Man Group announces new RI exclusion list
Active investment firm, Man Group, has announced further improvements towards its commitment to responsible investment (RI) by introducing the firm’s new RI fund framework and RI exclusions list.
The RI fund framework would be a formal structure quantifying the degree of RI focus for all of its funds, while the RI exclusions list would name all sectors and companies that were no longer eligible for Man Group’s portfolios.
Additionally, the new framework would provide baseline requirements of environmental, social, governance (ESG) standards and would establish three categories for all Man Group’s funds:
- The base standard;
- Funds with a further level of RI integration; and
- A standard for RI-dedicated funds
Man Group’s RI exclusions list would aim to designate sectors excluded from the company’s RI-integrated or RI-dedicated funds. This would include sectors such as:
- controversial weapons – companies involved in the production of anti-personnel mines, cluster munitions, chemical, biological weapons, depleted uranium weapons or nuclear weapons;
- tobacco – this would apply to companies that are involved in the production of tobacco or are suppliers of significant components of cigarettes; and
- production of coal and coal-based energy – companies where the production of coal or provision of coal-based energy represents more than 30 per cent of revenues
The firm also established a new RI exclusions committee, which would focus on developing further guidelines to direct exclusions, and would review and report any amendments and exclusions to Man group’s RI committee.
AUTHOR
Oksana Patron
Recommended for you
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
Responsible investment performance concerns have lessened as the market hits $1.6 trillion in AUM, according to RIAA’s annual report, but greenwashing fears among asset managers are on the rise.
Research by Morningstar has found fixed income funds are bucking a general trend around managed fund fee dispersion with a smaller fee dispersion compared to equity ones.
As investors seek to diversify their portfolios, the naming of bond labels has broadened out to include green, social and impact bonds, according to the annual RIAA report.
