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Fund EcoMarket

the sustainable, responsible and ethical investment information hub

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SRI Classification

SRI Attributes (primary entries only)

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Displaying 364 options from Fund EcoMarket
Print Fund Name SRI Style Product Region Asset Type Launch Date More info
FL Legal & General (PMC) Ethical UK Equity Index Pn Sustainability Themed Pension UK Equity 31/05/2011
Wesleyan Ethical Shares Pn Negative Ethical Pension UK Equity 19/12/2011 More Info (click to view)

SRI / Ethical Overview

SRI Policies (Primary strategy in bold)

  • Animal testing policy The fund has criteria that guide when it can or can not invest in companies that are involved in testing their products on animals. This may mean the fund avoids pharmaceutical companies even where testing is required by law (for safety reasons).

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Invests via Kames Ethical Equity fund

Resources, Affiliations & Corporate Strategies

OMW Aberdeen Ethical World Equity Ethically Balanced Life Global Equity 27/06/2006
Scot Eq Kames Ethical Corp Bond Pn Negative Ethical Pension Europe >50% UK Fixed Interest 15/01/2007 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

SJP Ethical Ethically Balanced Life Global Equity 02/11/1998
Scot Wid Ethical A Negative Ethical OEIC/Unit Trust UK Equity 11/09/1987
OMW IPL L&G Ethical UK Equity Index Pn Ethically Balanced Pension UK Equity 12/04/2017 More Info (click to view)

SRI / Ethical Overview

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Alliance Trust Sustainable Future Cautious Managed Pn S6 Sustainability Themed Pension Global Mixed Asset 17/11/2014
M&G PP Ethical Pn Ethically Balanced Pension UK Equity 08/12/1999
OMW EdenTree Amity Sterling Bond Ethically Balanced Pension UK Fixed Interest 16/10/2008 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW Aberdeen Ethical World Equity Pn Ethically Balanced Pension Global Equity 27/06/2006 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Cler Med Evergreen Pn Ethically Balanced Pension Global Equity 01/03/1990
OMW EdenTree Amity European Ethically Balanced Life Europe Ex-UK Equity 16/10/2008
Zurich Kames Ethical Equity AL Negative Ethical Life UK Equity 10/09/2010
Sterling Kames Ethical Equity Negative Ethical Life UK Equity 30/07/2006
Zurich Kames Ethical Equity ZP Negative Ethical Pension UK Equity 30/07/2006 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

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

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW Hendersons Global Care Growth Sustainability Themed Life Global Equity 22/07/2012
Aviva Royal London Sustainable Diversified Sustainability Themed Life Global Mixed Asset 26/07/2009
BMO (F&C) Responsible Sterling Bond 1 Inc Ethically Balanced OEIC/Unit Trust UK Fixed Interest 30/09/2007 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 / themed / ethical assets under management – overview 

 

  • Fund Size (GBP):   £129.9m as at 30 June 2017
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management:   £1,693m as at 30 June 2017
  • Total value of assets covered by responsible ownership policy:   As at 31 March 2017 our flagship reo® service, a global engagement and proxy voting service that can be applied across equities and corporate credit, covered a total of £108,913m of assets for internal holdings and external clients.
  • Total assets under management:   £187,319m as at 31 March 2017

 

 

SRI Policies (Primary strategy in bold)

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

SRI Features

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

Corporate Activity

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

SRI / Ethical Policy

All stocks considered for investment first undergo screening by members of the 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):

 

Product-based criteria:

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

 

Conduct-based criteria:

  •  Environment
    • Arctic and ecologically-sensitive operations
    • Environmental management
  •  Social
    •  Animal Welfare
    • Health and safety
    • Human rights and oppressive regimes
    • Labour standards
  •  Governance
    • Business ethics

 

The GSI team has a quarterly monitoring system to identify:

 

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

Resources, Affiliations & Corporate Strategies

The F&C Responsible Sterling Bond Fund embodies the contributions of three separate specialist teams, namely the Credit team, the GSI team, and the Responsible Investment Advisory Council, who provide vital input on ethical and sustainability 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 and sustainability credentials, conducted by the GSI team. Finally, the Responsible Investment Advisory Council provides fully independent input on the ethical and sustainability criteria. It must be emphasised that the process remains investment led.

