Redwheel Responsible Global Income Fund
SRI Style:
Unclassified
SDR Labelling:
Not eligible to use label (out of scope)
Product:
SICAV/Overseas
Fund Region:
Global
Fund Asset Type:
Equity
Launch Date:
02/03/2023
Last Amended:
Jul 2025
Dialshifter (
):
Fund/Portfolio Size:
£27.83m
(as at: 30/11/2025)
Total Screened Themed SRI Assets:
£523.20m
(as at: 30/04/2025)
Total Responsible Ownership Assets:
£13243.30m
(as at: 30/04/2025)
Total Assets Under Management:
£13243.30m
(as at: 30/04/2025)
ISIN:
LU2580227697, LU2580227424, LU2580226376, LU2580226020
Contact Us:
Objectives:
To provide a combination of income and long-term capital growth by investing primarily in a portfolio of global companies.
The fund promotes environmental and social characteristics as defined by Article 8 of SFDR and therefore does not have a Sustainable Investment objective.
Sustainable, Responsible
&/or ESG Overview:
The Redwheel Responsible Global Income Fund follows a high conviction, global equity strategy centered on harnessing and enhancing the most statistically significant source of long-term returns in responsible companies – the compounding of dividends through time. The strategy applies an objective yield discipline at the stock level, ensuring that every stock always compounds at a higher yield than the market.
Sustainability factors are viewed as primarily a risk to a company’s cash flows and long-term durability. The team aim to explicitly capture all potential sustainability-related financial costs to establish whether the company can suffer the transition through its sustainability challenges.
Hard exclusions apply with respect to harmful activities and business practices that cannot be tolerated over any time frame. The strategy promotes a positive tilt towards companies demonstrating effective management of sustainability issues. The carbon intensity of companies is also assessed through imposing a carbon tax per tonne of carbon emitted.
Primary fund last amended:
Jul 2025
Information directly from fund manager.
Fund Filters
Sustainability - General
Has policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See individual entry information.
Aim to encourage higher sustainability standards through responsible ownership / stewardship / engagement / voting activity
Use the UN Global Compact to inform or help direct where they can or cannot invest. Will typically not invest in companies with significant breaches (low standards) - strategies vary. (The UNGC covers a wide range of issues - search 'UNGC'). See https://unglobalcompact.org/
Environmental - General
Options that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change). Strategies vary.
Aims to invest in companies with strong or market leading environmental policies and practices. Strategies vary. See individual entry information for more detail.
Climate Change & Energy
Has policies (documented strategies that explain their position) on climate change related issues such as greenhouse gas/carbon emissions, net zero, transitioning to lower carbon. Strategies vary.
Avoid investment in major coal, oil and/or gas (extraction) companies. Strategies vary.
Avoid investing in companies / assets with coal, oil and gas reserves. See individual entry information for further details.
Ethical Values Led Exclusions
Has policies that set out their position on ethical or 'personal values' based issues. Strategies vary.
Companies are excluded if they are involved in any aspect of the production chain for tobacco products, including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Companies are excluded if they make more than 5% of their revenue from the manufacture, sale or distribution of tobacco products including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Avoids companies that manufacture weapons intended specifically for military use. Strategies vary - may or may not include non-strategic military products.
Has a written civilian firearms exclusion policy - meaning that they will not invest in companies that make (or perhaps also sell) handguns made for non-military users.
Avoids companies that produce alcohol. Strategies vary; some may allow a small proportion of revenue to come from this area.
Avoids companies with significant involvement in the gambling industry. Some may allow a small proportion of revenues to come from this area.
Avoids companies that derive significant income from pornography and related areas. Strategies vary.
Governance & Management
Has policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary.
Avoids investing in companies with poor governance practices.(e.g. board structure, management practices etc.) Views may however vary on what counts as 'poor' practices - and funds may not immediately divest as they may prefer to work to encourage higher standards.
Exclude companies that are subject to United Nations sanctions. See eg https://main.un.org/securitycouncil/en/content/un-sc-consolidated-list
Product / Service Governance
Find fund / asset managers that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature.
Asset Size
Invests more than half of their money into what are commonly regarded as 'large companies'. This will typically mean that the market capitalisation (or value) of the companies they hold is in excess of £5 to £10 billion.
Invests mainly in larger companies / assets. (e.g. over circa £5-£10bn)
How The Fund/Portfolio Works
Has principle 'ethical approach' to avoid companies by using negative screening criteria. Strategies vary.
Has principle approach to apply positive or negative ethical, social and / or environmental screens. Strictly screened investments are likely to exclude more companies than other related options. Strategies vary.
