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‘Sin stocks’ still main ESG focus for many investment funds

By 3p Contributor

Only a minority of common investment funds (CIFs) consider issues outside of the traditional 'sin stocks' of tobacco, alcohol, gambling, military and pornography, according to the EIRIS Foundation's latest report, the 3rd edition of the guide 'Responsible Investment in Pooled Funds: A guide for charity trustees', sponsored by CCLA.

However, compared to the 2nd edition of this guide in 2009, a higher number of the fund managers included in the EIRIS Foundation's survey in 2013 provided details of a clear policy on engagement, voting and / or integration. In 2013 there were also more examples of fund managers being transparent about their policies and demonstrating how they had responded to charities' requests and needs.

The EIRIS Foundation's guide 'Responsible Investment in Pooled Funds: A guide for charity trustees' summarises the responses from the providers of forty five CIFs on their responsible investment approaches. The report is a guide to CIFs for charity trustees considering how their environmental, social, governance (ESG) and ethical concerns could be incorporated into their charity's investment choices.

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Read more stories by 3p Contributor