Fund Filters
Sustainability
Sustainability policy
Limits exposure to carbon intensive industries
Resource efficiency policy or theme
Sustainability theme or focus
Waste management policy or theme
Favours cleaner, greener companies
Sustainability focus
Encourage more sustainable practices through stewardship
Circular economy theme
Nature & Biodiversity
Water stewardship policy
Climate Change & Energy
Nuclear exclusion policy
Coal, oil & / or gas majors excluded
Invests in clean energy / renewables
Fracking and tar sands excluded
Clean / renewable energy theme or focus
Arctic drilling exclusion
Fossil fuel reserves exclusion
Energy efficiency theme
Require net zero action plan from all/most companies
Fossil fuel exploration exclusion - direct involvement
Targeted Positive Investments
EU Sustainable Finance Taxonomy holdings 5-25% of fund assets
EU Sustainable Finance Taxonomy holdings >25% of fund assets
Invests >25% of fund in environmental/social solutions companies
Invests >50% of fund in environmental/social solutions companies
Human Rights
Human rights policy
Child labour exclusion
Oppressive regimes (not free or democratic) exclusion policy
Social / Employment
Favours companies with strong social policies
Mining exclusion
Meeting Peoples' Basic Needs
Water / sanitation policy or theme
Demographic / ageing population theme
Responsible food production or agriculture theme
Ethical Values Led Exclusions
Ethical policies
Animal testing exclusion policy
Tobacco and related product manufacturers excluded
Armaments manufacturers avoided
Alcohol production excluded
Gambling avoidance policy
Pornography avoidance policy
Gilts / government bonds - exclude all
Gilts / government bonds - exclude some
Banking & Financials
Exclude banks with significant fossil fuel investments
Governance & Management
Avoids companies with poor governance
Encourage higher ESG standards through stewardship activity
Fund Governance
ESG integration strategy
Employ external (fund) oversight or advisory committee
External (fund) committee has veto powers
Asset Size & Metrics
Over 50% large cap companies
Invests mostly in large cap companies
How The Fund Works
Strictly screened ethical fund
Positive selection bias
Negative selection bias
Combines norms based exclusions with other SRI criteria
Combines ESG strategy with other SRI criteria
Focus on ESG risk mitigation
SRI / ESG / Ethical policies explained on website
Impact Methodologies
Invests in environmental solutions companies
Invests in sustainability / ESG disruptors
Aim to deliver positive impacts through engagement
Over 50% in assets providing environmental or social ‘solutions’
Labels & Accreditations
RSMR rated (OEIC funds only)
Intended Clients & Product Options
Intended for investors interested in sustainability
Available via an ISA (OEIC only)
Portfolio SRI / ESG options available (DFMs)
Multiple SRI / ESG portfolio options available (DFMs)
Bespoke SRI / ESG portfolios available (DFMs)
Fund management company information
About The Business
ESG / SRI engagement (AFM company wide)
Responsible ownership / stewardship policy or strategy (AFM company wide)
Responsible ownership policy for non SRI funds (AFM company wide)
Responsible ownership / ESG a key differentiator (AFM company wide)
Vote all* shares at AGMs / EGMs (AFM company wide)
Integrates ESG factors into all / most fund research
In-house diversity improvement programme (AFM company wide)
Senior management KPIs include environmental goals (AFM company wide)
Vulnerable client policy on website (AFM company wide)
Offer structured intermediary training on sustainable investment
Offer unstructured intermediary sustainable investment training
Resources
In-house responsible ownership / voting expertise
Employ specialist ESG / SRI / sustainability researchers
Use specialist ESG / SRI / sustainability research companies
Collaborations & Affiliations
PRI signatory
UKSIF member
Climate Action 100+ or IIGCC member
Fund EcoMarket partner
Investment Association (IA) member
Accreditations
UK Stewardship Code signatory (AFM company wide)
PRI A+ rated (AFM company wide)
Engagement Approach
Engaging on climate change issues
Engaging with fossil fuel companies on climate change
Engaging on biodiversity / nature issues
Engaging on human rights issues
Engaging on diversity, equality and / or inclusion issues
Engaging on responsible supply chain issues
Company Wide Exclusions
Controversial weapons avoidance policy (AFM company wide)
Climate & Net Zero Transition
Encourage carbon / greenhouse gas reduction (AFM company wide)
Transparency
Publish full voting record (AFM company wide)
Publish responsible ownership / stewardship report (AFM company wide)
Full SRI policy information on company website
Full SRI policy information available on request
Sustainable, Responsible &/or ESG Policy:
We employ an independent specialist firm (Ethical Screening) to oversee the screening of potential investments against the ethical criteria. The fund strategy complies with the ethical policy - it does not invest in companies directly involved in tobacco, alcohol, gambling, armaments, pornography, nuclear power generation, banks, factory farming or animal testing, and no investment is made without it being approved by Ethical Screening. This ensures the exclusions are applied fairly and consistently.
The application of these restrictions is coupled with positive sustainable investment selection. The identification of companies around the world that provide solutions to the economic and environmental challenges of a cleaner and more efficient economy – delivering ‘more with less’ for a fast-growing population with a finite supply of resources, and within a carbon constrained environment. We identify conviction ideas within our four sustainable investment themes: Clean Energy, Food, Resource and Water. To select our holdings, we use a combination of quantitative analysis, in-house fundamental research, brokers’ research notes and management meetings.
We recognize that well managed companies are better placed to generate long term returns to clients. As such, we aim to identify, understand, and monitor the key environmental, social and governance (ESG) issues surrounding the companies, sectors, and regions in which we invest.
Process
The funds’ ethical screening is carried out by an independent third-party research specialist, Ethical Screening. The focus is on mid and large-cap equities, and we do not invest in blue-sky type/start-up companies. The strategy tends to focus on established business models and cash generative companies. Security selection is focused across four investment themes: Clean Energy, Food, Resource Efficiency and Water. The investment process is centralized, and final investment oversight is provided by the Chief Investment Strategist. The fund managers leverage from the in-house investment expertise of investment committees and Research Analysts.
Please note:
We have recently carried out a fresh review of our assessment criteria for our fund holdings.
Our Human Rights exclusion looks to avoid companies that are based in countries with questionable human rights records. Whilst child labour is not specifically mentioned, it forms part of the wider Human Rights exclusion, and as such it will be flagged during the ESG screening process for any potential holdings.
Further information can be found in our Annual Sustainability Report (link below).
sustainable-investment-annual-report-march-2022.pdf (quiltercheviot.com)
