
  • Limited/few ethical exclusions This fund avoids companies based on limited list of ethical exclusions (relative to other ethical funds)

Links

SRI / Ethical Policy

The investment philosophy of the fund is built around sustainability, growth, quality and valuation. The fund is focused on nine sustainable investment themes; five environmental (cleaner energy, environmental services, resource efficiency, sustainable transport and water management) and four social themes (education, health, safety and well-being); Individual stocks are selected through a ‘bottom-up’ stock-by-stock fundamental and rigorous research process.

Sustainable growth 

  • The fund is focused exclusively on companies providing solutions to sustainability challenges; 
  • We add value through expert understanding of the sustainability themes, new technologies and business models as well as through individual stock selection based on superior insights into companies in our portfolio. 
  • Focusing on companies that provide solutions to critical environmental and social pressures confronting society creates an investment universe with superior growth prospects. 
  • From this universe we invest in sectors and themes with high growth that are typically under- appreciated by the broader market. 


Quality 

  • High quality companies are more likely to capture growth opportunities, and we believe that a company’s environmental, social and governance (ESG) profile is an important and under-appreciated indicator of quality. 
  • Our research combines ESG with traditional financial analysis at every stage of a methodical process revealing important information about a company’s growth potential and risk profile. 
  • We also believe that engaging with companies to challenge them on a range of ESG issues, and analysing their responses, further adds to our knowledge and understanding of a company.


Valuation 

  • The culmination of our investment process is to determine whether a company is attractively valued, or what would represent an attractive entry point for a stock. 
  • The fund style is best described as quality, sustainable “growth at the right price” (GARP). 
  • We use a range of valuation techniques, both on an absolute basis and relative to a bespoke global peer group of comparable companies. 
  • We also use an historical perspective to assess the range of valuations over a longer time period 


Top-down Theme Selection 

We live in a rapidly and profoundly changing world. Successful thematic investing is about understanding these changes and investing in those parts of the market that benefit from them, while avoiding those that suffer. We have identified four ‘mega-trends’ that are exerting a powerful influence over the development of the global economy. The four trends we have selected are not intended to be comprehensive, but focus above all on the key social and environmental challenges that are playing an increasingly central role in shaping the global economy. The trends we have identified are: 
1. Resource scarcity 
2. Ageing population 
3. Rising population/rising living standards 
4. Globalisation

It is our conviction that these trends will persist for decades and are creating real market opportunities for companies providing solutions to mitigate or ease the challenges that these forces create.

We have selected nine investment themes which we use to focus our attention on companies that provide solutions to the challenges posed by the mega-trends and therefore have the potential to significantly grow their earnings. They include four social and five environmental themes:

Negative Ethical Screens

The fund does not employ negative screens, but it is worth stressing that the positive screening approach means that the fund has zero/immaterial exposure to controversial industries such as fossil fuel extraction, cigarette manufacturing, gambling, pornography and weapons manufacture as these industries do not form a part of the fund’s investment themes and so cannot be held in the fund. Furthermore, the fund will not have any exposure to the manufacturing of controversial weapons such as cluster munitions and land mines, in line with international regulations banning investment in these industries (see for example http://www.stopexplosiveinvestments.org/legislation).

Active Company Engagement

Engagement is both an output of, and an input into, the investment process.  As an output, engagement 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.  As an input, engaging with companies is a further 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.  

The Themes: well diversified growth opportunities 

Resource Efficiency: Driven by raw material scarcity and cost, demand for resource efficiency technologies is anticipated to grow from US$317bn in 2009 to US$1.2trn by 2020. Key sub sectors we focus on include energy storage, low energy lighting, process management, energy services, insulation and building efficiency.

Environmental Services: Regulators around the world continue to push higher environmental standards to address environmental contamination. US waste management alone was worth US$75bn with environmental consulting worth a further US$25bn in 2011. Key areas of focus include environmental consulting, waste treatment and recycling, and pollution control and monitoring. 

Water Management: The natural resource with no substitute, water is also increasingly under pressure as population growth and urbanization and industrialisation in water-stressed regions adds to demand. The US$450bn theme includes 13 sub sectors covering defensive utilities as well as new growth technologies in purification, desalination, irrigation and water treatment. 

Health: Growing demand for healthcare affects both developed and emerging economies such as China and Brazil, where spending is anticipated to grow from US$45bn to US$72bn from 2010-2020. However, this demand is matched by growing pressure on healthcare budgets. Therefore, an area we prioritise is companies delivering healthcare at reduced cost including healthcare IT, diagnostics and homecare, thus delivering both cost controls and technological advance. 

Well-being: A counterpart to demand for healthcare is a growing industry in health, fitness and palliative care. In part driven by rising levels of obesity and ageing around the world, consumers are increasingly focused on healthy products, fitness and palliative care. Sub-sectors in this area include elderly care and support (a US$140bn industry in the US alone), fitness (a US$19bn industry in the US) and healthy and ‘ethical’ food.