Invest more heavily in assets which have higher ESG ratings/standards or scores and less heavily in companies with lower ESG ratings. Where this is central to the strategy you should expect assets in most sectors. Strategies vary.
Investment selection process uses internationally agreed 'norms' (e.g. United Nations Global Compact - UNGC - or the UN Sustainable Development Goals - SDGs) alongside additional SRI criteria such as positive or negative stock selection policies and/or stewardship strategies.
Invests in assets which have an ESG strategy (which is typically focused on avoiding companies that pose environmental, social or governance related risks) together with additional criteria such as positive and/or negative screens, themes and stewardship strategies.
Uses internationally agreed standards, conventions and 'norms' to help direct investment decisions (e.g. the UN Global Compact, UN Sustainable Development Goals).
Focuses on the careful management of environmental, social and governance (ESG) related risks - typically by avoiding or being underweight in companies seen as posing major risks in these areas (i.e. not necessarily by using themes, exclusions etc).
Publish explanations of their ethical, social and/or environmental policies online (i.e. investment decision making strategies/ buy/sell &/or asset management strategies).
Has different risk options for the same investment strategy
Does not use stock lending for performance or risk purposes.
Intended Clients & Product Options
Designed to meet the needs of individual investors with an interest in sustainability issues.
Labels & Accreditations
Find options classified under Article 8 of the EU’s SFDR (Sustainable Finance Disclosure Requirements). Article 8 of the SFDR is a set of requirements that apply to financial products that 'promote' environmental or social characteristics together with high governance. These rules do not currently apply to UK products so many managers may leave this field blank.
Fund Management Company Information
About The Business
Find fund / asset management companies that are smaller or specialise in particular areas - notably, ideally ESG related. Strategies vary.
Finds fund / asset management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.
Find fund / asset management companies that actively encourage higher 'environmental, social and governance' and / or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
Find fund / asset managers that vote all* the shares they own at Annual General Meetings and Extraordinary General Meetings. A commitment to voting shares is a key indicator of 'responsible share ownership' demonstrating their support for or disagreement with management policy. (*situations can legitimately, occasionally occur where voting proves impossible, but in principle all shares should be voted.)
Find fund / asset managers that consider responsible ownership and ESG to be a key differentiator for their business.
Find options run by managers that apply Responsible ownership or 'Stewardship' policies to all or most of their investment assets. This means active involvement (e.g. voting, dialogue) with the companies across all or most funds, products and services.
Find fund / asset management companies that consider environmental, social and governance (ESG) issues when deciding whether or not to invest in a company for all / almost all of their funds and other assets. This is increasingly seen as part of sound risk management.
Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.
This fund / asset management company invests in companies which have recently listed on a stock exchange (which is important as it can help grow new businesses).
Fund / asset management company has investments in bonds designed to meet sustainability requirements - however these assets may not be 'ringfenced' for this purpose. See website for details.
Collaborations & Affiliations
Find fund / asset management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
Fund management entity is a member of the Investment Association https://www.theia.org/
Resources
Find fund / asset management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.
Find a fund / asset management company that directly employs specialist ESG/SRI/sustainability researchers or analysts. This allows asset managers to discuss environmental, social and governance risks and opportunities directly with companies.
Find fund / asset management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors.
Finds organisations / fund managers that have one or more ESG/sustainability experts on all investment teams or 'desks' (all asset types)
Accreditations
Find fund / asset managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where managers are encouraged to behave like responsible, typically longer term 'company owners'.
Engagement Approach
Find fund / asset management companies that regularly initiate or run industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
Fund / asset manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
Fund / asset manager has a stewardship /responsible ownership strategy that involves working with fossil fuel companies on climate change related issues. See fund manager website for details.
Fund / asset manager has a stewardship / responsible ownership policy that means they are working to encourage more responsible mining practices - where environmental and social issues are properly dealt with by the companies they invest in.
Fund / asset manager has a responsible ownership / stewardship strategy which means they are working to encourage the shift to more sustainable business practices in ways that respect and are sensitive to social issues and the impact change has on people effected by the changes that are taking place. https://www.transitionpathwayinitiative.org/ https://transitiontaskforce.net/
Fund / asset manager has responsible ownership / stewardship strategy in place which aims to address human rights issues in investee companies (and potentially their suppliers) with the aim of raising standards
Fund / asset managers have stewardship strategies in place that focus on improving governance standards across investee assets
Has a stewardship / responsible ownership strategy that encourages responsible supply chain - ie the managers will discuss environmental, social and governance issues with investee companies with the aim of raising standards
Escalation policies describe how a manager will proceed if stewardship / engagement activity is not successful in the short term.
Company Wide Exclusions
Find fund / asset management companies (not funds) that avoid investment in 'controversial weapons' across all of their funds and other investment vehicles.
