Kames Global Sustainable Equity Fund (OEIC/Unit Trust)
SRI / Ethical Overview
We launched our first ethical equity fund in 1989 and since then have broadened our ethical capabilities to include ethical corporate bond and ethical cautious managed funds. Furthermore, we launched a Global Sustainable Fund in April 2016 to increase the options available for our clients. Today we are distinctive among fund providers in offering such a broad suite of ethical products. Below we’ve denoted some of the key characteristics of our ethical proposition:
- We are committed to ethical investing
- Sustainable companies make good investment
- Our approach to sustainability is disciplined, clear and transparent.
- Our ethical funds are rated by Morningstar OBSR
A 2015 survey named Kames Capital as one of only four ethical investment providers to be used by over 70% of financial advisers which are members of the Ethical Investment Association.
SRI / themed / ethical assets under management – overview
- Fund Size (GBP): £50.88 million as at 31/05/2017
- Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds under management: £1,748.84 million as at 31/05/2017
- Total assets under management: £45,335 million as at 31/03/2017
SRI Policies (Primary strategy in bold)
- Ethical policies Find funds with 'traditional' ethical investment policies. These typically focus on avoiding companies that are involved in the armaments industry, tobacco, gambling and/or pornography. Options will include funds where their core strategy or style may be to focus other issues - like sustainability or the environment, not just 'ethical funds'. Strategies vary significantly. Check fund literature for details.
- Sustainability policy Find fund options that consider issues relating to the sustainability agenda (e.g. resource management, environmental impact, climate change and/or social issues such as equal opportunities, human rights and adherence to recognised codes). This will include funds from all of the different SRI Styles. See fund information for explanations of the different strategies.
- Fracking and tar sands excluded Find fund options that avoid companies involved in fracking and tar sands - which are widely regarded as more controversial methods of oil and gas extraction.
- Human rights Find funds that consider human rights practices when approving companies for investment. Such funds will require decent standards of human rights to be demonstrated - which typically means adherence to international norms as a minimum standard.
- PRI signatory Find fund management companies that have signed up to the UN backed 'Principles of Responsible Investment' initiative.
SRI / Ethical Policy
Fossil fuel areas of exclusion: coal and tar sands.
Resources, Affiliations & Corporate Strategies
Our ESG Research team is responsible for the bottom up sustainability analysis of all of the companies that the fund invests in. The investment ideas are identified by the investment team and the sustainability analysis is undertaken by the ESG Research team, who make the final decision on whether the company is ranked as a Leader, Improver or Laggard. The fund cannot invest in Laggards. Whilst the ESG Research team has the final say, there is a clear and open dialogue with the fund managers/analysts regarding the sustainability rating and both parties leverage their knowledge together to fully understand the nuance and ultimately get the right outcome. Sustainability KPI’s are always identified in order to track sustainability improvement and engage with the company. These KPI’s are then tracked by the ESG Research team, who can upgrade and downgrade stocks appropriately.
It should be noted that the ESG Research team is one of the most experienced in the UK market and that co-manager Craig Bonthron has been managing global environmental and sustainable equity mandates for over 9 years.