Cleaner Energy: With a strong long-term growth profile, clean energy technology provides a solution to climate change but also to energy security and resource scarcity and is still poised to make a major contribution to global electricity supply. China alone expects 15% of energy to come from renewables by 2020. Key sub-sectors include solar and wind energy, marine energy, geothermal, biomass and waste-to-energy.

Sustainable Transport: Supported by demands for increased resource efficiency, rising regulatory standards around automotive emissions, and growing levels of urbanisation and congestion, the sustainable transport theme is well-positioned for long-term growth. Key areas in the theme include emission reduction, fuel efficiency, hybrid and electric vehicle, bus and rail, and video-conferencing.

Safety: Driven in part by rising living standards, demographics, increased trade across regions and urbanisation, greater security is increasingly an integral part of industrial, transportation, health, commercial and on-line activity. Key areas of focus include fire safety, product testing, automotive safety and on-line security.

Education: Education is often highlighted as one of the two most important areas of discretionary expenditure for emerging middle classes (the other is health). Demographic change is also supporting increased demand for ‘life-long learning’. Straddling many sectors we focus on the whole value chain from information technologies to corporate and professional training and educational support services.

Resources, Affiliations & Corporate Strategies

Investment Team

The Investment Team of 4 combines a range of complementary skills and experience, including fund management, accountancy, corporate finance and environmental expertise.  Tim Dieppe is the lead fund manager and makes the final investment decision, but the approach is collaborative and all members of the team are involved in the discussion on each investment decision.  The objective is that each member of the investment team will feel responsible for the performance of the total portfolio.  The team actively encourages challenging of each other’s ideas, being conscious of the risks of groupthink. The fact that team members have a variety of backgrounds also mitigates groupthink and other behavioural biases.
 
Tim Dieppe, ASIP (Partner, Fund Manager)
Tim has been manager of the FP WHEB Sustainability Fund since April 2012.  He repositioned the fund to closely resemble the Industries of the Future fund which he managed for seven years at Henderson Global Investors. 

Seb Beloe, DIC, CEnv (Partner, Head of Sustainability Research)
Seb is Head of Sustainability Research and previously had the same role at Henderson Global Investors. Prior to Henderson, Seb was the Vice President of Research and Advocacy at SustainAbility. 

Ted Franks, Chartered Accountant, CFA (Partner, Associate Fund Manager)
Ted helped to launch the Sustainability Fund in June 2009.  Before joining WHEB, Ted held corporate finance and accountancy roles at Dresdner Kleinwort and KPMG, advising on investments in the renewable energy, water, waste and healthcare sectors with a total value of over €15bn over seven years. 

Ty Lee, CFA (Senior Analyst)
Ty works with the rest of the investment team carrying out in-depth analysis of companies in the portfolio and potential stock ideas.  Prior to joining WHEB, Ty held consulting roles at UOB Asia in Hong Kong, and at Morgan Stanley and Accenture.

Other resources

The team uses a wide range of external sources of information as inputs into the investment process.

We have a research relationship with Sustainalytics which provides data on ESG factors for portfolio holdings and potential investments. We use media monitoring services Factiva and Meltwater to monitor for ESG news items which are not always picked up on the usual financial newswires. We follow NGO activity and research in areas relevant to the fund. ESG factors are periodically also assessed across the fund. The team assesses the relative risks of companies held in the fund to corrupt practices, using a red flag system the team developed together with PWC. This has led to engagement with some of our holdings on how companies go about managing those risks. In another exercise, the tax rates of fund holdings were assessed and which led to engagement with certain companies about how aggressive their tax management is. 

 

Halifax Ethical C Ethically Balanced OEIC/Unit Trust Global 07/01/1994
Henderson Responsible Ownership Corporate Activity Overlay 29/01/2016 More Info (click to view)

SRI / Ethical Overview

Responsible ownership/investor stewardship – Henderson implements a comprehensive Responsible Investment Policy through active management, integration of ESG factors into investment decision making, voting and company engagement. This is applied across Henderson’s entire range of assets (£81.5bn). Link here: https://www.henderson.com/henderson/content/responsible-investment 

Engagement - We take an active approach to communicating our views to companies and seeking improvements where we believe there are shortcomings in performance, or a company has failed to apply appropriate standards, or to provide adequate disclosure. We will continue our dialogue with the company over an extended period if necessary. 

Voting - We believe that voting at general meetings is an important aspect of corporate stewardship and a means of signalling shareholder views on board policy, practices and performance. We exercise voting rights on behalf of clients at all UK and global meetings. Where voting impediments are in place, such as share blocking, we vote on a case-by-case basis.

Henderson's engage on all equity and fixed interest assets in all geographic regions.