 

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

 

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

 

 

FL Stewardship International Ethically Balanced Life Global Equity 01/12/2002
FL Ethical Safeguard Optimiser S2 Ethically Balanced Life UK Equity 08/04/2009
Henderson Global Care UK Income A Ethically Balanced OEIC/Unit Trust UK Equity Income 14/05/1995 More Info (click to view)

SRI / Ethical Overview

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

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

SRI Policies (Primary strategy in bold)

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

SRI Features

  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Balances company 'pros and cons'/best in sector This fund manager will look at both the 'positive' things companies do and the 'negative' things they do. They will make balanced judgements, in line with their published strategy, before deciding whether or not to invest. Such funds often invest in the best/most ethical companies across most industries, rather than excluding entire sectors. The fund manager may couple this with 'responsible engagement' activity, where they aim to encourage better, more responsible business practices.
  • Eurosif transparency This fund has met the standards of the EUROSIF transparency Code. This means that they are a leading fund in terms of openness and transparency, publishing - for example - extensive information about where they invest and how they deal with companies.
  • Over 50% large cap This fund invests more than half of its money into very large companies. This will typically mean that the market capitalisation (or value) of the companies they hold will be over £5 to £10 billion.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • Faith friendly These funds are likely to have attributes that some faith based investors may welcome such as opposition to armaments, gambling and alcohol.
  • Strictly screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.

Corporate Activity

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

SRI / Ethical Policy

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

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

 

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

 

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

 

Resources, Affiliations & Corporate Strategies

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

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

CM Schroder QEP Global Core Pn Unclassified Pension Global Equity 03/03/2008
Alquity Indian Subcontinent M USD Social Themed SICAV/Offshore* Emerging Markets Equity 29/04/2014
Scot Wid Ethical Pn S2 Negative Ethical Pension UK Equity 24/10/2004 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

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

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Pru Kames Ethical Equity S2 Negative Ethical Life UK Equity 19/10/2008
Royal London Sustainable Managed Income Trust B Acc Sustainability Themed OEIC/Unit Trust Global Fixed Interest 01/12/2012 More Info (click to view)

SRI / Ethical Overview

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

 

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

 

 

SRI / themed / ethical assets under management – overview

 

  • Fund Size (GBP):   £28.76m as of 31 May 2017.
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management:   £11,793.22m as of 31 May 2017.
  • Total value of assets covered by responsible ownership policy:   £1,416.04m as of 31 May 2017     (Please note that this figure only includes our sustainable range, however, RLAM’s Responsible Investment Policy will detail how this is an over-arching approach across most of the firm’s assets).
  • Total assets under management:    £104,507.32m as of 31 May 2017.

 

SRI Policies (Primary strategy in bold)

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

SRI Features

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

Corporate Activity

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

SRI / Ethical Policy

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Resources, Affiliations & Corporate Strategies

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

 

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

 

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

 

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

 

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

 

Rathbone Core Investment Fund for Charities Negative Ethical OEIC/Unit Trust Global Mixed Asset 02/10/2016 More Info (click to view)

SRI / Ethical Overview

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

Fund Manager: Andy Pitt
(Source: Rathbones Monthly factsheet Feb 2017.)

SRI Policies (Primary strategy in bold)

  • Tobacco production avoided Does not invest in manufacturers or tobacco (or related) products. The fund, however, may invest in retailers of such products (e.g. supermarkets or hotels.)
  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

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

Corporate Activity

-

Links

-

SRI / Ethical Policy

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

Resources, Affiliations & Corporate Strategies

FL Ethical Distribution AL Negative Ethical Life UK Mixed Asset 26/05/2002 More Info (click to view)

SRI / Ethical Overview

SRI Policies (Primary strategy in bold)

  • Animal testing policy The fund has criteria that guide when it can or can not invest in companies that are involved in testing their products on animals. This may mean the fund avoids pharmaceutical companies even where testing is required by law (for safety reasons).

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

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

Resources, Affiliations & Corporate Strategies

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

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW Kames Ethical Corporate Bond Negative Ethical Life Not Set Fixed Interest 26/09/2006
SVM All Europe SRI A Responsible Ownership OEIC/Unit Trust Europe Equity 31/10/2006 More Info (click to view)

SRI / Ethical Overview

SRI Policies (Primary strategy in bold)

  • Animal testing policy The fund has criteria that guide when it can or can not invest in companies that are involved in testing their products on animals. This may mean the fund avoids pharmaceutical companies even where testing is required by law (for safety reasons).