Climate & Net Zero Transition
Fund / asset management organisations that have pledged to reduce their greenhouse gas emissions to ‘net zero’. Strategies vary - this area is changing rapidly.
Find fund / asset management companies that are working with the companies they invest in to encourage reductions in carbon dioxide and other greenhouse gas emissions.
This fund / asset management company plans to achieve net zero greenhouse gas (CO2e) emissions with the help of a scheme that will lock away an amount of carbon that is equivalent to the company’s own emissions – so that the end result is ‘net zero’. Calculations and scope vary.
Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to 'zero'.
Transparency
Find fund / asset management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.
Find fund / asset management companies that publish information about their sustainable and responsible investment strategies on their company website.
Fund / asset management companies that publish a full record of how they vote their shares at AGMs (annual general meetings) and EGMs (extraordinary general meetings). Voting strategies have an important role to play encouraging higher environmental, social and governance standards.
Sustainable, Responsible &/or ESG Policy:
The manager views the concept of sustainability as applicable to the assessment of environmental, social and governance (“ESG”) aspects of companies that issue equities. In assessing the ESG aspects of issuers, the manager considers this review as integrated into broader fundamental analysis. The manager integrates ESG analysis into investment decision making as it is believed that consideration of the broad array of risks that a company faces, or may face in the future, including environmental, social and governance factors, helps us to make better investment decisions. This analysis is supported by third party research and data from external providers such as Sustainalytics, Bloomberg, and ISS. The manager also believes that ESG analysis can help to identify potential sources of return from companies that are improving their ESG profiles or engaging with investors.
Analysis of the key social and environmental risks, the company’s track record on managing these risks and an assessment of any mitigating factors is incorporated into the analysis of a potential investment. The strategy is actively managed to maintain a quality bias when considering ESG profile, measured by ESG risk ratings, as provided by Sustainalytics or an equivalent third-party sustainability provider. The strategy commits to maintaining the weighted average ESG risk rating for the strategy below (i.e. superior to) the reference index. The strategy maintains a greenhouse gas intensity of investee companies that is 20% lower than the reference benchmark.
Exclusions
As part of the strategy, a series of hard exclusions is applied with respect to some product and business practices that encompasses harmful activities that are not tolerated over any time frame. Hard exclusions apply in respect of issuers that:
- Engage in the production of tobacco
- Generate 10% or more of revenue from the distribution of tobacco
- Generates 5% or more of revenue from the production of alcohol
- Generate 10% or more of revenue from the distribution of alcohol
- Engage in the production of adult entertainment
- Generate 10% or more of revenue from the distribution of adult entertainment
- Generate 10% or more of revenue from gambling
- Engage in the production or distribution of controversial weapons
- Are non-compliant with the UN Global Compact
- Generate 10% or more of revenue from military contracting
- Generate 10% or more of revenue from thermal coal extraction
- Generate 10% or more of revenue from thermal coal power generation
The strategy places additional focus on investing in issuers that are compatible with the long-term climate change objectives of the Paris Agreement. The Investment Manager considers compatibility in relation to analysis of business models positioned to protect their profitability and cash flows under the assumption of an introduction of carbon pricing. Carbon pricing is a method of assigning a price of the externalities of carbon emissions. The manager applies a consistent price per tonne of carbon emitted to all businesses analysed as a means to help ensure that the business demonstrates sound environmental characteristics along with the financial ability to suffer carbon costs and the cost of transition.
Process:
As a starting point for security selection, the strategy avoids investments in companies that engage in product and business practices that encompasses harmful activities that are not tolerated over any time frame. Redwheel uses an expert third-party sustainability data provider to generate a list of issuers that are considered to be in breach of the exclusion criteria at a given point in time.
Sustainability factors are viewed as primarily a risk to a company’s cash flows and the durability of their long-term returns. Hence, the Team aim to explicitly capture all potential ESG-related financial costs during their initial analysis. The Team look for companies that have the ability to suffer the transition through its ESG challenges. As part of the consideration of an issuer's sustainability factors, specific consideration is paid to social and employee matters, with focus on UN Global Compact principles.
Focus is also placed on greenhouse gas emissions. The Team do not apply thresholds at the issuer level but considers management's awareness, policy and progress of this issue as well as the presence of carbon emission reduction initiatives. The strategy places additional focus on investing in issuers that are compatible with the long-term climate change objectives of the Paris Agreement. The Team considers compatibility in relation to analysis of business models positioned to protect their profitability and cash flows under the assumption of an introduction of carbon pricing. Carbon pricing is a method of assigning a price of the externalities of carbon emissions. The Team applies a consistent price per tonne of carbon emitted to all businesses analysed as a means to help ensure that the business demonstrates sound environmental characteristics along with the financial ability to suffer carbon costs and the cost of transition.