SRI Policies (Primary strategy in bold)

  • 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 (eg 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.

Other SRI Features

  • 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 invests 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.

Links

SRI / Ethical Policy

Henderson implements a comprehensive Responsible Investment Policy through active management, integration of ESG factors into investment decision making, voting and company engagement. 

The primary route for company engagement on stewardship-related issues is the regular meetings fund managers have with the companies that they invest in. Henderson’s fund managers hold in excess of 2,000 company meetings per year. Meetings incorporate a wide range of topics, including capital structure, mergers and acquisitions (M&A), management succession, and also environmental and social issues where relevant. The Governance and Responsible Investment (GRI) Team works closely with fund managers and highlights significant ESG risks ahead of company meetings. In addition, the team often leads on thematic and collaborative engagement work. During 2015 the GRI team engaged with over 100 companies on a wide range of ESG issues. 

The Henderson Global Responsible Investment Committee oversees and reviews the implementation of the Responsible Investment Policy and any other related corporate governance and responsible investment matters within Henderson that may arise. The committee is composed of representatives of our equities, fixed income and multi-asset teams, members of our Governance and Responsible Investment Team and our distribution team. The committee is responsible for evaluating the effectiveness of our corporate governance and corporate responsibility work in influencing companies and generating analysis of value to our investment decision-making. 

We exercise voting rights on behalf of clients at meetings of all companies in which we have a holding. The only exception to this is meetings where share blocking or other restrictions on voting are in place. Where we have taken a decision not to support a management proposal we will, where practicable, seek to raise the issues with the company prior to voting. To assist us in assessing the corporate governance of investee companies we subscribe to ISS (an independent proxy voting adviser). ISS provides voting recommendations based upon Henderson’s corporate governance policy. Corporate governance specialists in Henderson scrutinise the ISS custom policy research, and supplement this with in-house research and engagement. We disclose our global voting record in full on our website. 

Day-to-day responsibility for overseeing voting decisions lies with the Governance and Responsible Investment Team. Voting decisions are made in close consultation with fund managers and analysts. Ultimate voting authority rests with individual portfolio managers, who are responsible for ensuring that votes are exercised in the best interests of fund beneficiaries. Our voting decisions are implemented electronically via the ISS ProxyExchange voting platform.

Resources, Affiliations & Corporate Strategies

We take an active approach to communicating our views to companies and seeking improvements where we believe there are shortcomings in performance, or a company has failed to apply appropriate standards, or to provide adequate disclosure. We will continue our dialogue with the company over an extended period if necessary. Escalation of our engagement activities will depend upon the company’s individual circumstances. Actions may include communications through the company’s brokers, direct engagement with the chairman or non-executive directors or joint intervention with other shareholders, and where appropriate, voting against board proposals.  

We recognise that in many instances joint action by shareholders or bondholders has the potential to be more effective than acting alone. This is especially so where they have a clear common interest, such as in times of corporate distress. Our policy is to pursue opportunities for collaborative engagement in such circumstances.

Henderson is an active participant in a number of organisations that facilitate collaborative engagement, such as the NAPF, the Investment Association, the Investor Forum, the Asian Corporate Governance Association and the UNPRI Clearinghouse. Please see the Henderson responsible investment website for more details.  

The Governance and Responsible Investment (GRI) team works closely with our investment teams to assist in the implementation of our policy. The team provides support to fund managers on research and engagement and leads on our participation in various external ESG initiatives. The GRI team is also responsible for overseeing our proxy voting process on behalf of fund managers.

Henderson ESG Integration Corporate Activity Integrated 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)

  • 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 (eg 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.

Other SRI Features

  • 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 invests 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.

Links

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.

Henderson Global Care Growth A Sustainability Themed OEIC/Unit Trust Global 01/08/1991 More Info (click to view)

SRI / Ethical Overview

A thematic global growth fund with strict ethical criteria. Ten sustainability themes drive the idea generation. The five environmental themes are Efficiency, Cleaner Energy, Water Management, Sustainable Transport and Environmental Services. The five social themes are Health, Knowledge & Technology, Quality of Life, Safety and Social Property & Finance. The fund managers employ a disciplined bottom up stock selection process which includes both detailed financial analysis and ESG analysis. The fund also has negative ethical investment criteria which can be found on the fund website. A third party provider (EIRIS) is used to implement the negative ethical criteria.

SRI Policies (Primary strategy in bold)

  • Environmental policy Has policy which states that the fund considers environmental issues (eg 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 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.
  • 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.
  • 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 for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.
  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such 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).
  • Avoids tobacco (production) Does not invest in manufacturers or tobacco (or related) products. The fund however may invest in retailers of such products (eg supermarkets or hotels.)
  • Avoids armaments manufacture 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 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.