SRI Features

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

Corporate Activity

-

SRI / Ethical Policy

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

Resources, Affiliations & Corporate Strategies

Scot Eq Ethical Negative Ethical Life UK Equity 31/07/1989
Jupiter Responsible Ownership Corporate Activity Not Set Unclassified 01/03/2013 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

-

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

BlackRock Kames Ethical Pn A Negative Ethical Pension UK Equity 28/03/2002
Henderson Global Care Growth A Sustainability Themed OEIC/Unit Trust Global Equity 30/07/1991 More Info (click to view)

SRI / Ethical Overview

A thematic global growth fund with strict avoidance 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 avoidance investment criteria which can be found on the fund website. A third party provider (Vigeo EIRIS) is used to implement the negative avoidance criteria.

 

SRI / themed / ethical assets under management – overview

 

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

 

  • Fund Size (GBP):   £534m at 31.3.2017
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management:   £962m at 31.3.2017
  • Total value of assets covered by responsible ownership policy:   All of Henderson’s £103.1bn in AuM is covered by the responsible ownership policy
  • Total assets under management:   Henderson had AuM of over £103.1bn at 31.3.2017

 

SRI Policies (Primary strategy in bold)

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

SRI Features

  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Balances company 'pros and cons'/best in sector This fund manager will look at both the 'positive' things companies do and the 'negative' things they do. They will make balanced judgements, in line with their published strategy, before deciding whether or not to invest. Such funds often invest in the best/most ethical companies across most industries, rather than excluding entire sectors. The fund manager may couple this with 'responsible engagement' activity, where they aim to encourage better, more responsible business practices.
  • Eurosif transparency This fund has met the standards of the EUROSIF transparency Code. This means that they are a leading fund in terms of openness and transparency, publishing - for example - extensive information about where they invest and how they deal with companies.
  • Over 50% large cap This fund invests more than half of its money into very large companies. This will typically mean that the market capitalisation (or value) of the companies they hold will be over £5 to £10 billion.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • Faith friendly These funds are likely to have attributes that some faith based investors may welcome such as opposition to armaments, gambling and alcohol.
  • Strictly screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.
  • Aims to generate positive impacts This fund aims to help deliver positive social or environmental impacts or outcomes. Strategies and approaches vary. Some funds measure outcomes others do not. See fund literature for further information.
  • Available via an ISA This fund is available via a tax efficient ISA product wrapper
  • Clean energy themed This fund invests in clean technology / clean energy companies. See fund information for further details.

Corporate Activity

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

SRI / Ethical Policy

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

 

Positive selection criteria

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

 

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

 

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

 

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

 

ESG integration

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

 

Company engagement

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

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

 

Avoidance criteria

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

 

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

 

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

Resources, Affiliations & Corporate Strategies

 

INTERNAL research resources

 

Henderson wide

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

                                       

Global Sustainable & Responsible Investment team

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

 

The in-house GRI team works closely with the investment managers to assist in identifying and analysing ESG issues. As part of the investment team’s detailed fundamental research, new investments have a checklist which includes areas such as the quality of the management/business standards to assess the return potential of the investment. Companies assessed for inclusion in the portfolio must demonstrate acceptable management of long-term strategic risks and opportunities.

 

EXTERNAL research resources

           

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

 

Other sources of external research are:

 

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

 

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

Castlefield B.E.S.T. Income Fund Ethically Balanced OEIC/Unit Trust UK Equity Income 01/05/2006 More Info (click to view)

SRI / Ethical Overview

In addition to traditional business and financial criteria, the fund's investment objectives include consideration of environmental, ethical, social, governance and other similar issues. This is reflected in the name of the Fund where "B.E.S.T" is intended to indicate the investment criteria that will be applied to the Fund: Business & financial, Environmental & ethical, Social & governance; and Transparency.