On behalf of its investors, the manager undertakes stewardship activities with investee companies to understand, monitor and advise on relevant sustainability issues. Stewardship activities include meetings with company management and proxy voting.
Redwheel processes and uses sustainability data from a number of external providers, particularly to support research, security selection, portfolio management and stewardship. Data providers include Sustainalytics, ISS and SDI AOP. All third-party sustainability data used within investment processes is scrutinised by the manager. The manager may disagree with or not have confidence in the data if it considers the data to be out of date or otherwise factually incorrect. In this instance, the manager may seek the advice of the central Sustainability Team. The Sustainability Team may in exceptional circumstances approve an overrule of the data received and will also, as appropriate, raise perceived errors with the third-party data provider.
Resources, Affiliations & Corporate Strategies:
Our investment teams and wider business are supported and challenged by specialists split across three sustainability verticals:
The Strategy, Governance and Policy team is led by Olivia Seddon-Daines and is responsible for policy design, sustainability strategy setting, building and operating governance processes, communication and advisory with investment teams, and communication with a range of internal and external key stakeholders. Olivia is supported by Djolan Captieux and Emma Kurtz.
The Stewardship and Regulatory Change team is led by Chris Anker who supports investment teams with engagement and proxy voting and, working closely with our Legal and Compliance teams, monitors and evaluates global regulatory initiatives relating to responsible investment
The Thematic Sustainability Research team, Greenwheel, is led by Stephanie Kelly. This team’s remit is to produce thematic sustainability research commissioned by Redwheel investment teams and support Redwheel’s responsible, transition and sustainable investment strategies at each stage of the product life cycle. Stephanie is supported by a team of specialists with experience from within and outside the asset management industry. Her team includes Jessica Wan who leads social research and Paul Drummond who leads climate and environment research both of whom joined in 2023.
Olivia, Chris and Stephanie report directly into our Head of Investments Arthur Grigoryants who is executive level sponsor for our firm's activities relating to responsible investment. His regular interactions with investment team heads ensures frequent reflection on evolving client interests.
All investment teams are encouraged to actively engage and participate in the work of Redwheel’s Sustainability Forum, whose principal aim is to support debate and discussion on ESG integration approaches. The forum meets on a monthly basis and provides a key mechanism for our business and our investment teams to:
- develop and improve - through collaboration - organisation level and Team level policies and practices with respect to sustainability.
- share knowledge and understanding of current best practices in respect of company ESG risk management, ESG integration, engagement activities, voting, dealing with client expectations, reporting etc.
- monitor and agree current priorities for engagement and collaboration activities.
- develop and implement education programs for the investment Teams. This could include updates on regulatory frameworks, insights into client expectations, thematic topics (climate, biodiversity etc.)
- leverage Redwheel level membership in organisations/initiatives
Governance and oversight is provided via the Redwheel Sustainability Committee. Standing committee members in addition to Heads of sustainability functions include CEO Tord Stallvik and Head of Investments Arthur Grigoryants, who are both members of Redwheel’s Executive Committee. The Sustainability Committee meets formally on a quarterly basis to review sustainability issues both in a corporate sense and in terms of the delivery of responsible investment in practice by our investment
Redwheel are a signatory or a supporter of the following organisations and initiatives:
- UN Principles for Responsible Investment (2020)
- Investor Forum (2020) - one of our portfolio managers is a member of the board
- ClimateAction100+ (2021)
- NatureAction (2023)
- Institutional Investors Group on Climate Change (IIGCC, 2021)
- Investment Association – Sustainability & Responsible Investment Committee (2021)
- Investment Association – Stewardship Committee (2024)
- Corporate Governance Forum (2021)
- Pensions and Lifetime Savings Association - Stewardship Advisory Group (2021)
- CDP (2021)
- UN Global Compact (2022)
- UK Stewardship Code (2022)
- Access to Medicines Index (2023)
SDR Labelling:
Not eligible to use label (out of scope)
| Fund Name | SRI Style | SDR Labelling | Product | Region | Asset Type | Launch Date | Last Amended |
|
|---|---|---|---|---|---|---|---|---|
Redwheel Responsible Global Income Fund |
Unclassified | Not eligible to use label (out of scope) | SICAV/Overseas | Global | Equity | 02/03/2023 | Jul 2025 | |
ObjectivesTo provide a combination of income and long-term capital growth by investing primarily in a portfolio of global companies. The fund promotes environmental and social characteristics as defined by Article 8 of SFDR and therefore does not have a Sustainable Investment objective. |
Fund/Portfolio Size: £27.83m (as at: 30/11/2025) Total Screened Themed SRI Assets: £523.20m (as at: 30/04/2025) Total Responsible Ownership Assets: £13243.30m (as at: 30/04/2025) Total Assets Under Management: £13243.30m (as at: 30/04/2025) ISIN: LU2580227697, LU2580227424, LU2580226376, LU2580226020 Contact Us: investorsupport@redwheel.com |
