AXA Ethical Distribution Ret Acc (OEIC/Unit Trust)
SRI / Ethical Overview
The aim of this Fund is to achieve income with some prospects for capital growth over the long-term.
The Fund invests in shares of UK companies, in accordance with its ethical screening criteria, whose products, services or method of operation do not involve, conduct or carry out:
- testing on animals or use animal-tested products
- violations of human rights
- intensive farming
- significant sales to the international military
- unacceptable levels of water pollution
- the use of unsustainable timber or
- activities deemed detrimental to the developing countries
or which do not derive a significant proportion of their annual turnover from fossil fuels, energy intensive industries, mining, nuclear power, ozone-depleting chemicals, pornography and adult entertainment services or tobacco.
The Fund also invests in bonds issued by the UK government (gilts), including index-linked gilts, and cash. The screening process only applies to equity holdings (companies) in the portfolio, not to government bonds.
For the full investment objective you should refer to the prospectus of the AXA Distribution Investment Company ICVC https://www.axa-im.com/en/responsible-investing
(Source: Ethical Principles Factsheet on Website)
SRI Policies (Primary strategy in bold)
- Environmental policy Find investment funds with environmental policies - ie that consider issues such as pollution, climate change, resource management, environmental impact. This will include options from all of the different SRI Styles, including funds where their core strategy is to focus on other areas such as ethical funds. See fund information for fund specific policy details.
- 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.
- Animal welfare policy Find ethical fund options that have policies that require specific animal welfare standards to be adopted by investee companies in order for them to be considered for inclusion within the fund.
- Animal testing exclusion policy Find ethical investment options that avoid companies that are involved in testing their products on animals. Ethical fund strategies vary - some exclude all companies that test on animals, others allow companies that test for medical purposes or where required by law. Read fund details for fund specific information.
- Tobacco production avoided Find fund options that exclude manufacturers of tobacco (or related) products. This typically relates to ethical funds however funds from other SRI Styles commonly avoid this area also. Strategies vary and funds may invest in retailers of such products (e.g. supermarkets or hotels.) See fund information for further information.
- Armaments manufacturers avoided Find ethical fund (and other SRI) options that avoid avoids companies that manufacture products intended specifically for military use. Fund strategies vary - particularly with regard to non strategic military products. Read fund literature for specific details.
- Nuclear exclusion policy Find ethical funds (and other options) that have a published policy that sets out the fund's position on avoiding or limiting exposure to nuclear power. See fund literature for details of their policy.
- Coal, oil &/or gas majors excluded Find sustainable investment and ethical fund options that avoid significant involvement in coal, oil and/or gas producing companies. Funds vary. See individual fund literature to confirm details.
- Gambling avoidance policy Find ethical fund options (and other options) that avoid companies with significant involvement in the gambling industry. See fund policy for details.
- Pornography avoidance policy Find ethical fund option - and in some cases other options - that avoid companies that derive significant income from pornography. See fund details for further information.
- 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.
- Deforestation / palm oil policy Find funds that have policies in place that ensure they do not invest in companies that are significantly involved in deforestation, this typically relates to palm oil plantations.
- Water / sanitation policy Find funds that have policies that focus on the the water industry and/or sanitation.