Stewardship: Responsible Investment and Environmental, Social and Governance Factors

Governance, social and environmental issues are an important part of considering the potential return of an investment. In the case of shares in companies, for example, the ability of the management team is an important governance factor determining potential future success or failure. We cannot underestimate the potential impact of a changing climate on the long-term future of companies, whether that be through potential government measures to limit the emission of greenhouse gases, or adaptations required to operate in a changing, warmer climate. However, the issue of climate change and the impact on investments is more uncertain in the near-term. Will the COP21 Paris agreement lead to a widespread carbon tax, or substantive limitations on greenhouse gas emissions, for example? Will it even lead to a reduction in subsidies for fossil fuels? We don’t know the answers to these questions for certain but they do play a role in evaluating the prospects for companies and the risks attached to investments. They are therefore issues we must consider.

This part of our website describes the approach we take to environmental, social and governance (ESG) factors and to responsible investment more generally.

  • Our proxy voting policy can be viewed here.
  • Reports are also available on governance and our engagement with companies here.

Fund managers are stewards of their clients’ funds. It is in our role as shareholders that we are in a position to exercise that role and assist companies in protecting, and growing, returns for our clients. In the UK, we are required by law to provide a statement on our compliance policy in accordance with the UK Stewardship Code. The full statement, which describes how we engage with companies to the benefit of our clients can be viewed here.

ARTICLES AND UPDATES

22 September 2016

 

We have updated our statement of compliance with the Stewardship Code.  The new statement better describes our approach to stewardship, engaging with companies to protect and improve their value in the interests of our clients.  

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17 October 2016

 

Old Mutual Wealth, of which Old Mutual Global Investors forms a part, has adopted a policy preventing the funds which we manage in-house from knowingly investing in securities of companies which make, develop or trade anti-personnel mines of cluster munitions.

One reason for adopting this policy is that some of our clients are prevented, by law, from investing in these controversial weapons.  More importantly, not investing in these munitions is simply the right thing to do. You can review our controversial weapons policy here.

   

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OTHER INFORMATION

Voting according to our policy

Learn more about how we voted according to our voting policy.

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Stewardship and the UK Stewardship code

Our statement of compliance with the UK Stewardship Code.

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Executive pay in the UK

Our position on executive pay in the UK.

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