Other SRI Features

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

Links

SRI / Ethical Policy

Henderson’s Global Care Growth Fund targets companies that are growing sustainably. The investment team looks at both positive and negative selection criteria; the positive selection is a result of sustainability themes, Environmental, Social, Governance (ESG) research and fundamental stock analysis; the negative selection is based on ethical screens conducted by EIRIS, an industry leading ethical research company.

The fund tends to invest in mid-sized companies that are developing innovative products or services with the aim of increasing productivity, whether it is in the supply of energy or the delivery of healthcare. These companies have strategies aligned with the long-term themes that are shaping our world. Sustainability runs through the investment process. We are looking for quality, well governed businesses, and those which benefit from a clear alignment of management and shareholder interests. We seek to identify those businesses with sustainable competitive advantages, judicious capital allocation, and sustainable cash flows.

The fund managers work with Henderson’s Governance and Responsible Investment Team to engage with companies when ESG issues are identified. 

The portfolio is comprised of 60 -80 investments and the fund managers maintain geographic weightings to within 3% of the MSCI World Benchmark. 

Resources, Affiliations & Corporate Strategies

The fund managers form a part of the Henderson Global Equities team which is comprised of 7 investment professionals. The team employs a disciplined stock selection process which includes proprietary financial and ESG analysis. The fund managers perform their own research as well as being responsible for portfolio construction. 

In addition to the expertise from other investment teams at Henderson, the Global Equities team also sources research from sell side analysts. For ESG research the fund managers have access to various external providers such as MSCI, EIRIS, and Trucost. They also work with Henderson’s Governance and Responsible Investment team. EIRIS is employed to conduct the negative ethical screening.

Henderson Global Care Managed A Ethically Balanced OEIC/Unit Trust Mixed Asset 01/03/1996 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Environmental policy Has policy which states that the fund considers environmental issues (eg 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 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.
  • 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.
  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.
  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such 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).
  • Avoids tobacco (production) Does not invest in manufacturers or tobacco (or related) products. The fund however may invest in retailers of such products (eg supermarkets or hotels.)
  • Avoids armaments manufacture 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 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.

Other SRI Features

  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. (This means - in practice - 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.
  • 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 Such funds are likely to have attributes that some faith based investors may welcome such as opposition to armaments, gambling and alcohol.
  • Limited/few ethical exclusions This fund avoids companies based on limited list of ethical exclusions (relative to other ethical funds)

Links

SRI / Ethical Policy

The Henderson Institutional Global Care Managed Fund (the ‘Fund’) aims to provide an ethical fund to investors that adheres to strict investment criteria for stewardship and ethical, sustainable and responsible investment.

The Fund’s investment objective is to achieve above average long-term capital growth by investing in a mix of assets including UK and overseas equities and fixed interests stocks. Individual companies are chosen for their social and environmental leadership in the area within which they operate.

Resources, Affiliations & Corporate Strategies

As part of each team’s research process, research is sourced from company meetings, company financial statements and also sell-side analysts. Each investment idea is generated and fundamentally researched internally by the investment management teams.

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, Company management
Henderson Global Care UK Income A Ethically Balanced OEIC/Unit Trust Income 15/05/1995 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 policy which states that the fund considers environmental issues (eg 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 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.
  • 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.
  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.
  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such 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).
  • Avoids tobacco (production) Does not invest in manufacturers or tobacco (or related) products. The fund however may invest in retailers of such products (eg supermarkets or hotels.)
  • Avoids armaments manufacture 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 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.

Other SRI Features

  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. (This means - in practice - 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.
  • Over 50% large cap This fund invests more than half of its money into very large companies. This will typically mean the that the market capitalisation (or value) of the companies they hold will be over £5 to £10 billion.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices.. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • 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 Such funds are likely to have attributes that some faith based investors may welcome such as opposition to armaments, gambling and alcohol.
  • 'Strictly' screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.

Links

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.
Impax Environmental Leaders Environmentally Themed SICAV/Offshore Global 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 policy which states that the fund considers environmental issues (eg pollution, climate change, resource management, environmental impact)

Other SRI Features

  • Norms focus This fund uses international standards, conventions and 'norms' to help direct where the fund can and can not invest. eg 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. (This means - in practice - 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 Such funds are likely to have attributes that some faith based investors may welcome such as opposition to armaments, gambling and alcohol.

Links

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.

Impax Environmental Markets (Ireland) Fund Environmentally Themed OEIC/Unit Trust Global 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 policy which states that the fund considers environmental issues (eg pollution, climate change, resource management, environmental impact)
  • 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.
  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such 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.

Other SRI Features

  • Norms focus This fund uses international standards, conventions and 'norms' to help direct where the fund can and can not invest. eg 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 Such funds are likely to have attributes that some faith based investors may welcome such as opposition to armaments, gambling and alcohol.

Links

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.

