It remains a subjective topic. However, I have seen numerous SRI or ESG funds that have exposure to stocks that one would rightly question what they positively contribute to society.
What is at the forefront of the thinking when the manager compiles the portfolio? I have no doubt that in some cases it is more akin to :’This stock is great, let’s justify its inclusion’.
Paul Warner, head of our ethical and SRI mandates, has been investing responsibly for close to quarter of a century. His contribution to our investment committee has cultivated a more responsible way of investing, helping cross pollinate conventional mandates.
We recognise we will not always get it spot on, but we want genuinely responsible and sustainable investments to be embedded within all our products and solutions not because of popular consensus, but on merit.
The same merits that any other investment is included. The yardstick does not change to accommodate.