|||||||
Sustainable, Responsible &/or ESG OverviewThe Redwheel Responsible Global Income Fund follows a high conviction, global equity strategy centered on harnessing and enhancing the most statistically significant source of long-term returns in responsible companies – the compounding of dividends through time. The strategy applies an objective yield discipline at the stock level, ensuring that every stock always compounds at a higher yield than the market. Sustainability factors are viewed as primarily a risk to a company’s cash flows and long-term durability. The team aim to explicitly capture all potential sustainability-related financial costs to establish whether the company can suffer the transition through its sustainability challenges. Hard exclusions apply with respect to harmful activities and business practices that cannot be tolerated over any time frame. The strategy promotes a positive tilt towards companies demonstrating effective management of sustainability issues. The carbon intensity of companies is also assessed through imposing a carbon tax per tonne of carbon emitted. |
||||||||
|
Primary fund last amended: Jul 2025 |
||||||||
|
Information received directly from Fund Manager |
||||||||
|
Please select what you would like to read:
Fund FiltersSustainability - General
Sustainability policy
Has policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See individual entry information.
Encourage more sustainable practices through stewardship
Aim to encourage higher sustainability standards through responsible ownership / stewardship / engagement / voting activity
UN Global Compact linked exclusion policy
Use the UN Global Compact to inform or help direct where they can or cannot invest. Will typically not invest in companies with significant breaches (low standards) - strategies vary. (The UNGC covers a wide range of issues - search 'UNGC'). See https://unglobalcompact.org/ Environmental - General
Limits exposure to carbon intensive industries
Options that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change). Strategies vary.
Favours cleaner, greener companies
Aims to invest in companies with strong or market leading environmental policies and practices. Strategies vary. See individual entry information for more detail. Climate Change & Energy
Climate change / greenhouse gas emissions policy
Has policies (documented strategies that explain their position) on climate change related issues such as greenhouse gas/carbon emissions, net zero, transitioning to lower carbon. Strategies vary.
Coal, oil & / or gas majors excluded
Avoid investment in major coal, oil and/or gas (extraction) companies. Strategies vary.
Fossil fuel reserves exclusion
Avoid investing in companies / assets with coal, oil and gas reserves. See individual entry information for further details. Ethical Values Led Exclusions
Ethical policies
Has policies that set out their position on ethical or 'personal values' based issues. Strategies vary.
Tobacco & related product manufacturers excluded
Companies are excluded if they are involved in any aspect of the production chain for tobacco products, including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Tobacco & related products - avoid where revenue > 5%
Companies are excluded if they make more than 5% of their revenue from the manufacture, sale or distribution of tobacco products including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Armaments manufacturers avoided
Avoids companies that manufacture weapons intended specifically for military use. Strategies vary - may or may not include non-strategic military products.
Civilian firearms production exclusion
Has a written civilian firearms exclusion policy - meaning that they will not invest in companies that make (or perhaps also sell) handguns made for non-military users.
Alcohol production excluded
Avoids companies that produce alcohol. Strategies vary; some may allow a small proportion of revenue to come from this area.
Gambling avoidance policy
Avoids companies with significant involvement in the gambling industry. Some may allow a small proportion of revenues to come from this area.
Pornography avoidance policy
Avoids companies that derive significant income from pornography and related areas. Strategies vary. Governance & Management
Governance policy
Has policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary.
Avoids companies with poor governance
Avoids investing in companies with poor governance practices.(e.g. board structure, management practices etc.) Views may however vary on what counts as 'poor' practices - and funds may not immediately divest as they may prefer to work to encourage higher standards.
UN sanctions exclusion
Exclude companies that are subject to United Nations sanctions. See eg https://main.un.org/securitycouncil/en/content/un-sc-consolidated-list Product / Service Governance
ESG integration strategy
Find fund / asset managers that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature. Asset Size
Over 50% large cap companies
Invests more than half of their money into what are commonly regarded as 'large companies'. This will typically mean that the market capitalisation (or value) of the companies they hold is in excess of £5 to £10 billion.
Invests mostly in large cap companies / assets
Invests mainly in larger companies / assets. (e.g. over circa £5-£10bn) How The Fund/Portfolio Works
Negative selection bias
Has principle 'ethical approach' to avoid companies by using negative screening criteria. Strategies vary.
