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Fund EcoMarket

the sustainable, responsible and ethical investment information hub

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Displaying 365 options from Fund EcoMarket

Print Fund Name SRI Style Product Region Asset Type Launch Date More info
OMW Kames Ethical Equity Pn Negative Ethical Pension UK Equity 31/01/2006 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Zurich UK Opportunities 2 EL Unclassified Life UK Equity 08/10/1990 More Info (click to view)

SRI / Ethical Overview

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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SRI / Ethical Policy

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

Resources, Affiliations & Corporate Strategies

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

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

UK Mixed Assets

Resources, Affiliations & Corporate Strategies

Scot Wid Environmental Investor A Environmentally Themed OEIC/Unit Trust UK Equity 28/06/1989
Menhaden Capital Plc ORD 1P Unclassified Investment Trust Global Equity 30/07/2015
Henderson Global Care UK Income A Ethically Balanced OEIC/Unit Trust UK Equity Income 14/05/1995 More Info (click to view)

SRI / Ethical Overview

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

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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

Corporate Activity

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

SRI / Ethical Policy

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

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

Resources, Affiliations & Corporate Strategies

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

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

Internal

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

External

  • Henderson uses a wide range of external specialist ESG research, including IVIS, CDP, Directors Deals, MSCI, EIRIS, Trucost, ISS and broker research, Strategist research.
OMW Ethical Negative Ethical Life Global Equity 19/02/1992
Jupiter Responsible Income Acc Environmentally Themed OEIC/Unit Trust UK Equity Income 22/11/1999 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Environmental policy Has a policy which states that the fund considers environmental issues (e.g. pollution, climate change, resource management, environmental impact)
  • Ethical policies Has a policy that states the fund considers 'ethical' issues (e.g.armaments, tobacco, gambling and/or pornography). These vary significantly. Check fund literature for details.
  • Sustainability policy Considers issues relating to the sustainability agenda (e.g. resource usage, environmental impact and/or social issues such as equal opportunities, human rights and adherence to recognised codes).
  • Social policy Considers social issues (e.g. human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such as the UN Global Compact).
  • Governance policy Considers issues relating to corporate governance such as board structure, remuneration, bribery and/or corporate corruption.
  • Animal testing policy The fund has criteria that guide when it can or can not invest in companies that are involved in testing their products on animals. This may mean the fund avoids pharmaceutical companies even where testing is required by law (for safety reasons).
  • Tobacco (production) avoided Does not invest in manufacturers or tobacco (or related) products. The fund, however, may invest in retailers of such products (e.g. supermarkets or hotels.)
  • Armaments manufacturers avoided Avoids companies that manufacture products intended specifically for military use. (Funds may, however, invest in manufacturers of products that are used by the military but are not specifically intended for military/defence use.)
  • Nuclear policy Has a published policy that sets out the fund's position with regard to nuclear power. In most cases this is likely to mean avoidance of companies with significant involvement in the nuclear industry, although some funds may require absolute avoidance.

SRI Features

  • RSMR Rated Fund rating agency 'Rayner Spencer Mills Research' have awarded this fund 'rated' status.
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Balances company 'pros and cons'/best in sector This fund manager will look at both the 'positive' things companies do and the 'negative' things they do. They will make balanced judgements, in line with their published strategy, before deciding whether or not to invest. Such funds often invest in the best/most ethical companies across most industries, rather than excluding entire sectors. The fund manager may couple this with 'responsible engagement' activity, where they aim to encourage better, more responsible business practices.
  • Eurosif transparency This fund has met the standards of the EUROSIF transparency Code. This means that they are a leading fund in terms of openness and transparency, publishing - for example - extensive information about where they invest and how they deal with companies.
  • Limited/few ethical exclusions This fund avoids companies based on limited list of ethical exclusions (relative to other ethical funds)

Corporate Activity

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SRI / Ethical Policy

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

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

Good governance companies are analysed under the following headings:

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

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

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

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

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

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

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

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

Resources, Affiliations & Corporate Strategies

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

FL L&G Ethical UK Equity Index Pn Sustainability Themed Pension UK Equity 31/05/2011 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

  • Ethical policies Has a policy that states the fund considers 'ethical' issues (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

Scot Wid HIFML Ethical 1 Unclassified OEIC/Unit Trust Not Set Unclassified 19/01/2009
Trojan Ethical Income I Acc Unclassified OEIC/Unit Trust Global Equity Income 06/01/2016 More Info (click to view)

SRI / Ethical Overview

SRI Policies (Primary strategy in bold)

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

SRI Features

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

Corporate Activity

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW F&C Responsible UK Equity Income Ethically Balanced Life UK Equity Income 28/09/2005
Royal London Sustainable Leaders Trust Sustainability Themed OEIC/Unit Trust UK Equity 28/05/1990 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Limited/few ethical exclusions This fund avoids companies based on limited list of ethical exclusions (relative to other ethical funds)

Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Integrates ESG factors into all/most fund research This fund manager researches environmental, social and governance issues when deciding whether or not to invest in a company. This applies to all funds, not only those which are promoted as being 'ethical' or 'SRI themed'.

SRI / Ethical Policy

The selection process works on two levels as outlined below:

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

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

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

Resources, Affiliations & Corporate Strategies

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

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

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

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

Zurich Sterling Kames Ethical Cautious Managed Pn ZP Negative Ethical Pension UK Mixed Asset 28/11/2016
Stewart Investors Global Emerging Markets Sustainability A GBP Acc Sustainability Themed OEIC/Unit Trust Emerging Markets Equity 07/04/2009 More Info (click to view)

SRI / Ethical Overview

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

 

SRI Policies (Primary strategy in bold)

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

SRI Features

  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.

Corporate Activity

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

SRI / Ethical Policy

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

There are four key stages:
 

Step 1: Company classification

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

Step 2: Quality assessment

The quality assessment covers three distinct elements:

A.  Quality of management

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

B.  Quality of the franchise

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

C.  Quality of the financials

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

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

Step 3: Valuation and portfolio construction

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

Step 4: Invest, monitor and engage

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

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

 

Resources, Affiliations & Corporate Strategies

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

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

External Research

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

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

Blackrock LGIM Ethical Global Equity Index P Sustainability Themed Life Global Equity 29/03/2010
BMO (F&C) Responsible UK Equity Growth 1 Acc Ethically Balanced OEIC/Unit Trust UK Equity 31/05/1984 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Balances company 'pros and cons'/best in sector This fund manager will look at both the 'positive' things companies do and the 'negative' things they do. They will make balanced judgements, in line with their published strategy, before deciding whether or not to invest. Such funds often invest in the best/most ethical companies across most industries, rather than excluding entire sectors. The fund manager may couple this with 'responsible engagement' activity, where they aim to encourage better, more responsible business practices.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • 'Strictly' screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.

Corporate Activity

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

SRI / Ethical Policy

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

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

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

Exclusion Criteria:
Alcohol
Gambling
Nuclear power generation
Oil sands & arctic drilling
Pornography
Tobacco
Weapons

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

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

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

Resources, Affiliations & Corporate Strategies

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

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

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

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

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

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

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

SRI / Ethical Overview

SRI Policies (Primary strategy in bold)

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

SRI Features

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SRI / Ethical Policy

Fossil fuel areas of exclusion: coal and tar sands.