Impax Environmental Markets plc Environmentally Themed Investment Trust Global 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 policy which states that the fund considers environmental issues (eg pollution, climate change, resource management, environmental impact)
  • 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.
  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such 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.

Other SRI Features

  • Norms focus This fund uses international standards, conventions and 'norms' to help direct where the fund can and can not invest. eg 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 Such funds are likely to have attributes that some faith based investors may welcome such as opposition to armaments, gambling and alcohol.

Links

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.

Impax Food and Agriculture Fund Environmentally Themed SICAV/Offshore Global 01/12/2012 More Info (click to view)

SRI / Ethical Overview

The Impax Food and Agriculture Fund seeks to achieve long term capital growth and provide a level of income by investing in companies that are addressing the challenges of sustainable food supply, resource efficiency and nutritious content. We seek to invest in the most innovative leaders in global food and agriculture markets that are:

  • providing solutions to natural resource constraints in the food supply chain 
  • benefiting from exposure to the provision of nutrition within the context of rising consumer demand for better quality, traceable, healthy, natural and safe food 
  • providing solutions to adverse health effects of a poor diet

The Fund invests in companies active in global food and agriculture markets with at least 20% of the company's business derived from that area.

 

SRI Policies (Primary strategy in bold)

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

Other SRI Features

  • Norms focus This fund uses international standards, conventions and 'norms' to help direct where the fund can and can not invest. eg 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 Such funds are likely to have attributes that some faith based investors may welcome such as opposition to armaments, gambling and alcohol.

Links

SRI / Ethical Policy

The Impax Food and Agriculture Fund is solely focused on investing in global food and agriculture 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.

Iona Environmental VCT Ord 0.1p Environmentally Themed Investment Trust UK 22/04/2010
Jupiter Responsible Ownership Corporate Activity Overlay 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)

  • 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.

Other SRI Features

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Jupiter Ecology Inc Environmentally Themed OEIC/Unit Trust Global 01/04/1988 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 policy which states that the fund considers environmental issues (eg pollution, climate change, resource management, environmental impact)
  • 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.
  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.
  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Animal welfare policy The fund has a policy that requires specific animal welfare standards to be adopted by companies in order for them to be allowable for investment within the fund.
  • Animal testing policy The fund has criteria that guide when it can or can not invest in companies that are involved in testing their products on animals. This may mean the fund avoids pharmaceutical companies even where testing is required by law (for safety reasons).
  • Avoids tobacco (production) Does not invest in manufacturers or tobacco (or related) products. The fund however may invest in retailers of such products (eg supermarkets or hotels.)
  • Avoids armaments manufacture Avoids companies that manufacture products intended specifically for military use. (Funds may however invest in manufacturers of products that are used by the military but are not specifically intended for military/defence use.)
  • Measures positive impacts The fund aims to have a positive effect on society and/or the environment. Fund managers of this kind actively aim to measure the impact of their investments in order to ensure they are having the desired effect.
  • Nuclear policy Has a published policy that sets out the fund's position with regard to nuclear power. In most cases this is likely to mean avoidance of companies with significant involvement in the nuclear industry although some funds may require absolute avoidance.
  • Coal, oil &/or gas majors excluded This fund will not invest in the largest coal, oil and/or gas producing companies. Funds vary. Some 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.

Other 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.

Links

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.

Jupiter Green IT PLC Environmentally Themed Investment Trust Global 08/06/2006 More Info (click to view)

SRI / Ethical Overview

The Jupiter Green Investment Trust invests in companies that are providing solutions to environmental problems.

The Trust 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 policy which states that the fund considers environmental issues (eg pollution, climate change, resource management, environmental impact)
  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Governance policy Considers issues relating to corporate governance such as board structure, remuneration, bribery and/or corporate corruption.
  • 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 mean a fund has below average levels of investment in areas such as oil & gas, mining or airlines. 'Best in sector' companies may however be allowable.
  • Coal, oil &/or gas majors excluded This fund will not invest in the largest coal, oil and/or gas producing companies. Funds vary. Some 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.

Other 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.

Links

SRI / Ethical Policy

The Trust 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.

 

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.

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.

Jupiter Responsible Income Acc Environmentally Themed OEIC/Unit Trust UK 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 policy which states that the fund considers environmental issues (eg pollution, climate change, resource management, environmental impact)
  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.
  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such 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).
  • Avoids tobacco (production) Does not invest in manufacturers or tobacco (or related) products. The fund however may invest in retailers of such products (eg supermarkets or hotels.)
  • Avoids armaments manufacture 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.

Other SRI Features

  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. (This means - in practice - 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)

Links

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 

Kames Capital Responsible Ownership Corporate Activity Overlay 01/03/2013 More Info (click to view)

SRI / Ethical Overview

Kames Capital engage on all equity, mixed and property assets in all geographic regions.

SRI Policies (Primary strategy in bold)

  • 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.

