Fund Name | SRI Style | Product | Region | Asset Type | Launch Date | |
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Royal London Short Term Money Market Fund |
Limited Exclusions | OEIC/Unit Trust | UK | Cash (or =) | 22/07/1999 | |
As at: 30/11/23 |
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OverviewAwaiting update from fund manager - fund last updated March 2021
The fund has an ethical overlay. Our ethical investment process begins with screening for eligible investments, which is conducted by specialist independent consultancy MSCI, a leading provider of research into the environmental, social and governance (ESG) and ethical performance of companies. This fund invests in short-dated and cash instruments like floating rate notes (secured on pools of residential mortgages) and certificates of deposit. All of our investments are with large, mainstream banks and financial institutions. However, we have undertaken an ESG review of the financial counterparties we have invested in to identify any high-level ESG risks that could affect the safety, security or viability of these cash investments. This includes reviewing issues like governance, cyber security, mortgage, and other underwriting standards, customer service and complaints, and controversial business activities.
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FiltersFund informationEthical Values Led ExclusionsTobacco and related product manufacturers excluded Armaments manufacturers avoided Civilian firearms production exclusion How The Fund WorksNegative selection bias Focus on ESG risk mitigation Intended Clients & Product OptionsPortfolio SRI / ESG options available (DFMs) Multiple SRI / ESG portfolio options available (DFMs) Bespoke SRI / ESG portfolios available (DFMs) Fund management company informationAbout The BusinessESG / SRI engagement (AFM company wide) Responsible ownership / stewardship policy or strategy (AFM company wide) Responsible ownership policy for non SRI funds (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 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) In-house carbon / GHG reduction policy (AFM company wide) TransparencyPublish full voting record (AFM company wide) Full SRI policy information on company website |
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PolicyRLAM’s ethical framework combines the avoidance of companies involved in excluded activities with the identification of best of breed companies in permitted sectors. Companies that generate over 10% of their turnover from either one or a combination of the following categories are excluded:
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ProcessRLAM’s investment team of fund managers and analysts work in a close and highly collegiate environment designed to encourage the free flow of thoughts and ideas across the team. The nature and size of the team enables new ideas and opportunities to be discussed freely. The close proximity of all members of the team allows agreed decisions to be implemented quickly, ensuring that all portfolios benefit from relevant new ideas with minimal delay. The individual fund managers consult with other team members and credit analysts in on-desk discussions. The Cash and Rates team and the rest of the Fixed Income team are central to the research process.
Cash
The funds may invest in covered bonds when thought appropriate by the managers. Issued by financial institutions, these bonds are asset backed, most often by a pool of mortgages. These highly liquid securities are regulated in the UK by the FCA and are exempt from being bailed-in.
Also, this threshold is deemed to be realistic and appropriate in terms of assessing a company, given that it may not be possible to always pinpoint the exact turnover derived from an excluded activity. This threshold ensures that a minimum of 90% of each holding meets the ethical criteria.
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Resources, Affiliations & Corporate StrategiesFor some time, RLAM has been a vocal critic of poor corporate governance. However, the acquisition in 2013 of The Co-operative Asset Management’s leading sustainable and Responsible Investment (RI) team was the surest statement of intent, and instantly made RLAM a major player in this market. RLAM has developed from having been simply a good steward of assets to choosing to make RI and sustainability one of its specialisms.
The team we acquired from The Co-operative Asset Management has significant experience of running Socially Responsible Investing (SRI) funds and RI, including non-screened funds. Adding this to RLAM’s track record on longevity, reputation and prudent management of risk, makes us well placed to become the trusted partner of charities, institutional investors and intermediaries seeking strong superior and sustained returns over the long term, and which reflect their goals.
RLAM has an in-house RI team of professionals that are dedicated to sustainable investing and ESG analysis for the business as a whole. This team has demonstrated its knowledge and expertise in the ESG space over the past 16 years, and are experts at integrating ESG across both equity and fixed income investment processes. As the demand for responsible investment grows, we can expect to expand our internal capability. Currently, we have a team of ten responsible investment specialists. In support of the responsible investment strategy, we hired seven additional people in 2019 with expertise in governance, climate risk, corporate sustainability consulting, responsible property investing, quantitative modelling, and marketing. The new roles were allocated to the Responsible Investment, Passive Equities, and Property teams.