Resources, Affiliations & Corporate Strategies

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

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Engage Mutual Green Chip Sustainability Themed Life UK Mixed Asset 24/11/1989
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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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Zurich Jupiter Ecology ZP Environmentally Themed Pension Global Equity 16/03/2009 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Kames Capital Responsible Ownership Corporate Activity Not Set Unclassified 01/03/2013 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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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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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

B&CE The People's Pension Fund 0.5Pn Unclassified Pension Global Equity 01/01/1970
Standard Life TM Fulcrum Diversified Absolute Return Pn S9 Unclassified Pension Global Mixed Asset 24/03/2014
Cler Med Evergreen Pn Ethically Balanced Pension Global Equity 01/03/1990
Trading Emissions PLC Environmentally Themed Investment Trust Global Equity 24/04/2001
Standard Life Inv European Ethical Equity Ret Negative Ethical OEIC/Unit Trust Europe Ex-UK Equity 23/09/2007 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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

Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Integrates ESG factors into all/most fund research This fund manager researches environmental, social and governance issues when deciding whether or not to invest in a company. This applies to all funds, not only those which are promoted as being 'ethical' or 'SRI themed'.

SRI / Ethical Policy

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

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

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

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

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

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

Resources, Affiliations & Corporate Strategies

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

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

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

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

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

OMW Kames Ethical Corporate Bond Negative Ethical Pension UK Fixed Interest 26/09/2006 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

SL Kames Ethical Corporate Bond S5 Negative Ethical Life UK Fixed Interest 08/02/2006
OMW Hendersons Global Care Growth Sustainability Themed Life Global Equity 22/07/2012
FL F&C Responsible UK Equity Income AP Ethically Balanced Pension UK Equity Income 01/02/2007
Aviva F&C Responsible Global Equity Pn S6 Ethically Balanced Pension Global Equity 28/09/2008
Scot Eq Ethical Pn Negative Ethical Pension UK Equity 31/03/1988
FNW F&C Responsible UK Income Ethically Balanced Life UK Equity Income 20/07/2006
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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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

RLP Jupiter Ecology Pn Environmentally Themed Pension Global Equity 26/03/2010
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, It is managed against the Balanced Managed Index and is split broadly 40% international, 40% UK equities and 20% global fixed income. The fund’s objective is to achieve above average long-term capital growth by investing in a mix of assets including UK and overseas equities and fixed interest stocks. The Henderson Global Equities team manages the international sleeve of the portfolio and retains overall responsibility for asset allocation decisions. The UK sleeve is managed by the Henderson Global Equity Income team and the global fixed income sleeve is managed by the Henderson Fixed Income team. The international and UK portions of the Fund follow the investment processes of the Global Care Growth Fund and Global Care UK Income Fund respectively.

SRI Policies (Primary strategy in bold)

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

SRI Features

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

Corporate Activity

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

SRI / Ethical Policy

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

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

Resources, Affiliations & Corporate Strategies

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

In addition to the team’s proprietary research activities, there are other in-house and external sources as detailed below.

Internal

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

External

  • Henderson uses a wide range of external specialist ESG research, including IVIS, CDP, Directors Deals, MSCI, EIRIS, Trucost, ISS and broker research, Strategist research, Company management
EdenTree Amity European A Ethically Balanced OEIC/Unit Trust Europe Equity 12/09/1999 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

  • RSMR Rated Fund rating agency 'Rayner Spencer Mills Research' have awarded this fund 'rated' status.
  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Eurosif transparency This fund has met the standards of the EUROSIF transparency Code. This means that they are a leading fund in terms of openness and transparency, publishing - for example - extensive information about where they invest and how they deal with companies.
  • Specialist/boutique fund manager The fund management company that offers this fund specialises in SRI or sustainability focused investment options. They are likely to be a smaller but more focused business and unlikely to have significant investment in companies that are typically avoided by SRI/ethical funds.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • 'Strictly' screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.

Corporate Activity

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

Links

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SRI / Ethical Policy

Ethical Approach

EIM is a pioneer of Socially Responsible Investment (SRI) and launched its first SRI investment fund in 1988. We utilise both negative and positive screening within the investment process. In respect of negative screening, we avoid companies whose activities derive in excess of 10% of their pre-tax profit or turnover from alcohol production, gambling, pornographic and violent material, tobacco production, strategic armaments, animal testing and intensive farming. 

We look for the positive aspects in potential investments to ensure we invest in companies that are making a positive contribution to society and the environment. These may cover good business and corporate governance practices and community relations. We also look for companies promoting good standards of education, environmental management and healthcare. We look favourably upon companies which promote human rights, good labour relations and urban regeneration. As well as our own in-house research (including special thematic reports) we use a range of sources, including independent data from Risk Metrics in respect of Environmental, Social and Governance (ESG) issues.

Ecclesiastical employs both negative and positive screening to its stock selection process and engages with companies before, during and after investing. This process is integrated into our overall investment management process and we use the following ‘screens’ when considering the suitability of an investment.

Positive screening

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

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

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

Negative screening

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

Amity Panel Review

The Amity Panel meet with the fund management and research team 3 or 4 times each year to review the Amity Fund portfolios, the recent investment decisions and to discuss the latest Socially Responsible research and trends. The purpose of the Amity Socially Responsible Investment Advisory Panel is to:-

  • Help to ensure that the Ecclesiastical Amity Range of Funds meet the stated aims and objectives.
  • Provide advice in the formulation of policy in the light of changing social and environmental issues.

The Amity Panel will provide advice to the SRI team in a number of ways

  • Advising on emerging issues or topics relevant to SRI criteria.
  • Provide advice and guidance on individual companies or sectors.
  • Provide advice and guidance on engagement work.

The independent panel is made up of a number of industry experts, including:

  • The Right Reverend Dr Nigel Peyton – The Bishop of Brechin
  • William Oulton – Global Head of Responsible Investments, First State Investments
  • George Prescott – ex Ecclesiastical Deputy CEO and CFO, former ABI board member
  • Helen Crosby – Sustainability Expert.
  • Julie McDowell – Independent Consultant

Resources, Affiliations & Corporate Strategies

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

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

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

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

  • RSMR Rated Fund rating agency 'Rayner Spencer Mills Research' have awarded this fund 'rated' status.
  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Eurosif transparency This fund has met the standards of the EUROSIF transparency Code. This means that they are a leading fund in terms of openness and transparency, publishing - for example - extensive information about where they invest and how they deal with companies.
  • Specialist/boutique fund manager The fund management company that offers this fund specialises in SRI or sustainability focused investment options. They are likely to be a smaller but more focused business and unlikely to have significant investment in companies that are typically avoided by SRI/ethical funds.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • 'Strictly' screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.

Corporate Activity

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

Links

-

SRI / Ethical Policy

Ethical Approach

EIM is a pioneer of Socially Responsible Investment (SRI) and launched its first SRI investment fund in 1988. We utilise both negative and positive screening within the investment process. In respect of negative screening, we avoid companies whose activities derive in excess of 10% of their pre-tax profit or turnover from alcohol production, gambling, pornographic and violent material, tobacco production, strategic armaments, animal testing and intensive farming. 