 

SRI / themed / ethical assets under management – overview

 

  • Fund Size (GBP):   c.£27.1 (as at 11 August 2017)
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management:   c.£224
  • Total value of assets covered by responsible ownership policy:   c.£224m
  • Total assets under management:   c.£600m

 

 

SRI Policies (Primary strategy in bold)

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

SRI Features

  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Over 50% large cap This fund invests more than half of its money into very large companies. This will typically mean that the market capitalisation (or value) of the companies they hold will be over £5 to £10 billion.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • Faith friendly These funds are likely to have attributes that some faith based investors may welcome such as opposition to armaments, gambling and alcohol.
  • Strictly screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.
  • Aims to generate positive impacts This fund aims to help deliver positive social or environmental impacts or outcomes. Strategies and approaches vary. Some funds measure outcomes others do not. See fund literature for further information.
  • Available via an ISA This fund is available via a tax efficient ISA product wrapper

Corporate Activity

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

SRI / Ethical Policy

The Castlefield investment team employ both negative and positive screening criteria to ensure that we remain true the Castlefield approach of “Thoughtful Investing”. The B.E.S.T investment selection methodology identifies investments not only based on traditional financial criteria, but also on a range of other critical success factors. To Castlefield, issues like environmental and social impact, good standards of corporate governance and overall transparency are not just ‘nice to have’; they’re key to generating sound returns, linked to a proper appreciation of risk, defined in its widest sense. This involves excluding companies that are incompatible with this investment view. Exclusion criteria include:

 

•             Companies whose main business is the manufacture and/or retail of alcoholic beverages.

•             Companies involved in the manufacture of animal-tested cosmetics.

•             Companies involved in the retailing of fur, or products containing fur.

•             Companies in the Aerospace & Defence industry.

•             Companies in the Oil & Gas Producers, and Mining industry sectors.

•             Companies in the Gambling industry.

•             Companies involved in the generation of electricity from nuclear power are excluded.

•             Companies involved in pornography, where this is a main part of their business.

•             Companies in the tobacco industry sector are excluded.

 

Fund manager, Simon Holman, will also look to favour companies that offer benefits to society and seek to mitigate their environmental impact through implementation of progressive policies or the generation of clean energy and technology.

Resources, Affiliations & Corporate Strategies

Castlefield is a small firm that specialises in the provision of ethical investment options. As such, the idea of Thoughtful Investing is ingrained into our investment approach meaning everyone on the investment team helps

to analyse potential holdings according to the B.E.S.T principles. Simon Holman is the fund manager and so has the final say on investment decisions following research and discussion amongst the 10 strong team.  The investment team can be found here: http://www.castlefield.com/about-castlefield/meet-the-team/ 

 

We subscribe to the Ethical Screening database to research the investable universe according to a wide range of criteria. We also subscribe to IVIS (Institutional Voting Information Service) in order to get detailed information on forthcoming company votes. This helps us carry out our Stewardship duties more effectively.

Wesleyan Ethical Shares Negative Ethical Life UK Equity 19/12/2011
FL Jupiter Ecology AP Environmentally Themed Pension Global Equity 23/07/2006 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.

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Alliance Trust Sustainable Future Absolute Growth S1 Sustainability Themed Life Global Equity 24/06/2001
Canlife F&C Responsible Sterling Bond LS4 Ethically Balanced Life UK Fixed Interest 01/12/2005
SL Kames Ethical Corporate Bond S5 Negative Ethical Life UK Fixed Interest 08/02/2006
Aviva Alliance Trust Sustainable Future Cautious Managed S4 Sustainability Themed Life Global Mixed Asset 17/11/2014
Scot Eq Ethical Cautious Acc Negative Ethical Life Global Mixed Asset 31/08/1998
SIP Jupiter Ecology S6 Environmentally Themed Life Global Equity 01/01/1970
FNW Jupiter Ecology Environmentally Themed Life Global Equity 25/07/2006
Aviva Royal London Select Portfolio (20-60% Shares) Sustainability Themed Life Europe >50% UK Mixed Asset 05/04/2006
Scottish Widows (SWIP) Responsible Ownership Corporate Activity Not Set Unclassified 01/03/2013 More Info (click to view)

SRI / Ethical Overview

SWIP (Scottish Widows) engage on all equity mixed and property assets in all geographic regions.

