Fund Name | SRI Style | Product | Region | Asset Type | Launch Date | |
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RLP Ethical Bond Pn | Ethical | Pension | UK | Fixed Interest | 26/03/2010 | |
As at: 28/02/22 |
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OverviewThis Pension product is linked to the "Royal London Ethical Bond" fund. The following information refers to the primary (OIEC) fund.
Awaiting update from fund manager - fund last updated April 2022
The fund has an ethical overlay. Our ethical investment process begins with screening for eligible investments, which is conducted by our in-house team of experts using specialist research from MSCI ESG Research and Glass Lewis. Our in-house team has extensive knowledge of environmental, social and governance (ESG) issues and has created a bespoke approach to assessing ESG from a credit perspective. RLAM’s ethical framework combines the avoidance of companies involved in excluded activities with the identification of best of breed companies in permitted sectors and integration of material ESG issues into investment decision-making. The screening process identifies companies that have the opportunity to make a positive impact. Companies with inappropriate or inadequate policies or systems in the following areas are also excluded.
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FiltersFund informationSustainabilityEnvironmental policy Limits exposure to carbon intensive industries Environmental damage and pollution policy Encourage more sustainable practices through stewardship Climate Change & EnergyCoal, oil & / or gas majors excluded Climate change / greenhouse gas emissions policy Encourage transition to low carbon through stewardship activity Human RightsHuman rights policy Social / EmploymentSocial policy Ethical Values Led ExclusionsEthical policies Animal testing exclusion policy Tobacco and related product manufacturers excluded Armaments manufacturers avoided Alcohol production excluded Gambling avoidance policy Pornography avoidance policy Animal testing - excluded except if for medical purposes Governance & ManagementEncourage board diversity e.g. gender Encourage TCFD alignment for banks & insurance companies Encourage higher ESG standards through stewardship activity Fund GovernanceESG integration strategy How The Fund WorksStrictly screened ethical fund Negative selection bias Combines ESG strategy with other SRI criteria Focus on ESG risk mitigation SRI / ESG / Ethical policies explained on website Labels & AccreditationsRSMR rated (OEIC funds only) Intended Clients & Product OptionsIntended for investors interested in sustainability Fund management company informationAbout The BusinessESG / SRI engagement (AFM company wide) Responsible ownership / stewardship policy or strategy (AFM company wide) Responsible ownership / ESG a key differentiator (AFM company wide) Diversity, equality & inclusion engagement policy (AFM company wide) Sustainable property strategy (AFM company wide) Vote all* shares at AGMs / EGMs (AFM company wide) Integrates ESG factors into all / most fund research In-house diversity improvement programme (AFM company wide) ResourcesIn-house responsible ownership / voting expertise Employ specialist ESG / SRI / sustainability researchers Use specialist ESG / SRI / sustainability research companies Collaborations & AffiliationsPRI signatory UKSIF member Climate Action 100+ or IIGCC member Fund EcoMarket partner UN Net Zero Asset Owners / Managers Alliance member AccreditationsUK Stewardship Code signatory (AFM company wide) PRI A+ rated (AFM company wide) Engagement ApproachRegularly lead collaborative ESG initiatives (AFM company wide) Company Wide ExclusionsReview(ing)carbon / fossil fuel exposure for all funds (AFM company wide) Controversial weapons avoidance policy (AFM company wide) Climate & Net Zero TransitionEncourage carbon / greenhouse gas reduction (AFM company wide) Net Zero commitment (AFM company wide) Working towards a ‘Net Zero’ commitment (AFM company wide) Carbon transition plan published (AFM company wide) ‘Forward Looking Climate Metrics’ published / ITR (AFM company wide) Carbon offsetting - offset carbon as part of our net zero plan (AFM company wide) In-house carbon / GHG reduction policy (AFM company wide) Publish 'CEO owned' Climate Risk policy (AFM company wide) Net Zero - have set a Net Zero target date (AFM company wide) Voting policy includes net zero targets (AFM company wide) TransparencyPublish full voting record (AFM company wide) Publish responsible ownership / stewardship report (AFM company wide) Full SRI policy information on company website Full SRI policy information available on request |
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PolicyCompanies that generate over 10% of their turnover from any one or a combination of the following five categories are excluded:
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ProcessRLAM has established and maintained a commendable reputation over the last two decades as a high quality, active fixed income manager. Our long-standing philosophy and process have been central to our success and consistent record of outperformance.
2. A focus on sustainability of opening lender position
3. Encouraging a collegiate approach to research
Over the longer term, we believe that sector and security selection will be the most important component of outperformance and that the contribution to performance of other factors will vary depending on market conditions.
Ethical overlay
The screening process also identifies companies that have the opportunity to make a positive impact. Companies with inappropriate or inadequate policies or systems in the following areas are also excluded:
We integrate ESG into our credit analysis as we principally see ourselves as long-term lenders of our clients’ money rather than short-term traders of bonds. The sustainability of our lending position is, therefore, critical and we tailor our approach both to the specifics of fixed income investing, reflecting the asymmetric nature of credit risk, as well as the particular characteristics of each issuer. We prioritise research on sectors where we feel there is most ESG risk and/or limited third party ESG research.
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Resources, Affiliations & Corporate StrategiesRLAM has an in-house team consisting of 11 Responsible Investment (RI) professionals that are a dedicated resource for implementing our stewardship and responsible investment activity by directly supporting front office teams to integrate material ESG research into investment processes.
UN PRI RLAM has been a signatory to the United Nations Principles for Responsible Investment (UN PRI) since 2008. As a result of our membership status, we commit to submitting and publishing our annual assessment response to demonstrate adherence to the principles. Our summary scorecard as at 2020 has been provided below. These scores are a testament to our continued efforts to become leading in responsible investment. We are engaging with the PRI to understand the current changes to its methodology and how we might need to adapt our practices to capture the required information according to these changes going forwards.
Stewardship Code For a long time, we have been a tier one signatory of the 2016 UK Stewardship Code. That is why we wanted to be early adopters of the 2020 UK Stewardship Code, following its release in October 2019. After implementing the new reporting standards set by the FRC in our 2020 Stewardship report, a year earlier than required, we received highly positive feedback from the FRC and were featured as examples of best practice throughout the FRC’s Review of Early Reporting. We were recently recognised as official signatories to the Financial Reporting Council’s UK Stewardship Code 2020. This follows the submission of our Stewardship and Responsible investment 2021 report (covering our stewardship and responsible activities in 2020) earlier this year.
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Literature
Important Information For further information, please contact: Royal London Asset Management Limited
Last amended: 06/01/24 03:55 |
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05/06/2024