We look for the positive aspects in potential investments to ensure we invest in companies that are making a positive contribution to society and the environment. These may cover good business and corporate governance practices and community relations. We also look for companies promoting good standards of education, environmental management and healthcare. We look favourably upon companies which promote human rights, good labour relations and urban regeneration. As well as our own in-house research (including special thematic reports) we use a range of sources, including independent data from Risk Metrics in respect of Environmental, Social and Governance (ESG) issues.

Ecclesiastical employs both negative and positive screening to its stock selection process and engages with companies before, during and after investing. This process is integrated into our overall investment management process and we use the following ‘screens’ when considering the suitability of an investment.

Positive screening

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

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

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

Negative screening

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

Amity Panel Review

The Amity Panel meet with the fund management and research team 3 or 4 times each year to review the Amity Fund portfolios, the recent investment decisions and to discuss the latest Socially Responsible research and trends. The purpose of the Amity Socially Responsible Investment Advisory Panel is to:-

  • Help to ensure that the Ecclesiastical Amity Range of Funds meet the stated aims and objectives.
  • Provide advice in the formulation of policy in the light of changing social and environmental issues.

The Amity Panel will provide advice to the SRI team in a number of ways

  • Advising on emerging issues or topics relevant to SRI criteria.
  • Provide advice and guidance on individual companies or sectors.
  • Provide advice and guidance on engagement work.

The independent panel is made up of a number of industry experts, including:

  • The Right Reverend Dr Nigel Peyton – The Bishop of Brechin
  • William Oulton – Global Head of Responsible Investments, First State Investments
  • George Prescott – ex Ecclesiastical Deputy CEO and CFO, former ABI board member
  • Helen Crosby – Sustainability Expert.
  • Julie McDowell – Independent Consultant

Resources, Affiliations & Corporate Strategies

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

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

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

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

FL Jupiter Ecology Environmentally Themed Life Global Equity 30/04/2007
Aviva Royal London Sustainable Leaders S4 Sustainability Themed Life UK Equity 05/04/2006
Aviva Alliance Trust Sustainable Future Defensive Managed Pn S6 Sustainability Themed Pension Global Mixed Asset 17/11/2014
Metlife Benchmark Jupiter Ecology Pn Gr Environmentally Themed Pension Global Equity 05/04/2010 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

EdenTree Amity International A Ethically Balanced OEIC/Unit Trust Global Equity 12/09/1999 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

  • RSMR Rated Fund rating agency 'Rayner Spencer Mills Research' have awarded this fund 'rated' status.
  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Eurosif transparency This fund has met the standards of the EUROSIF transparency Code. This means that they are a leading fund in terms of openness and transparency, publishing - for example - extensive information about where they invest and how they deal with companies.
  • Specialist/boutique fund manager The fund management company that offers this fund specialises in SRI or sustainability focused investment options. They are likely to be a smaller but more focused business and unlikely to have significant investment in companies that are typically avoided by SRI/ethical funds.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • 'Strictly' screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.

Corporate Activity

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

Links

-

SRI / Ethical Policy

Ethical Approach

EIM is a pioneer of Socially Responsible Investment (SRI) and launched its first SRI investment fund in 1988. We utilise both negative and positive screening within the investment process. In respect of negative screening, we avoid companies whose activities derive in excess of 10% of their pre-tax profit or turnover from alcohol production, gambling, pornographic and violent material, tobacco production, strategic armaments, animal testing and intensive farming. 

We look for the positive aspects in potential investments to ensure we invest in companies that are making a positive contribution to society and the environment. These may cover good business and corporate governance practices and community relations. We also look for companies promoting good standards of education, environmental management and healthcare. We look favourably upon companies which promote human rights, good labour relations and urban regeneration. As well as our own in-house research (including special thematic reports) we use a range of sources, including independent data from Risk Metrics in respect of Environmental, Social and Governance (ESG) issues.

Ecclesiastical employs both negative and positive screening to its stock selection process and engages with companies before, during and after investing. This process is integrated into our overall investment management process and we use the following ‘screens’ when considering the suitability of an investment.

Positive screening

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

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

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

Negative screening

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

Amity Panel Review

The Amity Panel meet with the fund management and research team 3 or 4 times each year to review the Amity Fund portfolios, the recent investment decisions and to discuss the latest Socially Responsible research and trends. The purpose of the Amity Socially Responsible Investment Advisory Panel is to:-

  • Help to ensure that the Ecclesiastical Amity Range of Funds meet the stated aims and objectives.
  • Provide advice in the formulation of policy in the light of changing social and environmental issues.

The Amity Panel will provide advice to the SRI team in a number of ways

  • Advising on emerging issues or topics relevant to SRI criteria.
  • Provide advice and guidance on individual companies or sectors.
  • Provide advice and guidance on engagement work.

The independent panel is made up of a number of industry experts, including:

  • The Right Reverend Dr Nigel Peyton – The Bishop of Brechin
  • William Oulton – Global Head of Responsible Investments, First State Investments
  • George Prescott – ex Ecclesiastical Deputy CEO and CFO, former ABI board member
  • Helen Crosby – Sustainability Expert.
  • Julie McDowell – Independent Consultant

Resources, Affiliations & Corporate Strategies

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

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

Impax Environmental Markets plc Environmentally Themed Investment Trust Global Equity 22/02/2002 More Info (click to view)

SRI / Ethical Overview

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

  

SRI Policies (Primary strategy in bold)

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

SRI Features

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

Corporate Activity

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

SRI / Ethical Policy

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

Resources, Affiliations & Corporate Strategies

We are members of, or signatory to the following:

  • UN Principles for Responsible Investment (UNPRI)

  • Institutional Investors Group on Climate Change (IIGCC)

  • Investor Network on Climate Risk (INCR)

  • Carbon Disclosure Project (CDP)

  • UK Sustainable Investment and Finance Association (UKSIF)

  • USSIF

  • UK Stewardship Code

  • Global Impact Investing Network (GIIN)

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

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

SRI / Ethical Overview

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

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

Resources, Affiliations & Corporate Strategies

SJP Ethical Ethically Balanced Life Global Equity 02/11/1998
Scottish Widows ThreadneedleUK Social Bond Pn S1 Social Themed Pension UK Fixed Interest 14/11/2016
Aviva Alliance Trust Sustainable Future Absolute Growth S1 Sustainability Themed Life Global Equity 24/06/2001
Aberdeen Responsible UK Equities Ret Acc Ethically Balanced OEIC/Unit Trust UK Equity 08/05/2006
FL Stewardship International Ethically Balanced Life Global Equity 01/12/2002
OMW Jupiter Ecology Pn Environmentally Themed Pension Global Equity 23/02/2007 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

OMW Aberdeen Ethical World Equity Ethically Balanced Life Global Equity 27/06/2006
AXA Wealth AXA IM Ethical Distribution P Acc Negative Ethical Pension UK Mixed Asset 30/08/2009 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

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

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

EdenTree Amity Balanced Fund for Charities Ethically Balanced OEIC/Unit Trust Global Mixed Asset 03/04/2011
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

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

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

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

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Jupiter Green IT PLC Environmentally Themed Investment Trust Global Equity 07/06/2006 More Info (click to view)

SRI / Ethical Overview

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

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

SRI Policies (Primary strategy in bold)

  • Environmental policy Has 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).
  • Governance policy Considers issues relating to corporate governance such as board structure, remuneration, bribery and/or corporate corruption.
  • Limits exposure to carbon intensive industries Aims to reduce or limit exposure to carbon intensive industries which are considered to be major contributors to climate change. Funds vary - but this is likely 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. Funds that consider such issues typically require careful management of such issues in order for a company to be considered acceptable/attractive.
  • Invests in clean energy/renewables This fund invests in companies in the clean technology/renewable energy related industries. Fund strategies vary. In practice some may invest a small percentage in this area whereas others may have significant exposure to this area. Check fund literature for details.