SRI Policies (Primary strategy in bold)

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SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Standard Life Investments Responsible Ownership Corporate Activity Not Set Unclassified 29/01/2016 More Info (click to view)

SRI / Ethical Overview

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

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

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

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

SRI Policies (Primary strategy in bold)

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SRI Features

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Corporate Activity

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

SRI / Ethical Policy

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

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

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

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

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

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

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

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

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

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

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

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

Resources, Affiliations & Corporate Strategies

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

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

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

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

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

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

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

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

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

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

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

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

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

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

FL Ethical Distribution AL Acc Negative Ethical Life UK Mixed Asset 30/04/2008 More Info (click to view)

SRI / Ethical Overview

SRI Policies (Primary strategy in bold)

  • Animal testing policy The fund has criteria that guide when it can or can not invest in companies that are involved in testing their products on animals. This may mean the fund avoids pharmaceutical companies even where testing is required by law (for safety reasons).

SRI Features

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Corporate Activity

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Links

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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

OMW Henderson Global Care Growth Pn Sustainability Themed Pension Global Equity 22/07/2012 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

SLFC Green Pn Environmentally Themed Pension Global Equity 25/06/1992
Epworth Affirmative Equity Faith Based OEIC/Unit Trust UK Equity 30/08/2001
FL F&C Responsible UK Equity Income AP Ethically Balanced Pension UK Equity Income 01/02/2007
L&G Kames Ethical Equity S2 Negative Ethical Life Not Set Equity 14/07/2015
Aviva Alliance Trust Sustainable Future UK Growth Pn S2 Sustainability Themed Pension UK Equity 05/04/2001 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Jupiter Ecology Pn S6 Environmentally Themed Pension Global Equity 06/04/2008 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

L&G F&C Responsible UK Equity Income Pn G25 Ethically Balanced Pension UK Equity Income 17/04/2006 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Menhaden Capital Plc ORD 1P Unclassified Investment Trust Global Equity 30/07/2015
Aegon Ethical (RR) Pn Negative Ethical Pension UK Equity 28/09/2014
Impax Environmental Markets plc Environmentally Themed Investment Trust Global Equity 22/02/2002 More Info (click to view)

SRI / Ethical Overview

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

  

SRI Policies (Primary strategy in bold)

  • Environmental policy Has a policy which states that the fund considers environmental issues (e.g. pollution, climate change, resource management, environmental impact)
  • Sustainability policy Considers issues relating to the sustainability agenda (e.g. resource usage, environmental impact and/or social issues such as equal opportunities, human rights and adherence to recognised codes).
  • Social policy Considers social issues (e.g. human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such as the UN Global Compact).
  • Governance policy Considers issues relating to corporate governance such as board structure, remuneration, bribery and/or corporate corruption.
  • Measures positive impacts The fund aims to have a positive effect on society and/or the environment. Fund managers of this kind actively aim to measure the impact of their investments in order to ensure they are having the desired effect.
  • Climate change / GHG policy Considers climate change related issues such as greenhouse gas/carbon emissions. Strategies vary but funds that consider climate issues typically require the careful management of climate related risks (and opportunities) if they are to select a company for investment.
  • Invests in clean energy/renewables This fund invests in companies in the clean technology/renewable energy related industries. Fund strategies vary. In practice some may invest a small percentage in this area whereas others may have significant exposure to this area. Check fund literature for details.

SRI Features

  • Norms focus This fund uses international standards, conventions and 'norms' to help direct where the fund can and cannot invest (e.g. the UN Global Compact).
  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • Faith friendly These funds are likely to have attributes that some faith based investors may welcome such as opposition to armaments, gambling and alcohol.

Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Boutique/specialist fund manager This fund management company specialises in sustainable, responsible, ethical, ESG or responsible ownership related investment. This is central to their corporate strategy and influences all investment decision making. Note - different strategies may apply to different fund options. Check fund manager supplied links for further information.

SRI / Ethical Policy

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.

