Jupiter Asset Management is attempting to encourage greater transparency in the reporting of "engage...
Jupiter Asset Management is attempting to encourage greater transparency in the reporting of "engagement activity" by socially responsible funds through the publication of a new report detailing how they do so and which firms they have spoken to.
Entitled "Jupiter's approach to engagement ....being part of the process of change", the report details an ongoing initiative to target pensions funds, local authorities and consultants.
Jupiter believes these groups should use their collective powers to investment only in companies which are willing alter their corporate governance, to reduce environmental and/or social impacts, providing it does so without harming financial performance or risk management.
Their approach to responsible shareholding is based on a programme of constructive dialogue and engagement, through the Jupiter Environmental Research Unit, which accompanies management of its four SRI funds:
·Jupiter Ecology Fund
·Jupiter Environmental Opportunities Fund
·Jupiter Global Green Investment Trust, and
·Jupiter Global SRI Fund (a sub-fund of the Jupiter Global Active Fund SICAV).
One of the successful campaigns in which Jupiter engaged - along with Morley, Henderson and Friends Provident to name a few of the SRI engagement firms - was is attempt to persuade companies to pull out of Myanmar, Burma, unless they could help to change the human rights of its people.
Only recently, three very different companies - Housebuilder Countryside Properties, property developer Development Securities and ICI - have taken up the engagement process to try and ensure their policies better meet the SRI needs of pension funds and other institutional investors.
Details of how the funds are run and the process used to encourage social engagement is available on its www.jupiteronline.co.uk website, as the "green" section explains:
·Who runs the Jupiter SRI funds
·How it researches companies
·What Jupiter SRI funds invest in
·What the funds avoid
Under their engagement policy, a company is not excluded from a client's portfolio because of poor environmental or social performance, rather the research team tries to encourage the senior management of companies - whose shares are held within portfolios managed by Jupiter - to reduce the negative environmental and social impacts of their business activities. The report includes examples of organisations it has engaged with.
Partner Insight: Introducing the Architas education series for clients.
'Fewer than 1% of firms PROD-compliant' - Rory Percival
'Left holding the can'
'VCTs and EIS compared' panel
Letter to Women and Equalities Committee