SRI Features

  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Eurosif transparency This fund has met the standards of the EUROSIF transparency Code. This means that they are a leading fund in terms of openness and transparency, publishing - for example - extensive information about where they invest and how they deal with companies.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.

Corporate Activity

-

SRI / Ethical Policy

The Trust invests in three environmental investment themes:

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

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

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

 

Resources, Affiliations & Corporate Strategies

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

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

Metlife Aegon Ethical Equity Negative Ethical Life UK Equity 01/02/2009
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

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

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

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

  • RSMR Rated Fund rating agency 'Rayner Spencer Mills Research' have awarded this fund 'rated' status.
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Balances company 'pros and cons'/best in sector This fund manager will look at both the 'positive' things companies do and the 'negative' things they do. They will make balanced judgements, in line with their published strategy, before deciding whether or not to invest. Such funds often invest in the best/most ethical companies across most industries, rather than excluding entire sectors. The fund manager may couple this with 'responsible engagement' activity, where they aim to encourage better, more responsible business practices.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • 'Strictly' screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.

Corporate Activity

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

SRI / Ethical Policy

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

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

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

Exclusion Criteria:
Alcohol
Gambling
Nuclear power generation
Oil sands & arctic drilling
Pornography
Tobacco
Weapons

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

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

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

Resources, Affiliations & Corporate Strategies

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

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

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

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

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

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

Scot Eq Ethical Negative Ethical Life UK Equity 31/07/1989
Vanguard SRI Global Stock Fund (UCITS) Negative Ethical SICAV/Offshore* Not Set Unclassified 23/10/2011 More Info (click to view)

SRI / Ethical Overview

Limited avoidance

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

  • Norms focus This fund uses international standards, conventions and 'norms' to help direct where the fund can and cannot invest (e.g. the UN Global Compact).
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Limited/few ethical exclusions This fund avoids companies based on limited list of ethical exclusions (relative to other ethical funds)

Corporate Activity

-

Links

-

SRI / Ethical Policy

UCITS structure (not OEIC). Domiciled in Ireland with GBP share class.

Resources, Affiliations & Corporate Strategies

OMW F&C Responsible UK Equity Growth Ethically Balanced Life UK Equity 15/11/2006
Aviva Investors Responsible Ownership Corporate Activity Not Set Unclassified 01/01/1970 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

-

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Pru Ethical Pn S3 Unclassified Pension UK Equity 05/04/2001
Barclays Charity R Inc Unclassified OEIC/Unit Trust Global Unclassified 08/09/2013
Zurich Ethical CS1 Unclassified Pension Global Equity 23/01/2012
Zurich Sterling Henderson UK Property Responsible Ownership Life UK Property 25/11/2002
Ludgate Environmental Environmentally Themed Investment Trust Global Equity 01/08/2007 More Info (click to view)

SRI / Ethical Overview

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Jersey Domicile

Resources, Affiliations & Corporate Strategies

Aviva Royal London Select Portfolio (20-60% Shares) Sustainability Themed Life Europe >50% UK Mixed Asset 05/04/2006
FL Legal & General (PMC) Ethical UK Equity Index Pn Sustainability Themed Pension UK Equity 31/05/2011
Aviva Alliance Trust Sustainable Future Corporate Bond S1 Sustainability Themed Life Europe >50% UK Fixed Interest 24/06/2001
OMW EAB Old Mutual Ethical Negative Ethical Life Global Equity 13/01/2006
Aviva Royal London Sustainable World Trust S4 Sustainability Themed Life Global Mixed Asset 22/11/2010
7IM Sustainable Balance C Acc Sustainability Themed OEIC/Unit Trust Global Mixed Asset 02/02/2007 More Info (click to view)

SRI / Ethical Overview

Best in Class ESG strategy

High risk areas of production and manufacturing excluded:

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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

Corporate Activity

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

SRI / Ethical Policy

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

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

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

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

Resources, Affiliations & Corporate Strategies

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

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

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

Aviva Alliance Trust UK Ethical Negative Ethical Life UK Equity 09/05/1999
Vanguard SRI European Stock Fund (UCITS) Negative Ethical SICAV/Offshore* Europe Equity 23/10/2011 More Info (click to view)

SRI / Ethical Overview

A 'limited avoidance' fund. 

The Vanguard SRI European Stock Fund employs a passive management or indexing investment strategy designed to achieve the performance of the index, by investing in all, or a representative sample of, index securities that satisfy the application of a screening process for socially responsible investing. The fund will not hold stocks of companies in the index that do not meet specific socially responsible criteria. The Investment Manager will hold each, or a representative sample, of those index securities meeting socially responsible criteria in approximate proportion to its weighting in the index, optimising the fund to match the risk factors and performance of the index.

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

  • Norms focus This fund uses international standards, conventions and 'norms' to help direct where the fund can and cannot invest (e.g. the UN Global Compact).
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Limited/few ethical exclusions This fund avoids companies based on limited list of ethical exclusions (relative to other ethical funds)

Corporate Activity

-

SRI / Ethical Policy

Objective

The fund seeks to provide long-term growth of capital by seeking to achieve the performance of the index that measures the performance of large- and mid-sized common stocks of companies in developed countries.

Vanguard SRI Funds Investment Strategies

SRI Investment Philosophy

In tracking their target indices, Vanguard’s SRI funds will not hold stocks of companies in the indices that do not meet specific “socially responsible” criteria. The investment manager will hold each, or a representative sample, of those index securities meeting socially responsible criteria in approximate proportion to their weightings in the index, optimising the funds to match the risk factors and performance of the index.

Although the funds will refrain from holding stocks of companies contained in the indices but excluded by the SRI screening process, they will seek to perform consistently with the unscreened indices. To accomplish this objective, the funds use an optimiser to select securities. Each fund selects a representative sample of the securities meeting the SRI screening process that approximates the full index in terms of key risk factors and other characteristics. These factors include price/earnings ratio, industry weights, country weights, market capitalisation, dividend yield and other financial characteristics.

Each fund attempts to minimise deviations in currency, country and sector exposures relative to its index. However, it is possible that, if a large index constituent is excluded, there may be a lack of substitutes within the same country and sector, which would result in a potential mismatch of the fund’s weightings relative to the Index. Because the funds will not hold stocks of companies that do not meet socially responsible criteria, they may not track the performance of their target indices as closely as Vanguard’s other index funds.

Negative screen

Vanguard SRI funds use negative screening (exclusion) - in tracking their target indices Vanguard’s SRI funds will not hold stocks of companies in the indices that do not meet specific “socially responsible” criteria as outlined below.