OMW EAB Old Mutual Ethical Negative Ethical Life Global Equity 13/01/2006
Aviva Jupiter Ecology S4 Environmentally Themed Life Global Equity 01/01/1970
FL MyM Liontrust Sustainable Future UK Growth Pn Sustainability Themed Pension UK Equity 27/04/2017 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Blackrock LGIM Ethical UK Equity Index H Sustainability Themed Life UK Equity 28/01/2010
Scottish Widows ThreadneedleUK Social Bond Pn S1 Social Themed Pension UK Fixed Interest 14/11/2016
FL Jupiter Ecology Environmentally Themed Life Global Equity 30/04/2007
Aegon Kames Ethical Equity Pn AOR Negative Ethical Pension UK Equity 15/10/2014 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

FL Kames Ethical Corporate Bond Pn Negative Ethical Pension Europe >50% UK Fixed Interest 31/01/2007 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

EdenTree Amity Global Equity Income fund for Charities A Ethically Balanced OEIC/Unit Trust Global Equity Income 03/04/2011
Zurich Jupiter Ecology CS1 Pn Environmentally Themed Pension Global Equity 26/07/2017
Zurich F&C Stewardship Growth Pn CS1 Ethically Balanced Pension UK Equity 02/12/2013
Aviva Alliance Trust UK Ethical Pn S2 Negative Ethical Pension UK Equity 09/05/1999
Scottish Widows ThreadneedleUK Social Bond Social Themed Life UK Fixed Interest 14/11/2016
BlackRock Aquila Life Over 5 Year Index Linked Pn Nav Unclassified Pension UK Fixed Interest 31/08/1996
EdenTree Amity Balanced Fund for Charities Ethically Balanced OEIC/Unit Trust Global Mixed Asset 03/04/2011
L&G Kames Ethical Corporate Bond Pn G25 Negative Ethical Pension Europe >50% UK Fixed Interest 12/04/2006 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 (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

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

SRI / Ethical Overview

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

 

SRI / themed / ethical assets under management – overview

 

  • Fund Size (GBP):   £440.70m as of 31 May 2017.
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management:    £11,793.22m as of 31 May 2017.
  • Total value of assets covered by responsible ownership policy:   £1,416.04m as of 31 May 2017       (Please note that this figure only includes our sustainable range, however, RLAM’s Responsible Investment Policy will detail how this is an over-arching approach across most of the firm’s assets).
  • Total assets under management:   £104,507.32m as of 31 May 2017.

 

SRI Policies (Primary strategy in bold)

  • Animal testing policy The fund has criteria that guide when it can or can not invest in companies that are involved in testing their products on animals. This may mean the fund avoids pharmaceutical companies even where testing is required by law (for safety reasons).
  • Tobacco production avoided Does not invest in manufacturers or tobacco (or related) products. The fund, however, may invest in retailers of such products (e.g. supermarkets or hotels.)
  • Armaments manufacturers avoided Avoids companies that manufacture products intended specifically for military use. (Funds may, however, invest in manufacturers of products that are used by the military but are not specifically intended for military/defence use.)
  • Limits exposure to carbon intensive industries Aims to reduce or limit exposure to carbon intensive industries which are considered to be major contributors to climate change. Funds vary - but this is likely to mean a fund has below average levels of investment in areas such as oil & gas, mining or airlines. 'Best in sector' companies may, however, be allowable.
  • Coal, oil &/or gas majors excluded This fund will not invest in the largest coal, oil and/or gas producing companies. Funds vary. Some may invest in smaller producers or companies where this is considered to be a relatively minor part of their business.
  • Climate change / GHG policy Considers climate change related issues such as greenhouse gas/carbon emissions. Strategies vary but funds that consider climate issues typically require the careful management of climate related risks (and opportunities) if they are to select a company for investment.
  • Alcohol production excluded (new) This fund avoids companies that are involved in the production of alcohol. See fund literature for further information.
  • Gambling avoidance policy This fund avoids companies with significant involvement in the gambling industry. See fund policy for details.
  • Pornography avoidance policy This fund avoids companies that derive significant income from pornography. See fund details for further information.
  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.

SRI Features

  • RSMR Rated Fund rating agency 'Rayner Spencer Mills Research' have awarded this fund 'rated' status.
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • Available via an ISA This fund is available via a tax efficient ISA product wrapper

Corporate Activity

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

SRI / Ethical Policy

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

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

Alcohol                               Brewing, distilling or selling alcoholic drinks

Armaments                      Manufacturing armaments or nuclear weapons, or associated strategic products

Gambling                          Operating betting shops, casinos or amusement arcades

Tobacco                            Growing, processing or selling tobacco products

Pornography                    Providing adult entertainment services

 

 

 

 

If a company generates more than 10% from any of one the excluded sectors (or 10% of any of the sectors combined), then it is likely that that company’s involvement in that excluded sector is a noteworthy part of their business and strategy.