Other SRI Features

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Kames Ethical Cautious Managed A Acc Negative Ethical OEIC/Unit Trust Mixed Asset 01/03/2007 More Info (click to view)

SRI / Ethical Overview

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

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

 

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. (This means - in practice - that positive company behaviours will not normally be allowed to override negative activities.)
  • 'Strictly' screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.

Links

SRI / Ethical Policy

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

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

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

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

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

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

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

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

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

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

Resources, Affiliations & Corporate Strategies

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

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

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

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

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

 

Kames Ethical Corporate Bond A Acc Negative Ethical OEIC/Unit Trust Fixed Interest 28/04/2000 More Info (click to view)

SRI / Ethical Overview

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

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

 

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. (This means - in practice - that positive company behaviours will not normally be allowed to override negative activities.)
  • 'Strictly' screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.

Links

SRI / Ethical Policy

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

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

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

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

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

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

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

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

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

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

 

Resources, Affiliations & Corporate Strategies

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

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

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

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

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

 

Kames Ethical Equity A Negative Ethical OEIC/Unit Trust UK 28/04/1989 More Info (click to view)

SRI / Ethical Overview

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

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

 

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. (This means - in practice - that positive company behaviours will not normally be allowed to override negative activities.)
  • 'Strictly' screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.

Links

SRI / Ethical Policy

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

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

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

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

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

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

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

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

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

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

 

Resources, Affiliations & Corporate Strategies

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

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

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

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

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

 

Kames Global Sustainable Equity Fund Sustainability Themed OEIC/Unit Trust Global 21/04/2016 More Info (click to view)

SRI / Ethical Overview

SRI Policies (Primary strategy in bold)

  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.

Other SRI Features

-

Links

-

SRI / Ethical Policy

Fossil fuel areas of exclusion: coal and tar sands.

Resources, Affiliations & Corporate Strategies

L&G Ethical Global Equity Index PMC Pn G17 Sustainability Themed Pension Passive / Index 13/05/2004
L&G Ethical Global Equity Index Pn Sustainability Themed Pension UK 11/05/2010
L&G Ethical Inc Ethically Balanced OEIC/Unit Trust UK 05/07/1999 More Info (click to view)

SRI / Ethical Overview

The L&G Ethical Trust is a UK passive equity fund, which excludes FTSE 350 listed companies that engage in unethical practices based on objective criteria. The fund uses the support of EIRIS, a specialist ethical research company, to establish benchmarking methodology for screening companies.

 

SRI Policies (Primary strategy in bold)

  • Environmental policy Has policy which states that the fund considers environmental issues (eg pollution, climate change, resource management, environmental impact)
  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.
  • Sustainability policy Considers issues relating to the sustainability agenda for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.
  • Animal welfare policy The fund has a policy that requires specific animal welfare standards to be adopted by companies in order for them to be allowable for investment within the fund.
  • Animal testing policy The fund has criteria that guide when it can or can not invest in companies that are involved in testing their products on animals. This may mean the fund avoids pharmaceutical companies even where testing is required by law (for safety reasons).
  • Avoids tobacco (production) Does not invest in manufacturers or tobacco (or related) products. The fund however may invest in retailers of such products (eg supermarkets or hotels.)
  • Avoids armaments manufacture 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.

Other SRI Features

  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. (This means - in practice - 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)

Links

SRI / Ethical Policy

The fund’s investment objective is to secure capital growth from a portfolio of securities for companies whose business conforms to a range of ethical and environmental guidelines set out below.

To apply these criteria we enlisted the support of EIRIS, a specialist ethical research company. Using their established benchmarking methodology for screening companies, we have established an objective basis for including or excluding companies from our ethical portfolio.

Legal & General Ethical Trust guidelines for establishing eligible companies
A company will be considered eligible unless it is involved in the following activities:

Animal testing
A company which has tested (or not disclosed otherwise) its cosmetics products on animals in the last five years, or since it had a fixed cut-off date policy. Or which has tested (or not disclosed otherwise) its cosmetic intermediates on animals in the last five years.

Gambling
A company which derives more than 10% of its reported annual turnover from gambling.

Health and safety convictions
Where any part of the company has been convicted following Health and Safety Executive prosecutions more than once in the last three years.

Human rights
A company with operations in at least five countries listed in EIRIS Category A.

Intensive farming
A company which derives any turnover from intensive pig or poultry farming.

Military – nature of involvement
A company:

  • where its products or services constitute the whole of a weapons system;
  • where its products or services constitute strategic parts for, or the whole of, a nuclear weapons system;
  • which supplies strategic services for nuclear bases;
  • which is a major producer with military sales activities in specific countries.


Nuclear power
A company that owns or operate nuclear power stations.

Ozone depleting chemicals
A company that manufactures or supplies any ozone depleting chemicals.

