SRI Styles Directory

Segmenting SRI options by their key SRI & ethical attributes

The Fund EcoMarket database tool segments ‘Sustainable and Responsible Investment’ options according to their ‘core SRI attributes’ or ‘Styles’. 

These are the features that primarily differentiate such investments from other fund options, they are also often the key reason SRI and ethical funds are of interest to clients.

For the purpose of this tool  ‘core SRI attributes’ means ‘the way a fund deals with ethical, social, environmental and/or governance related issues’.

The SRI Styles or  ‘segments’ we have identified are:

  • ‘Balanced’ Ethical funds combine a wide range of positive and negative ethical screening policies as part of their investment strategies and may apply ‘best in sector’ strategies.
  • ‘Negative’ Ethical funds use clear, often strict, negative ‘ethical’ screens to avoid a number of areas on ethical grounds (eg armaments, tobacco).
  • Sustainability Themed funds focus on sustainability related issues and opportunities as part of their investment strategy.
  • Environmental themed funds significantly integrate environmental issues into their investment strategies, sometimes alongside ethical avoidance criteria – sometimes with a focus on ‘solutions’ companies.
  • Social Themed funds focus on ‘people issues’ (such as employment and basic necessities of life) and assess societal benefits as well as financial return
  • Faith Based investments invest in line with specific religious principles (eg Shariah Law)
  • ESG Integration – a ‘corporate level’ strategy whereby some fund managers consider Environmental, Social and Governance issues as part of their regular investment analysis for all funds
  • ‘Responsible Ownership’ – a ‘corporate level’ strategy whereby some fund managers use their position as investors to encourage the companies they invest in to raise their standards across key environmental, social, governance or other issues.

 

How are ‘SRI Styles’ useful to financial advisers?

Segmenting the SRI market into ‘Styles’ can help simplify the SRI advice process for many ethically minded clients.

Advisers can identify which SRI Styles best suit their clients needs (via the Fund EcoMarket tool  ‘SRI Aims’ question, or via the SRI StyleFinder client microsite) .  Findings can then be matched to our segmented SRI fund database (Fund EcoMarket).  This enables advisers to fact find their client’s SRI Aims and identify all potentially relevant SRI options quickly and easily.

This system is based on publicly available information – although we contact fund managers to collect additional information as required.

  Further information and links

Go to www.FundEcoMarket.co.uk

Some small print:

  • The Fund EcoMarket database lists Life, Pension, OEIC/UT and IT funds but does not currently include Discretionary Fund Management, Impact Investment, Offshore investment, Unregulated or Ethical Banking options.
  • The Fund EcoMarket contains fund information supplied by Capita/ Synaptic Research as well as from primary research carried out by sriServices.
  •  sriServices makes no judgement regarding the quality or appropriateness of investments or SRI strategies as different strategies suit different clients.
  • This information is not intended to be viewed as advice or any form of recommendation.
  • sriServices is not regulated or authorised to offer advice.  Nothing we publish is intended to be interpreted as financial advice of any kind.
  •  Advisers are responsible for their own compliance processes and recommendations.
  • SRI Styles are not pre-approved or reviewed by fund managers (although we are always willing to take opinions into account.)
  • Intellectual Property rights reserved.  This system has been developed by – and is owned by – Julia Dreblow of sriServices.

 

This information is for use by UK professional financial advisers only. SRI Services is not authorised to give investment advice, if you are an individual investor you can find an IFA on www.unbiased.co.uk. The information on this site does not in any way constitute advice or recommendation. The information and tools are intended to compliment, not replace existing adviser information sources. Investment decisions should not be based on the information contained on this site alone. Please confirm fund information with fund managers. We cannot be held in responsible for advice given as a result of using this site and are not responsible for the content of sites linked to this service, we do however of course take every effort to ensure the content of this site is as accurate as possible at time of publication.