 

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

 

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

 

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

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

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

Resources, Affiliations & Corporate Strategies

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Scot Wid Environmental Investor A Environmentally Themed OEIC/Unit Trust UK Equity 28/06/1989
Pru Royal London Sustainable Leaders S2 Sustainability Themed Life UK Equity 25/01/2010
FL Kames Ethical Cautious Managed EP Negative Ethical Pension UK Mixed Asset 05/05/2008 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

AXA Wealth AB Ethical Retirement 2005-2007 Pn Core Range Unclassified Pension Global Mixed Asset 02/01/2013
OMW EdenTree Amity International Pn Ethically Balanced Pension Global Equity 16/10/2008 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

-

Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

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

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

-

Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

FL Ethical Distribution AP Acc Negative Ethical Pension UK Mixed Asset 30/04/1998 More Info (click to view)

SRI / Ethical Overview

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

 

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

L&G Ethical Global Equity Index PMC Pn G17 Sustainability Themed Pension Global Equity 12/05/2004
Henderson Global Care Managed A Ethically Balanced OEIC/Unit Trust Global Mixed Asset 01/03/1996 More Info (click to view)

SRI / Ethical Overview

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

 

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

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

 

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

 

SRI / themed / ethical assets under management – overview

 

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

 

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

 

SRI Policies (Primary strategy in bold)

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

SRI Features

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

Corporate Activity

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

SRI / Ethical Policy

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

 

Henderson Global Care Growth Fund

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

 

Positive selection criteria

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

 

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

 

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

 

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

 

ESG integration

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

 

Company engagement

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

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

 

Avoidance criteria

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

 

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

 

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

 

Henderson Global Care UK Income fund

 

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

 

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

Resources, Affiliations & Corporate Strategies

INTERNAL research resources

 

Henderson wide

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

 

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

 

EXTERNAL research resources

           

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

 

Other sources of external research are:

 

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

 

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

LV=Schroder QEP Global Core Pn S2 Environmentally Themed Pension Global Equity 07/04/2009
Royal London Cash Plus M Inc Negative Ethical OEIC/Unit Trust UK Not set 19/06/2011 More Info (click to view)

SRI / Ethical Overview

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

 

SRI / themed / ethical assets under management – overview

 

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

 

 

SRI Policies (Primary strategy in bold)

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

SRI Features

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

Corporate Activity

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

SRI / Ethical Policy

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

 

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

 

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

 

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

 

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

 

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

 

 

Resources, Affiliations & Corporate Strategies

Overview of resources, affiliations and corporate strategies:

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

                                                                                                                                                                               

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

 

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

 

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

 

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

 

 

Aviva Alliance Trust Sustainable Future Managed S1 Sustainability Themed Life Global Mixed Asset 24/06/2001
Cler Med Ethical Pn Negative Ethical Pension Global Hedge 31/10/2000
Zurich Sterling Jupiter Ecology Environmentally Themed Life Global Equity 16/03/2009
FL Kames Ethical Corporate Bond Negative Ethical Life Global Fixed Interest 26/10/2006
Scot Eq Aegon Aberdeen Ethical World Equity Pn Ethically Balanced Pension Global Equity 22/04/2014 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

-

Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Charity Assets Trust Acc Ethically Balanced OEIC/Unit Trust Global Mixed Asset 08/03/2012
Trading Emissions PLC Environmentally Themed Investment Trust Global Equity 24/04/2001
Aviva Alliance Trust UK Ethical NU Pn Negative Ethical Pension UK Equity 09/05/1999 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Metlife Aegon Ethical Equity Pn Negative Ethical Pension UK Equity 04/02/2009
RLP UK Ethical Pn Unclassified Pension UK Equity 01/11/1999
Royal London Sustainable World Trust Sustainability Themed OEIC/Unit Trust Global Mixed Asset 20/09/2009 More Info (click to view)

SRI / Ethical Overview

 

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

 

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

 

 

SRI / themed / ethical assets under management – overview

 

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

 

 

 

SRI Policies (Primary strategy in bold)

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

SRI Features

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