Pornography

  • which publishes, prints or wholesales pornographic magazines or newspapers.
  • which distributes ‘cut 18 certificate’ films or videos.


Tobacco
A company which derives more than 10% of its reported annual turnover from the production or sale of tobacco or tobacco products.

Sustainable timber
A company which:

  • EIRIS has identified as having an annual usage of over 100,000 cubic metres of timber with no or limited evidence of sustainable timber sourcing standards; which has not addressed allegations of involvement in the extraction, processing, use or retail of uncertified high risk timber species in the last three years;
  • has not addressed allegations of involvement in the extraction, processing, use or retail of timber from High Conservation Value Forests in the last three years; which has not addressed allegations of involvement in the extraction, processing, use or retail of illegally logged timber in the last three years.


Water pollution
A company:

  • which has breached a discharge consent for a Red List substance during the last three years;
  • have exceeded their discharge consents more than ten times in the last year


Investment trusts
All Investment Trusts that form part of the FTSE 350 are also excluded as their investment objectives may include companies that fail to meet our criteria.

FTSE 350 Index
The maximum holding allowed of any one share is 10% of the value of the fund. Where any company makes up more than 10% of the filtered FTSE 350 Index, the accuracy of the tracking of the Index will be affected.

Resources, Affiliations & Corporate Strategies

The majority of research is carried out in-house. We receive research from external sources, including from major investment bank index research teams. The fund uses the support of EIRIS, a specialist ethical research company, to establish benchmarking methodology for screening companies.

Research is an integral part of our portfolio management process and is performed on an ongoing basis to capture all elements that could affect the risk profile of benchmark indices. It is, therefore, most effective if it is carried out by the same professionals who are involved in managing portfolios as they have a thorough knowledge of index products and market conditions.

Day-to-day portfolio management involves monitoring of the portfolio against the benchmark index, management of cash flow (including accruals) and implementation of changes to the index are carried out by the Index Funds team. The team operates in a collegiate manner sharing responsibility for all portfolios managed. As at June 2015 LGIM’s Index Funds team consists of 30 investment professionals with an average industry experience of 14 years.

The fund is assigned a lead fund manager and a secondary fund manager who are both accountable for the performance of the fund. The strategy for the implementation of major index changes is discussed and approved by senior directors within the Index Funds team. 

L&G Ethical Pn G1 Acc Sustainability Themed Pension UK 06/04/2001
L&G Ethical UK Equity Index PMC PN G17 Sustainability Themed Pension Passive / Index 13/05/2004
L&G F&C Responsible Global Equity Pn 3 Ethically Balanced Pension Global 01/11/2011
L&G F&C Responsible UK Equity Growth Pn G25 Ethically Balanced Pension UK 18/04/2006 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

L&G F&C Responsible UK Equity Income Pn G25 Ethically Balanced Pension Income 18/04/2006 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

L&G IM Responsible Ownership Corporate Activity Overlay 01/03/2013 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • 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.

Other SRI Features

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

L&G Jupiter Ecology Pn G25 Environmentally Themed Pension Global 18/04/2006 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.

Other SRI Features

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

L&G Kames Ethical Corporate Bond Pn G25 Negative Ethical Pension Fixed Interest 13/04/2006 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

L&G Kames Ethical Equity Pn G25 Negative Ethical Pension UK 13/04/2006 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Ludgate Environmental Environmentally Themed Investment Trust Global 02/08/2007 More Info (click to view)

SRI / Ethical Overview

SRI Policies (Primary strategy in bold)

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

Other SRI Features

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SRI / Ethical Policy

Jersey Domicile

Resources, Affiliations & Corporate Strategies

LV= Jupiter Ecology Pn Environmentally Themed Pension Global 30/11/2007 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.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

LV=Schroder QEP Global Core Pn S2 Environmentally Themed Pension Global 08/04/2009
M&G PP Light Green Pn Ethically Balanced Pension UK 08/12/1999
Menhaden Capital Plc ORD 1P Unclassified Investment Trust UK 31/07/2015
Metlife Aegon Ethical Equity Negative Ethical Life UK 01/02/2009
Metlife Aegon Ethical Equity Pn Negative Ethical Pension UK 04/02/2009
Metlife Benchmark Jupiter Ecology Environmentally Themed Life Global 04/06/2010
Metlife Benchmark Jupiter Ecology Pn Gr Environmentally Themed Pension Global 06/04/2010 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.