Strictly screened ethical investment
Has principle approach to apply positive or negative ethical, social and / or environmental screens. Strictly screened investments are likely to exclude more companies than other related options. Strategies vary.
ESG weighted / tilt
Invest more heavily in assets which have higher ESG ratings/standards or scores and less heavily in companies with lower ESG ratings. Where this is central to the strategy you should expect assets in most sectors. Strategies vary.
Combines norms based exclusions with other SRI criteria
Investment selection process uses internationally agreed 'norms' (e.g. United Nations Global Compact - UNGC - or the UN Sustainable Development Goals - SDGs) alongside additional SRI criteria such as positive or negative stock selection policies and/or stewardship strategies.
Combines ESG strategy with other SRI criteria
Invests in assets which have an ESG strategy (which is typically focused on avoiding companies that pose environmental, social or governance related risks) together with additional criteria such as positive and/or negative screens, themes and stewardship strategies.
Norms focus
Uses internationally agreed standards, conventions and 'norms' to help direct investment decisions (e.g. the UN Global Compact, UN Sustainable Development Goals).
ESG risk mitigation focus
Focuses on the careful management of environmental, social and governance (ESG) related risks - typically by avoiding or being underweight in companies seen as posing major risks in these areas (i.e. not necessarily by using themes, exclusions etc).
SRI / ESG / Ethical policies explained on website
Publish explanations of their ethical, social and/or environmental policies online (i.e. investment decision making strategies/ buy/sell &/or asset management strategies).
Different risk options of this strategy are available
Has different risk options for the same investment strategy
Do not use stock / securities lending
Does not use stock lending for performance or risk purposes. Intended Clients & Product Options
Intended for clients interested in sustainability
Designed to meet the needs of individual investors with an interest in sustainability issues. Labels & Accreditations
SFDR Article 8 fund / product (EU)
Find options classified under Article 8 of the EU’s SFDR (Sustainable Finance Disclosure Requirements). Article 8 of the SFDR is a set of requirements that apply to financial products that 'promote' environmental or social characteristics together with high governance. These rules do not currently apply to UK products so many managers may leave this field blank. Fund Management Company InformationAbout The Business
Boutique / specialist fund management company
Find fund / asset management companies that are smaller or specialise in particular areas - notably, ideally ESG related. Strategies vary.
Responsible ownership / stewardship policy or strategy (AFM companywide)
Finds fund / asset management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.
ESG / SRI engagement (AFM companywide)
Find fund / asset management companies that actively encourage higher 'environmental, social and governance' and / or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
Vote all* shares at AGMs / EGMs (AFM companywide)
Find fund / asset managers that vote all* the shares they own at Annual General Meetings and Extraordinary General Meetings. A commitment to voting shares is a key indicator of 'responsible share ownership' demonstrating their support for or disagreement with management policy. (*situations can legitimately, occasionally occur where voting proves impossible, but in principle all shares should be voted.)
Responsible ownership / ESG a key differentiator (AFM companywide)
Find fund / asset managers that consider responsible ownership and ESG to be a key differentiator for their business.
Responsible ownership policy for non SRI / sustainable options (AFM companywide)
Find options run by managers that apply Responsible ownership or 'Stewardship' policies to all or most of their investment assets. This means active involvement (e.g. voting, dialogue) with the companies across all or most funds, products and services.
Integrates ESG factors into all / most research (AFM companywide)
Find fund / asset management companies that consider environmental, social and governance (ESG) issues when deciding whether or not to invest in a company for all / almost all of their funds and other assets. This is increasingly seen as part of sound risk management.
In-house diversity improvement programme (AFM companywide)
Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.
Invests in newly listed companies (AFM companywide)
This fund / asset management company invests in companies which have recently listed on a stock exchange (which is important as it can help grow new businesses).
Invests in new sustainability linked bond issuances (AFM companywide)
Fund / asset management company has investments in bonds designed to meet sustainability requirements - however these assets may not be 'ringfenced' for this purpose. See website for details. Collaborations & Affiliations
PRI signatory
Find fund / asset management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
Investment Association (IA) member
Fund management entity is a member of the Investment Association https://www.theia.org/ Resources
In-house responsible ownership / voting expertise
Find fund / asset management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.
Employ specialist ESG / SRI / sustainability researchers
Find a fund / asset management company that directly employs specialist ESG/SRI/sustainability researchers or analysts. This allows asset managers to discuss environmental, social and governance risks and opportunities directly with companies.
Use specialist ESG / SRI / sustainability research companies
Find fund / asset management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors.