There are five major areas that FTSE uses to exclude securities:

  • Human Rights – Failure to adhere to the Universal Declaration of Human Rights
  • Labour Standards – Violations of the International Labor Organisation’s Declaration on Fundamental Principles and Rights at Work
  • Environment – Violations of the Rio Declaration on Environment and Development
  • Anti-corruption Principles – Failure to adhere to the United Nationals Convention Against Corruption
  • Military Weapons – Production of landmines, cluster bombs, chemical and biological weapons, nuclear weapons

Negative screening produces a more diversified investment universe, making these funds suitable as a core holding in any portfolio. Best-in-class positive index inclusions tend to be less diversified, and thus suitable only as satellite investments.

The screening process is expected to remove 5-10% of the market capitalisation of each fund’s target index. The portfolio manager will use a sampling approach to security selection on the remaining 90-95% of the market capitalisation. Using sophisticated computer programs, the portfolio manager will select securities for the funds that approximate the fundamental and statistical risk factors of the unscreened index, such as country weights, market capitalisation profile, P/B ratio, and volatility.

SRI Engagement

Vanguard will follow its published proxy voting policy with respect to securities held in the SRI funds, and does not intend to take a more “socially responsible” or “activist” role in proxy voting with the SRI funds than it does with its other funds.

We believe that it is important for company officials to communicate regularly with shareholders regarding areas of interest or concern. In addition, shareholders should be provided with channels through which they may communicate with the board. While boards get shareholder "feedback" through the proxy voting process, a "yes/no" vote provides only limited insight into shareholder views.

We have found, through hundreds of meetings and discussions annually, that we can often accomplish more through dialogue than through the ballot. Please note that both proxy voting and engagement activities are focused on Governance, rather than Environmental or Social themes.

Third-party SRI screening agencies employed by FTSE conduct a rigorous analysis of all companies in each benchmark, assign SRI ratings to the companies and make regular re-assessments. Companies that fail to pass the screening are excluded from the universe of securities that are otherwise included in the index. The screening process is expected to remove 5% to 15% of the market capitalisation of each fund’s target benchmark.

Risk characteristics (In Line with the benchmark)

Although the funds will refrain from holding stocks of companies contained in the indices but excluded by the SRI screening process, they will seek to perform consistently with the unscreened indices, aiming to provide you as an investor with the same beta. To accomplish this objective we use an optimisation technique to invest in the securities that pass the SRI screens. Using sophisticated computer programs, we allocate the fund’s investments to securities in weightings that cause the portfolio to resemble the fundamental and statistical risk characteristics of the target index. These factors include price/earnings ratio, industry weights, country weights, market capitalisation, dividend yield and other financial characteristics of stocks.

Each fund will attempt to minimise deviations in currency, country and sector exposures as compared with that of its index. However, it is possible that, if a large index constituent is excluded, there may be a lack of substitutes within the same country and sector, which would result in a potential mismatch of the fund’s weighted holdings relative to the Index.

Stewardship Policy

Vanguard Asset Management, Limited and Vanguard Investments UK, Limited are committed to sound principles of corporate governance and efficient exercise of their governance responsibilities in the context of their activities as an investment manager. VAM acts as a discretionary investment manager for separately managed accounts(accounts) and for certain UK domiciled collective investment schemes and VIUK acts as authorised corporate director/manager (as appropriate) for such schemes (together the Funds).

The Vanguard Group, Inc. is the ultimate parent company of VIUK and VAM (together the UK Companies). The UK Companies place reliance on VGI to administer the proxy voting and stewardship requirements of the Funds and any relevant accounts as proxy voting agent (where clients have extended the ability to vote to Vanguard).

The UK Companies’ approach to stewardship reflects the above arrangements.

The UK Stewardship Code sets out seven principles (collectively, the Principles), which investment managers, such as the UK Companies, are required to comply with or explain why they do not do so. The Principles state that institutional investors should:

  • Publicly disclose their policy on how they will discharge their stewardship responsibilities
  • Have a robust policy on managing conflicts of interest in relation to stewardship and this policy should be publicly disclosed
  • Monitor their investee companies
  • Establish clear guidelines on when and how they will escalate their activities as a method of protecting and enhancing shareholder value
  • Be willing to act collectively with other investors where appropriate
  • Have a clear policy on voting and disclosure of voting activity
  • Report periodically on their stewardship and voting activities

The UK Companies’ Stewardship Policy is part of its broader corporate governance policy. The following overview summarises this policy and voting guidelines, and explains how the UK Companies’ Stewardship Policy addresses each Principle:

Principle 1: Publicly disclose their policy on how they will discharge their stewardship responsibilities.

The UK Companies’ and VGI’s duty to shareholders of the Funds is to maximise the long-term value of the investments held by our Funds. Vanguard advocates effective corporate governance by the companies in which Vanguard funds invest because Vanguard believes that it is an important way to enhance shareholder value.

The board of the Funds and of each of the UK Companies (the Board) has adopted proxy voting procedures and guidelines to govern proxy voting by each such Fund. The Board has delegated oversight of proxy voting to the Proxy Oversight Committee (the Committee), comprising senior officers of VGI. This Committee will report directly to the Board. The UK Companies are subject to these guidelines to the extent the guidelines call for VGI to administer the voting process and implement the resulting voting decisions, and for that purpose, have been approved by the Board of Directors of VGI.

The overarching objective in voting is simple: to support proposals and director nominees that maximise the value of a fund’s/an account’s investments – and those of fund shareholders – over the long term. While the goal is simple, the proposals that the Funds receive are varied and frequently complex. As such, the guidelines adopted by the Board provide a rigorous framework for assessing each proposal. Under the guidelines, each proposal must be evaluated on its merits, based on the particular facts and circumstances as presented.

For ease of reference, the procedures and guidelines often refer to all Funds. However, our policies and practices seek to ensure that proxy voting decisions are suitable for individual Funds. For most proxy proposals, particularly those involving corporate governance, the evaluation will result in the same position being taken across all of the Funds. In some cases, however, funds may vote differently, depending upon the nature and objective of each fund, the composition of its portfolio, and other factors. Accounts will be handled in a similar manner (subject to the specific terms as agreed).

The guidelines incorporate factors the Committee should consider in each voting decision because
many factors bear on each decision. A Fund/account may refrain from voting if that would be in the
Fund’s and its shareholders’/such account’s best interests.

These circumstances may arise, for example, when the expected cost of voting exceeds the expected benefits of voting, or when exercising the vote results in the imposition of trading or other
restrictions. 

In evaluating proxy proposals, VGI considers information from many sources, including but not limited to, the investment adviser, management or shareholders of a company presenting a proposal, and independent proxy research services. We will give substantial weight to the recommendations of the company’s board, absent guidelines or other specific facts that would
support a vote against management. In all cases, however, the ultimate decision rests with the
members of the Committee, who are accountable to each Fund’s Board or the Board of the UK
Companies (as appropriate) for accounts.

While serving as a framework, the voting guidelines cannot contemplate all possible proposals with which a Fund/account may be presented. In the absence of a specific guideline for a particular proposal (e.g., in the case of a transactional issue or contested proxy), the Committee will evaluate the issue and cast the Fund’s vote in a manner that, in the Committee’s view, will maximise the value of the investment, subject to the individual circumstances of the Fund/account.

