Screened strategies are driven by both client specific restrictions on segregated mandates and fund level restrictions on a number of internally managed funds. Client specific restrictions are driven from client requirements and include provisions in their investment mandate that preclude us from investing in certain sectors due to social or ethical considerations including alcohol, armaments, gambling, adult content and tobacco.
We generally do not exclude on the basis of industry, but instead incorporate material issues into the investment research and analysis. We are ultimately looking for sustainable long-term sustainable growth and therefore these issues do matter both from a positive and negative perspective.
There are a number of investment strategies that run an ethical pooled vehicle with pre-determined screens alongside the primary investment strategy. Screens applied to these strategies include norms based screens and revenue based business activity screens.
When screening applies, data from an external research provider is used to screen companies’ performance relative to various ESG factors