The integration of ESG factors into investment decisions requires significant expertise and resource. While we do purchase research from third party providers, we believe ESG analysis is often best done internally as this allows the best decisions and greatest flexibility. We supplement this through a high quality external advisory committee who supplement our knowledge base and ensure we implement our principles in a dynamic and fast changing world.
We apply responsible investment to all of our asset classes. RLAM has been a signatory to the UN Principles for Responsible Investment (UNPRI) since 2008. Our membership demonstrates our commitment to stewardship and responsible investing, which is core to our investment proposition.
Principles for Responsible Investment RLAM has been a signatory to the United Nations Principles for Responsible Investment (UN PRI) since 2008. In July 2020, we were awarded A+ scores for our Strategy & Governance, Listed Equity Incorporation and Fixed Income (Corporate Non-Financial) modules following our 2019 assessment submission. Our relationship with the UN PRI sees us respond to consultations surrounding its reporting framework and engaging in collaborative initiatives to realise collective corporate goals. We often attend PRI events, both physically and through digital channels such as webinars. We continue to monitor the situation regarding the PRI's governance. We have collaborated in Clearinghouse initiatives from time to time where the objectives of the engagement are aligned with our own, and we also signed a joint letter coordinated by the PRI to initiate engagement with over 500 mining companies requesting health and safety information in relation to tailings dam management. We have also engaged with the PRI on how to improve the annual reporting and assessment process.
Just Transition Just transition was a request in the Paris Agreement signed in 2015. It represents an effort to move to a low carbon economy in a way that’s sustainable, and doesn’t create a skills gap for those who are directly or indirectly employed in the traditional fuel sector. In 2019, RLAM signed the Statement of Investor Commitment to Support a Just Transition on Climate Change. The statement was endorsed by 143 fellow investors and represented US9.1 trillion assets under management.
Climate Action 100+ RLAM is a signatory of the Climate Action 100+ (CA100+). We are co-leading the work on utilities as part of the European branch led by the Institutional Investor Group for Climate Change (IIGCC). We are also the lead investor on a number of company engagements.
Green Bond Principles We leverage these principles on an ongoing basis, we provide analysis to clients and attend seminars as participants where possible.
Institutional Investors Group on Climate Change (IIGCC) RLAM has long been a signatory and supporter of IIGCC. We have recently significantly increased our collaboration with this group after further expanding our team. We are an advisor to three IIGCC committees: portfolio alignment, resolutions, and sector coordination. RLAM collaborated with the IIGCC network to engage with companies regarding the decarbonisation and decentralisation within the UK gas sector. We are a regular spokesperson and supporter of IIGCC. We have also commented on key documents, including the oil and gas expectations for investors.
UK Sustainable Investment Forum (UKSIF) We regularly attend members' meetings and seminars/events held by UKSIF.
Access to Medicines Index We are a signatory to the initiative.
Workforce Disclosure Initiative (ShareAction) We co-signed on the Workforce Disclosure Initiative, convened by ShareAction.
30% Club Investor Group We participate in regular investor meetings to discuss board and executive diversity, and participate in collaborative engagement with companies and awareness raising activities.
During the first quarter of 2021, RLAM signed the Net Zero Asset Management initiative. The move marks the next natural step in our investment philosophy that further cements our commitment to meeting the goals of the Paris Agreement, and in turn, reinforcing our focus on supporting our clients' needs. RLAM joins the Net Zero Initiative with the precise conviction that low carbon transition requires an accelerated pace and contribution from all of society. The science behind a net zero target implies full decarbonisation of all sectors and geographies, and the utilisation of some negative emissions for residual hard-to-abate sectors. This is a major societal shift which we, as a firm, do not take lightly. For this reason, we will not claim success until we have achieved real economy impact.
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DialshifterOur organisation is helping to support the Paris Climate Agreement and the Race to Net Zero by… …committing to reduce greenhouse gas emissions across our investment portfolio of at least 50% by 2030, and net zero by 2050. While we continue to develop our Climate Transition Plan, in line with the IIGCC Net Zero Investment Framework, we seek to mitigate climate investment risks in three ways:
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Literature
Important Information
Last amended: 06/01/24 02:36 |
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04/29/2024