Principle 2: Have a robust policy on managing conflicts of interest in relation to stewardship and this policy should be publicly disclosed.

The UK Companies and VGI maintain a rigorous policy so that conflicts of interest in the proxy voting and corporate governance programme are addressed. The Board has delegated the day-to-day operations of the Funds’ proxy voting process to the VGI Proxy Voting Group, which the Committee oversees. While most votes will be determined, subject to the individual circumstances of each Fund, by reference to the guidelines as separately adopted by each of the Funds, there may be circumstances when the Proxy Voting Group will refer proxy issues to the Committee for
consideration.

Among the Proxy Voting Group’s functions is to determine and address potential or actual conflicts of interest that may be presented by a particular proxy and elevate such potential or actual conflicts to the Proxy Oversight Committee.

The Proxy Oversight Committee, whose members are senior officers of VGI, does not include anyone whose primary duties include external client relationship management or sales. This clear separation between the proxy voting and client relationship functions is intended to eliminate any potential conflict of interest in the proxy voting process.

In the unlikely event that a member of the Committee believes he or she might have a conflict of interest regarding a proxy vote, that member must recuse himself or herself from the committee meeting at which the matter is addressed and not participate in the voting decision.

Principle 3: Monitor their investee companies.

VGI engages with the boards and management of investee companies with the objective of maximising long-term shareholder value and the UK Companies will monitor this as part of their ongoing oversight of VGI’s investment activity.

As discussed by VGI in “Our views on corporate governance,” VGI believes that it is important for company officials to communicate regularly with shareholders regarding areas of interest or
concern. In addition, shareholders should be provided with channels through which they may
communicate with the board. While boards get shareholder “feedback” through the proxy voting
process, a “yes/no” vote provides only limited insight into shareholder views. We have found,
through hundreds of meetings and discussions annually, that we can often accomplish more through dialogue than through the ballot.

Principle 4: Establish clear guidelines on when and how they will escalate their activities as a method of protecting and enhancing shareholder value.

It has not been VGI’s practice to make a public statement in advance of the AGM or an EGM, submitting resolutions at shareholders’ meetings, or requisition an EGM as it is, generally speaking, beyond each Fund’s/ account’s investment mandate as a passive, index funds/accounts to engage in such activities. That said, VGI actively engages with boards and management on corporate governance matters appearing on AGM and EGM ballots.

Matters discussed include executive compensation, governance structures and practices, and
pending transactions and contests for board seats.

Principle 5: Be willing to act collectively with other investors where appropriate.

The UK Companies and VGI act by reference to the investment strategy of the Funds/accounts and their own investment management policies. The decisions taken within that strategy and those
policies may be the same as those taken by other institutional investors in one or more respects, but VGI has not collaborated with other institutional investors and VIUK/VAM would not require it to do so. The UK Companies and VGI are willing to listen to other investors’ positions on particular matters and regularly analyse and vote on shareholder proposals. Occasionally, shareholder proposals against management’s recommendations may be supported when the UK Companies and VGI believe such votes are in the Funds’/accounts’ best interests. Although this approach is driven principally by the investment strategy and the investment management policies, it also avoids the risks of acting in concert with other institutional investors.

Principle 6: Have a clear policy on voting and disclosure of voting activity.

VGI will provide the UK Companies (as appropriate) with the Fund’s (or the accounts, where appropriate) proxy voting records each August for the 12 months ended 30 June. The UK Companies will review this information and may ask for further details where it considers that to be
appropriate. For the policy on voting, please see the explanations provided above.

Principle 7: Report periodically on their stewardship and voting activities.

VIUK will report to the Board of each Fund annually with a summary provided by VGI of the Fund’s stewardship and voting activities for the 12 months ended 30 June. The board of each of the UK Companies will receive a summary provided by VGI of stewardship and voting activities for each account as appropriate, for the 12 months ended 30 June.

Resources, Affiliations & Corporate Strategies

SRI Screening

The index provider (FTSE) has developed a customised SRI screening process designed to analyse companies issuing securities in the index. FTSE has contracted with several independent third-party researchers to analyse and rate each company in the standard benchmark, based on the customised SRI screening criteria. Their independent research is overseen by FTSE’s Responsible Investing Unit.

FTSE based the screening process on internationally accepted principles of corporate responsibility, as laid out in the United Nations Global Compact (UNGC) and the Oslo convention on controversial weapons manufacturers. The UNGC is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with universally accepted principles in the areas of human rights, labour, the environment and anti-corruption.

There are five major areas that FTSE uses to exclude securities:

  • Human Rights – Failure to adhere to the Universal Declaration of Human Rights
  • Labour Standards – Violations of the International Labor Organisation’s Declaration on Fundamental Principles and Rights at Work
  • Environment – Violations of the Rio Declaration on Environment and Development
  • Anti-corruption Principles – Failure to adhere to the United Nationals Convention Against Corruption
  • Military Weapons – Production of landmines, cluster bombs, chemical and biological weapons, nuclear weapons

A quarterly comprehensive review of all index constituents is conducted to determine whether they
will be excluded from the funds’ holdings.

While Vanguard has selected FTSE, after evaluating its screening process and criteria, we will not be directly involved in decisions to exclude or include specific companies from the fund on the basis of social responsibility.

This strict segregation of duties avoids conflict of interest and ensures that investment implications will not drive in- or exclusion in any way. Given the investment policy of providing a return close to market return, the fund aims to be sector neutral despite certain excluded securities.

FL F&C Responsible UK Equity Growth AL Ethically Balanced Life UK Equity 13/05/2007
FL Conscience Pn (xNM) Ethically Balanced Pension UK Equity 31/08/1987
RLP UK Ethical Pn Unclassified Pension UK Equity 01/11/1999
WAY Green Portfolio Way Ret Inc Environmentally Themed OEIC/Unit Trust Global Equity 01/02/2010
Virgin Climate Change Environmentally Themed OEIC/Unit Trust Europe Equity 18/01/2008
Royal London Sustainable Diversified Sustainability Themed OEIC/Unit Trust UK Mixed Asset 23/07/2009 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Sustainability themed This fund pays significant attention to sustainability issues either as its primary strategy or alongside other ethical criteria and approaches. This means that environmental and social challenges and opportunities are likely to influence stock selection decisions.
  • Limited/few ethical exclusions This fund avoids companies based on limited list of ethical exclusions (relative to other ethical funds)

Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Integrates ESG factors into all/most fund research This fund manager researches environmental, social and governance issues when deciding whether or not to invest in a company. This applies to all funds, not only those which are promoted as being 'ethical' or 'SRI themed'.

SRI / Ethical Policy

The selection process works on two levels as outlined below:

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

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

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

Resources, Affiliations & Corporate Strategies

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

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

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

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

Standard Life Vanguard SRI European Stock Pn S4 Negative Ethical Pension Europe Ex-UK Equity 05/05/2013 More Info (click to view)

SRI / Ethical Overview

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

This is a 'limited avoidance' fund. 

