Style Name: Responsible Ownership

Investment managers who aim to encourage more responsible business practices through stewardship strategies – primarily dialogue and voting.

Brief description of Style:

Responsible Ownership is a ‘corporate level’ activity, but is also often deeply embedded in fund strategies, complementing both screened and thematic strategies.

Fund managers with Responsible Ownership strategies work with the companies or other assets they invest in to encourage better environmental, social and governance practices – when change is believed to be in everyone’s best interest.

Activity of this kind (particularly voting) has increased significantly in recent years – following the introduction of the FRC Stewardship Code  (adopted by the FCA for all UK fund managers in December 2010).

The Fund EcoMarket ‘Responsible Ownership’ entries list fund manages that carry out significant ‘engagement’, ‘stewardship’ or ‘active share ownership’ activity across all (or almost all) of their funds or portfolios.

This activity may or may not be actively promoted to investors, but further information can normally be found on fund manager websites.

Associated terms

Stewardship, responsibilities associated with asset ownership, rights and responsibilities