Solaris commenced management of one negatively screened client portfolio during 2016, another negatively screened portfolio in 2017 and another in 2019. Those mandates require that stocks are screened based on products, activities and sectors.
All portfolios participate in the Solaris process where active discussion is held around country / geopolitical risks. Where Solaris feels that these risks are too great we may choose to avoid (or screen out) companies with material exposure to those countries. Similarly companies may exhibit behaviours that are assessed as untenable in terms of investment risk. For example (this list is not exhaustive):
- legacy issues relating to pollution or remediation issues
- inappropriate labour use within the supply chain.
- insufficient governance controls or evidence of poor governance leading to other concerns within the company - eg safety failures, exposure to corrupt practices
Companies are assessed on a case by case basis and to date we have excluded a number of stocks on the basis of these concerns.