SRI Policies (Primary strategy in bold)

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

SRI Features

  • Norms focus This fund uses international standards, conventions and 'norms' to help direct where the fund can and cannot invest (e.g. the UN Global Compact).
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Limited/few ethical exclusions This fund avoids companies based on limited list of ethical exclusions (relative to other ethical funds)

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Zurich Sterling Kames Ethical Cautious Managed Ethically Balanced Life UK Mixed Asset 28/11/2016
AXA Wealth Jupiter Ecology Environmentally Themed Life Global Equity 23/07/2006
L&G Ethical Pn G1 Acc Sustainability Themed Pension UK Equity 05/04/2001
Aviva Alliance Trust Sustainable Future UK Growth Pn S2 Sustainability Themed Pension UK Equity 05/04/2001 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Aviva Kames Ethical Equity S4 Negative Ethical Life UK Equity 30/11/2009
CF Drygate Unclassified OEIC/Unit Trust Global Mixed Asset 03/03/2003
Scot Eq Socially Responsible Equity Pn B Sustainability Themed Pension UK Equity 31/08/1998
Epworth Affirmative Corporate Bond Faith Based OEIC/Unit Trust UK Fixed Interest 30/09/2009
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

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

FNW Kames Ethical Cautious Managed Negative Ethical Life UK Mixed Asset 05/06/2007
Scot Wid Ethical A Negative Ethical OEIC/Unit Trust UK Equity 11/09/1987
FL F&C Responsible Sterling Bond Pn Ethically Balanced Pension UK Fixed Interest 29/09/2010
OMW Kames Ethical Equity Negative Ethical Life UK Equity 31/01/2006
Aviva Alliance Trust Sustainable Future Corporate Bond Pn S2 Sustainability Themed Pension Europe >50% UK Fixed Interest 05/04/2001 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

-

Corporate Activity

-

Links

-

SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Threadneedle UK Social Bond Z Ret Acc Social Themed OEIC/Unit Trust UK Fixed Interest 04/12/2013 More Info (click to view)

SRI / Ethical Overview

The Threadneedle UK Social Bond Fund brings social investment into the mainstream with a unique market approach to social investing.  The Fund, launched in partnership with Big Issue Invest, aims to build a diversified portfolio of bonds issued by organisations to deliver a clear social outcome, primarily in the UK, as well as respectable financial returns in line with those generated by mainstream UK corporate bond funds.

By investing specifically in bonds that have a clear social outcome we are encouraging the issuance of new bonds thus helping provide a new source of capital to social sector organisations. 

 

SRI Policies (Primary strategy in bold)

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

SRI Features

  • 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.
  • 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.

Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Integrates ESG factors into all/most fund research This fund manager researches environmental, social and governance issues when deciding whether or not to invest in a company. This applies to all funds, not only those which are promoted as being 'ethical' or 'SRI themed'.

SRI / Ethical Policy

The core premise for the UK Social Bond Fund is that we believe that:

  • There is a significant investment opportunity for bonds to generate both attractive risk-adjusted financial returns and positive social outcomes.
  • Bonds with attractive yield, liquidity and social characteristics can deliver a diversified portfolio with daily liquidity.
  • Our partnership with Big Issue Invest validates and enhances the social outcome of the portfolio.

The investment policy is to maximise exposure to socially beneficial activities and development, based on assessments produced under the Fund’s Social Assessment Methodology. This methodology uses a social universe derived from the constituents of the Merrill Lynch £ Non-Gilt Index (c.1,050 bonds), together with a select number of non-benchmark bonds. These are weighted and mapped across into the eight key social outcome fields. This forms a social universe of around 350 - 400 securities.

In addition, these bonds also need to have either yield or liquidity or both as shown in the diagram. We refine the pool of potential investments based on the combined analysis of our investment grade credit team (yield and liquidity) and our governance and responsible investment (GRI) team (degree of social impact and intensity). A proportion of the Fund will be in highly liquid but lower yielding instruments, with the remaining proportion in less liquid instruments and charity bonds.

From this universe of potential investments, the portfolio manager uses an innovative Social Assessment Methodology, to evaluate the ‘social intensity’ of qualifying bonds, with each security ranked as high, medium or low social intensity. Investments are taken from this universe and analysed by GRI team. The portfolio manager then takes these social aspects into account when building a diversified and socially-balanced portfolio, which meets the required liquidity and financial returns requirements.

The portfolio manager has ultimate responsibility for portfolio construction. The portfolio will be well-diversified, with a minimum of 80% in domestically-focused bonds. Securities will predominantly be investment grade, with some unrated bonds and smaller issues especially when they have high social value. 

Particular attention is paid to managing liquidity, through holding more liquid social investments and cash, for the purposes of servicing the daily liquidity requirements of the portfolio.

The Fund’s Social Advisory Committee plays a key role in monitoring the construction and ongoing management of the portfolio and meets formally each quarter, as well as on an ad hoc basis when appropriate. Its remit includes the application of the Social Assessment Methodology across the portfolio; advising the portfolio manager on the social intensity of existing and potential investments; and challenging, where appropriate, the social analysis and social footprint of the strategy’s portfolio.

Social Assessment Methodology

Big Issue Invest, working with our GRI team, has developed a Social Assessment Methodology that positively screens all bonds with a focus on the degree to which they deliver positive social outcomes across eight areas: affordable housing; education; employment and training; health and social care; financial inclusion; community services; transport and communication infrastructure; utilities and the environment.  To assess the overall social intensity of qualifying bonds we use the methodology framework to guide investment decisions from a social perspective. Potential investments are reviewed to assess their overall ‘social intensity’ also noting the demographic characteristics of the issuer.

Additional note: 

As a company, we have a long standing history of charitable giving and have our own Foundation. The Foundation, a dedicated entity through which the company provides support for charitable activities, receives a proportion of the profits from this Fund.

 

Resources, Affiliations & Corporate Strategies

Our main focus is on proprietary internal research where we use the analysis of our highly qualified investment professionals from the Fixed Income team, the Governance and Responsible investment team along with the Equity team to generate an investment advantage. We also receive information from digital media sources (e.g Bloomberg, Reuters, Moody’s etc), major brokers, smaller regional brokerage houses and other sources such as conferences, trade journals and other media e.g. newspapers and magazines. 

Simon Bond is the lead portfolio manager and has ultimate responsibility for investment decisions in the Fund. He is a senior portfolio manager in our investment grade credit team which has been managing investment grade bonds since the firm’s formation in 1994. Simon has a long association with social outcome related investing, having started his career analysing Housing Association bonds in the late 1980’s. He is part of the wider fixed income group that comprises 86 experienced fund managers with an average of 18 years’ industry experience. 

Our Governance and Responsible Investment team, led by Iain Richards, has an established environmental, social and governance approach that forms a screening process which is integrated into the overall investment approach used to manage the strategy. The Fund employs both negative screens and positive screens. The team has an average of 13 years’ industry experience.

Big Issue Invest acts as Social Advisor to the strategy, via the Social Advisory Committee. The Committee has six members, comprising three representatives from Big Issue Invest, two representatives from Columbia Threadneedle and an independent member. The Committee’s role is to advise, review and challenge the strategy’s investments from a social performance perspective. The Committee meets quarterly and also holds an annual meeting to review the portfolio and strategy’s investment methodology from a strategic perspective.

Additional note:

We are also a founding signatory to the UN backed Principles for Responsible Investment, as well as signatory to the UK Stewardship Code, the Extractive Industries Transparency Initiative and the Carbon Disclosure project. We are an active member of a number of other responsible investment initiatives including (amongst others): the UK Sustainable Investment and Finance Association, the European Social investment Forum, the Global Governance Forum.

