Active Equity Strategy
External equity managers are required to follow PRI principles and they are not permitted to own tobacco or armament securities. As of September 2019, OIM has also committed to the complete dievestment and exclusion of thermal coal. We do not have any external fixed income managers. Most of the Fund's assets are internally managed.
Passive Equity Strategy
Transition to a Low Carbon Economy More investors – from global institutions to individuals – are looking to address the risk of climate change within their portfolios.
Moving beyond divestment allows portfolio to balance between carbon reduction and seeking similar risk/return as the broad market
- Maintain global stock exposure by placing as a core or satellite equity holding to reduce carbon footprint of your portfolio
How the index is built
- An optimization process aims to minimize the carbon exposure, subject to constraints*.
- The carbon exposure of a security is measured in terms of its greenhouse gas (GHG) emissions and its potential carbon emissions from fossil fuel reserves.
Apply the following constraints:
- Tracking Error: 30 basis points • Sector Weight: +/- 2% absolute sector difference vs Parent Index. (Energy sector has no weight constraints) • Country Weight: +/- 2% absolute country difference vs Parent Index • Issue weight: Single security maximum weight restricted to 20 times the Parent Index Weight • Minimum number of constituents: 400