ESG specialists on all investment desks (AFM companywide)
Finds organisations / fund managers that have one or more ESG/sustainability experts on all investment teams or 'desks' (all asset types) Accreditations
UK Stewardship Code signatory (AFM companywide)
Find fund / asset managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where managers are encouraged to behave like responsible, typically longer term 'company owners'. Engagement Approach
Regularly lead collaborative ESG initiatives (AFM companywide)
Find fund / asset management companies that regularly initiate or run industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
Engaging on climate change issues
Fund / asset manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
Engaging with fossil fuel companies on climate change
Fund / asset manager has a stewardship /responsible ownership strategy that involves working with fossil fuel companies on climate change related issues. See fund manager website for details.
Engaging to encourage responsible mining practices
Fund / asset manager has a stewardship / responsible ownership policy that means they are working to encourage more responsible mining practices - where environmental and social issues are properly dealt with by the companies they invest in.
Engaging to encourage a Just Transition
Fund / asset manager has a responsible ownership / stewardship strategy which means they are working to encourage the shift to more sustainable business practices in ways that respect and are sensitive to social issues and the impact change has on people effected by the changes that are taking place. https://www.transitionpathwayinitiative.org/ https://transitiontaskforce.net/
Engaging on human rights issues
Fund / asset manager has responsible ownership / stewardship strategy in place which aims to address human rights issues in investee companies (and potentially their suppliers) with the aim of raising standards
Engaging on governance issues
Fund / asset managers have stewardship strategies in place that focus on improving governance standards across investee assets
Engaging on responsible supply chain issues
Has a stewardship / responsible ownership strategy that encourages responsible supply chain - ie the managers will discuss environmental, social and governance issues with investee companies with the aim of raising standards
Stewardship escalation policy
Escalation policies describe how a manager will proceed if stewardship / engagement activity is not successful in the short term. Company Wide Exclusions
Controversial weapons avoidance policy (AFM companywide)
Find fund / asset management companies (not funds) that avoid investment in 'controversial weapons' across all of their funds and other investment vehicles. Climate & Net Zero Transition
Net Zero commitment (AFM companywide)
Fund / asset management organisations that have pledged to reduce their greenhouse gas emissions to ‘net zero’. Strategies vary - this area is changing rapidly.
Encourage carbon / greenhouse gas reduction (AFM companywide)
Find fund / asset management companies that are working with the companies they invest in to encourage reductions in carbon dioxide and other greenhouse gas emissions.
Carbon offsetting - offset carbon as part of net zero plan (AFM companywide)
This fund / asset management company plans to achieve net zero greenhouse gas (CO2e) emissions with the help of a scheme that will lock away an amount of carbon that is equivalent to the company’s own emissions – so that the end result is ‘net zero’. Calculations and scope vary.
Working towards a ‘Net Zero’ commitment (AFM companywide)
Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to 'zero'. Transparency
Publish responsible ownership / stewardship report (AFM companywide)
Find fund / asset management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.
Full stewardship / responsible ownership policy information on company website
Find fund / asset management companies that publish information about their sustainable and responsible investment strategies on their company website.
Publish full voting record (AFM companywide)
Fund / asset management companies that publish a full record of how they vote their shares at AGMs (annual general meetings) and EGMs (extraordinary general meetings). Voting strategies have an important role to play encouraging higher environmental, social and governance standards. Sustainable, Responsible &/or ESG Policy:The manager views the concept of sustainability as applicable to the assessment of environmental, social and governance (“ESG”) aspects of companies that issue equities. In assessing the ESG aspects of issuers, the manager considers this review as integrated into broader fundamental analysis. The manager integrates ESG analysis into investment decision making as it is believed that consideration of the broad array of risks that a company faces, or may face in the future, including environmental, social and governance factors, helps us to make better investment decisions. This analysis is supported by third party research and data from external providers such as Sustainalytics, Bloomberg, and ISS. The manager also believes that ESG analysis can help to identify potential sources of return from companies that are improving their ESG profiles or engaging with investors. Analysis of the key social and environmental risks, the company’s track record on managing these risks and an assessment of any mitigating factors is incorporated into the analysis of a potential investment. The strategy is actively managed to maintain a quality bias when considering ESG profile, measured by ESG risk ratings, as provided by Sustainalytics or an equivalent third-party sustainability provider. The strategy commits to maintaining the weighted average ESG risk rating for the strategy below (i.e. superior to) the reference index. The strategy maintains a greenhouse gas intensity of investee companies that is 20% lower than the reference benchmark. Exclusions As part of the strategy, a series of hard exclusions is applied with respect to some product and business practices that encompasses harmful activities that are not tolerated over any time frame. Hard exclusions apply in respect of issuers that:
The strategy places additional focus on investing in issuers that are compatible with the long-term climate change objectives of the Paris Agreement. The Investment Manager considers compatibility in relation to analysis of business models positioned to protect their profitability and cash flows under the assumption of an introduction of carbon pricing. Carbon pricing is a method of assigning a price of the externalities of carbon emissions. The manager applies a consistent price per tonne of carbon emitted to all businesses analysed as a means to help ensure that the business demonstrates sound environmental characteristics along with the financial ability to suffer carbon costs and the cost of transition. Process:As a starting point for security selection, the strategy avoids investments in companies that engage in product and business practices that encompasses harmful activities that are not tolerated over any time frame. Redwheel uses an expert third-party sustainability data provider to generate a list of issuers that are considered to be in breach of the exclusion criteria at a given point in time. Sustainability factors are viewed as primarily a risk to a company’s cash flows and the durability of their long-term returns. Hence, the Team aim to explicitly capture all potential ESG-related financial costs during their initial analysis. The Team look for companies that have the ability to suffer the transition through its ESG challenges. As part of the consideration of an issuer's sustainability factors, specific consideration is paid to social and employee matters, with focus on UN Global Compact principles. Focus is also placed on greenhouse gas emissions. The Team do not apply thresholds at the issuer level but considers management's awareness, policy and progress of this issue as well as the presence of carbon emission reduction initiatives. The strategy places additional focus on investing in issuers that are compatible with the long-term climate change objectives of the Paris Agreement. The Team considers compatibility in relation to analysis of business models positioned to protect their profitability and cash flows under the assumption of an introduction of carbon pricing. Carbon pricing is a method of assigning a price of the externalities of carbon emissions. The Team applies a consistent price per tonne of carbon emitted to all businesses analysed as a means to help ensure that the business demonstrates sound environmental characteristics along with the financial ability to suffer carbon costs and the cost of transition. On behalf of its investors, the manager undertakes stewardship activities with investee companies to understand, monitor and advise on relevant sustainability issues. Stewardship activities include meetings with company management and proxy voting. Redwheel processes and uses sustainability data from a number of external providers, particularly to support research, security selection, portfolio management and stewardship. Data providers include Sustainalytics, ISS and SDI AOP. All third-party sustainability data used within investment processes is scrutinised by the manager. The manager may disagree with or not have confidence in the data if it considers the data to be out of date or otherwise factually incorrect. In this instance, the manager may seek the advice of the central Sustainability Team. The Sustainability Team may in exceptional circumstances approve an overrule of the data received and will also, as appropriate, raise perceived errors with the third-party data provider. Resources, Affiliations & Corporate Strategies:Our investment teams and wider business are supported and challenged by specialists split across three sustainability verticals: The Strategy, Governance and Policy team is led by Olivia Seddon-Daines and is responsible for policy design, sustainability strategy setting, building and operating governance processes, communication and advisory with investment teams, and communication with a range of internal and external key stakeholders. Olivia is supported by Djolan Captieux and Emma Kurtz. The Stewardship and Regulatory Change team is led by Chris Anker who supports investment teams with engagement and proxy voting and, working closely with our Legal and Compliance teams, monitors and evaluates global regulatory initiatives relating to responsible investment The Thematic Sustainability Research team, Greenwheel, is led by Stephanie Kelly. This team’s remit is to produce thematic sustainability research commissioned by Redwheel investment teams and support Redwheel’s responsible, transition and sustainable investment strategies at each stage of the product life cycle. Stephanie is supported by a team of specialists with experience from within and outside the asset management industry. Her team includes Jessica Wan who leads social research and Paul Drummond who leads climate and environment research both of whom joined in 2023. Olivia, Chris and Stephanie report directly into our Head of Investments Arthur Grigoryants who is executive level sponsor for our firm's activities relating to responsible investment. His regular interactions with investment team heads ensures frequent reflection on evolving client interests. All investment teams are encouraged to actively engage and participate in the work of Redwheel’s Sustainability Forum, whose principal aim is to support debate and discussion on ESG integration approaches. The forum meets on a monthly basis and provides a key mechanism for our business and our investment teams to:
Governance and oversight is provided via the Redwheel Sustainability Committee. Standing committee members in addition to Heads of sustainability functions include CEO Tord Stallvik and Head of Investments Arthur Grigoryants, who are both members of Redwheel’s Executive Committee. The Sustainability Committee meets formally on a quarterly basis to review sustainability issues both in a corporate sense and in terms of the delivery of responsible investment in practice by our investment Redwheel are a signatory or a supporter of the following organisations and initiatives:
SDR Labelling:Not eligible to use label (out of scope) |
||||||||