Other SRI Features

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Newton SRI for Charities Unclassified OEIC/Unit Trust Global 17/05/2010
NextEnergy Solar Fund Limited Red Ord Npv Environmentally Themed Investment Trust Other 25/04/2014
Old Mutual Ethical A Acc Negative Ethical OEIC/Unit Trust Global 23/09/2005
OMW Aberdeen Ethical World Equity Ethically Balanced Life Global 28/06/2006
OMW Aberdeen Ethical World Equity Pn Ethically Balanced Pension Global 28/06/2006 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW EAB Old Mutual Ethical Negative Ethical Life Global 13/01/2006
OMW EdenTree Amity European Ethically Balanced Life European 17/10/2008
OMW EdenTree Amity European Pn Ethically Balanced Pension European 17/10/2008 More Info (click to view)

SRI / Ethical Overview

This pension product is linked to the "EdenTree Amity European" 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW EdenTree Amity International Ethically Balanced Life Global 17/10/2008
OMW EdenTree Amity International Pn Ethically Balanced Pension UK 17/10/2008 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW EdenTree Amity Sterling Bond Ethically Balanced Pension Fixed Interest 17/10/2008 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW EdenTree Amity Sterling Bond Ethically Balanced Life Fixed Interest 17/10/2008
OMW EdenTree Amity UK Ethically Balanced Life UK 17/10/2008
OMW EdenTree Amity UK Pn Ethically Balanced Pension UK 17/10/2008 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW Ethical Negative Ethical Life Global 19/02/1992
OMW Ethical Pn Negative Ethical Pension Global 17/02/1992
OMW F&C Responsible UK Equity Growth Ethically Balanced Life UK 15/11/2006
OMW F&C Responsible UK Equity Growth Pn Ethically Balanced Pension UK 15/11/2006 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW F&C Responsible UK Equity Income Ethically Balanced Life UK 29/09/2005
OMW F&C Responsible UK Equity Income Pn Ethically Balanced Pension UK 27/09/2005 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW Henderson Global Care Growth Pn Sustainability Themed Pension Global 23/07/2012 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Social policy Considers social issues - for example human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such the UN Global Compact..

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW Hendersons Global Care Growth Sustainability Themed Life Global 23/07/2012
OMW IPL F&C Stewardship Growth Pn Ethically Balanced Pension UK 04/02/2014
OMW Jupiter Ecology Environmentally Themed Life Global 23/02/2007
OMW Jupiter Ecology Pn Environmentally Themed Pension Global 23/02/2007 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

Other SRI Features

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW Kames Ethical Corporate Bond Negative Ethical Pension Fixed Interest 27/09/2006 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW Kames Ethical Corporate Bond Negative Ethical Life Fixed Interest 27/09/2006
OMW Kames Ethical Equity Negative Ethical Life UK 31/01/2006
OMW Kames Ethical Equity Pn Negative Ethical Pension UK 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW Premier Ethical A Ethically Balanced Life UK 09/06/2006
OMW Premier Ethical Pn A Ethically Balanced Pension UK 09/06/2006 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW Prof Ethical Pn Unclassified Pension Global 01/05/1997
Premier Ethical R Inc Ethically Balanced OEIC/Unit Trust UK 07/07/1986
Pru Jupiter Ecology Pn S3 Environmentally Themed Pension UK 14/09/2012 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.

Other SRI Features

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Pru Kames Ethical Equity Pn Ser A Negative Ethical Pension UK 20/10/2008 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 for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Pru Kames Ethical Equity S2 Negative Ethical Life UK 20/10/2008
Pru L&G Ethical Global Equity Index Pn Sustainability Themed Pension Global 11/07/2011 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.

Other SRI Features

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Pru Royal London Sustainable Leaders Pn Ser A Sustainability Themed Pension UK 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 for example resource usage, environmental impact and / or social issues such as equal opportnities, human rights and adherence to recognised codes.

Other SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Pru Royal London Sustainable Leaders S2 Sustainability Themed Life UK 25/01/2010
Pru Socially Responsible Pn S1 GBP Ethically Balanced Pension UK 13/03/2000
Rathbone Active Income For Charities Negative Ethical OEIC/Unit Trust Mixed Asset 02/07/2012
ReAssure HL Global Socially Responsible Pn 1 Unclassified Pension Global 23/08/2004
RLP Ethical Bond Pn Unclassified Pension Fixed Interest 26/03/2010
RLP Jupiter Ecology Pn Environmentally Themed Pension Global 26/03/2010
RLP UK Ethical Pn Unclassified Pension UK 01/11/1999
Royal London Ethical Bond A Ret Ethically Balanced OEIC/Unit Trust 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 policy which states that the fund considers environmental issues (eg pollution, climate change, resource management, environmental impact)
  • 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.
  • Ethical policies Has a policy that states the fund considers 'ethical' issues for example armaments, tobacco, gambling and / or pornography. These vary significantly - see fund literature for detail.
  • 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).
  • Avoids tobacco (production) Does not invest in manufacturers or tobacco (or related) products. The fund however may invest in retailers of such products (eg supermarkets or hotels.)
  • Avoids armaments manufacture 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.)
  • 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'.

Other SRI Features

  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. (This means - in practice - 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)

Links

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 surveilla