Strategy information – Responsible Ownership

Investment managers who aim to encourage more responsible business practices through stewardship strategies – which may include dialogue, voting and withholding capital.

Brief description of strategy:

Responsible Ownership is typically a ‘corporate level’ activity, meaning it is generally applied across an asset management company’s entire assets. Responsible ownership is often deeply embedded in fund strategies, complementing both screened and thematic strategies and may be integral to the management of a fund.

Fund managers with Responsible Ownership strategies work with the companies or other entities that they invest in (or could invest in) to encourage better environmental, social and governance practices – when change is believed to be beneficial.

Activity of this kind (particularly voting) has increased significantly in recent years, having been increasingly high profile since the introduction of the FRC Stewardship Code  (adopted by the FCA for all UK fund managers in December 2010).

Fund EcoMarket company wide ‘Responsible Ownership’ information can be found within both fund filter options and text fields.

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