Scot Eq F&C Responsible UK Growth Pn Ethically Balanced Pension UK Equity 27/11/2013 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Scot Eq Socially Responsible Equity Sustainability Themed Life UK Equity 31/08/1998
Scot Eq Ethical Cautious Acc Negative Ethical Life Global Mixed Asset 31/08/1998
SWIS Evergreen Ethically Balanced Life Global Equity 01/03/1990
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

EdenTree Amity Sterling Bond A Ethically Balanced OEIC/Unit Trust UK Fixed Interest 04/03/2008 More Info (click to view)

SRI / Ethical Overview

The Fund aims to provide an attractive level of income. The Fund seeks to invest in a highly diversified portfolio of Government and good quality fixed interest securities issued by companies which make a positive contribution to society and the environment through sustainable and socially responsible practices. These Funds seek to avoid investment in certain areas such as companies which have a material involvement in alcohol, tobacco and weapon production, gambling and publication of violent or explicit materials.

SRI Policies (Primary strategy in bold)

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

SRI Features

  • RSMR Rated Fund rating agency 'Rayner Spencer Mills Research' have awarded this fund 'rated' status.
  • Positive selection bias The ethical focus of this fund is around the consideration of the positive/good or useful things companies do. The fund may also have negative avoidance criteria - but this may not be the main ethical strategy applied by the fund managers.
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Eurosif transparency This fund has met the standards of the EUROSIF transparency Code. This means that they are a leading fund in terms of openness and transparency, publishing - for example - extensive information about where they invest and how they deal with companies.
  • Specialist/boutique fund manager The fund management company that offers this fund specialises in SRI or sustainability focused investment options. They are likely to be a smaller but more focused business and unlikely to have significant investment in companies that are typically avoided by SRI/ethical funds.
  • Favours cleaner, greener companies This fund is likely to invest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts.
  • Favours companies with strong social policies This fund invests in line with positive strategies that relate to 'people' issues - such as human rights, labour standards and equal opportunities. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices.
  • 'Strictly' screened ethical fund The managers of this fund aim for it to be managed as having a high level of negative ethics led avoidance. They may refer to it as 'dark green' - meaning it excludes lots of companies, relative to other ethical options.

Corporate Activity

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

Links

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SRI / Ethical Policy

Ethical Approach

EIM is a pioneer of Socially Responsible Investment (SRI) and launched its first SRI investment fund in 1988. We utilise both negative and positive screening within the investment process. In respect of negative screening, we avoid companies whose activities derive in excess of 10% of their pre-tax profit or turnover from alcohol production, gambling, pornographic and violent material, tobacco production, strategic armaments, animal testing and intensive farming. 

We look for the positive aspects in potential investments to ensure we invest in companies that are making a positive contribution to society and the environment. These may cover good business and corporate governance practices and community relations. We also look for companies promoting good standards of education, environmental management and healthcare. We look favourably upon companies which promote human rights, good labour relations and urban regeneration. As well as our own in-house research (including special thematic reports) we use a range of sources, including independent data from Risk Metrics in respect of Environmental, Social and Governance (ESG) issues.

Ecclesiastical employs both negative and positive screening to its stock selection process and engages with companies before, during and after investing. This process is integrated into our overall investment management process and we use the following ‘screens’ when considering the suitability of an investment.

Positive screening

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

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

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

Negative screening

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

Amity Panel Review

The Amity Panel meet with the fund management and research team 3 or 4 times each year to review the Amity Fund portfolios, the recent investment decisions and to discuss the latest Socially Responsible research and trends. The purpose of the Amity Socially Responsible Investment Advisory Panel is to:-

  • Help to ensure that the Ecclesiastical Amity Range of Funds meet the stated aims and objectives.
  • Provide advice in the formulation of policy in the light of changing social and environmental issues.

The Amity Panel will provide advice to the SRI team in a number of ways

  • Advising on emerging issues or topics relevant to SRI criteria.
  • Provide advice and guidance on individual companies or sectors.
  • Provide advice and guidance on engagement work.

The independent panel is made up of a number of industry experts, including:

  • The Right Reverend Dr Nigel Peyton – The Bishop of Brechin
  • William Oulton – Global Head of Responsible Investments, First State Investments
  • George Prescott – ex Ecclesiastical Deputy CEO and CFO, former ABI board member
  • Helen Crosby – Sustainability Expert.
  • Julie McDowell – Independent Consultant

Resources, Affiliations & Corporate Strategies

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

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

ReAssure HL Global Socially Responsible Pn 1 Unclassified Pension Global Equity 22/08/2004
Standard Life Inv UK Ethical Trust Ret Negative Ethical OEIC/Unit Trust UK Equity 16/02/1998 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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

Corporate Activity

  • ESG/SRI engagement Fund Manager actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. Focus will typically be on major holdings and highest risks/opportunities. This may apply to a single fund or a group of funds or other assets.
  • Integrates ESG factors into all/most fund research This fund manager researches environmental, social and governance issues when deciding whether or not to invest in a company. This applies to all funds, not only those which are promoted as being 'ethical' or 'SRI themed'.

SRI / Ethical Policy

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

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

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

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

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

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

Resources, Affiliations & Corporate Strategies

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

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

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

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

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

Zurich Henderson Global Care Growth G4 AL Sustainability Themed Life Global Equity 29/01/2001
L&G Ethical UK Equity Index PMC PN G17 Sustainability Themed Pension UK Equity 12/05/2004
Metlife Aegon Ethical Equity Pn Negative Ethical Pension UK Equity 04/02/2009
FL Kames Ethical Cautious Managed EP Negative Ethical Pension UK Mixed Asset 05/05/2008 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

Zurich Kames Ethical Corporate Bond ZP Negative Ethical Pension Europe >50% UK Fixed Interest 01/07/2007 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

Aviva Alliance Trust Sustainable Future Managed S1 Sustainability Themed Life Global Mixed Asset 24/06/2001
Foresight Solar & Infrastructure VCT PLC C Ord 1p Environmentally Themed Investment Trust Global Equity 04/04/2013
Aviva Royal London Select Portfolio (40-85% Shares) Sustainability Themed Life Europe >50% UK Mixed Asset 05/04/2006
OMW Premier Ethical A Ethically Balanced Life UK Equity 08/06/2006
AXA Wealth Kames Ethical Equity Pn S4 Negative Ethical Pension UK Equity 30/12/2009 More Info (click to view)

SRI / Ethical Overview

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

SRI Policies (Primary strategy in bold)

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

SRI Features

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Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies

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

SRI / Ethical Overview

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

A 'limited avoidance' fund. 

SRI Policies (Primary strategy in bold)

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

SRI Features

  • Norms focus This fund uses international standards, conventions and 'norms' to help direct where the fund can and cannot invest (e.g. the UN Global Compact).
  • Negative selection bias The ethical strategy of this fund relates primarily to avoidance criteria. In practice this means that positive company behaviours will not normally be allowed to override negative activities.
  • Limited/few ethical exclusions This fund avoids companies based on limited list of ethical exclusions (relative to other ethical funds)

Corporate Activity

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Links

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SRI / Ethical Policy

Resources, Affiliations & Corporate Strategies