The
Alpha Common Investment Funds recognise that social and environmental
responsibility are increasingly important and sensitive issues
for charities.
One of the attractions of using Sarasin & Partners as the investment
manager for the two Alpha Common Investment Funds is that
The Bank Sarasin Group is one of the leading SRI managers
in Europe. Bank Sarasin has a 17 strong team of managers and
analysts founded in 1989, which manages just under £1bn
of SRI funds. In addition, Sarasin & Partners in London has
a wealth of experience in dealing with ethical investment
for charities, and works closely with EIRIS.
The Alpha Common Investment Funds’ policy is to
avoid investment in companies with more than 10% of their
turnover in:
| • |
Alcohol Manufacture |
| • |
Armaments |
| • |
Gambling |
| • |
Pornography |
| • |
Tobacco |
We do not believe that these restrictions will materially
affect the performance of the two Alpha Common Investment
Funds.
In addition, The Alpha Common Investment Fund will publish
an audit of the “sustainability” of the underlying
investments. Reporting and management of non-financial aspects
of business are becoming increasingly important for companies
and hence for investors. This is partially for ethical reasons
– investors want to invest in companies that act environmentally
and socially responsible, but also for financial reasons –
irresponsible behaviour of companies involves higher risks
such as reputation risks.
Bank Sarasin and Sarasin & Partners have recently developed
an audit that screens for various negative and positive social
and ethical criteria. The results will increase trustee awareness
of the social and ethical risks being taken within the Alpha
Common Investment Funds.
The analysis not only considers working practices, but also
each company’s products through their entire life cycle.
It considers the policies of various bond issuers, including
governments.
The results judge the “sustainability” of a company’s
business model and products or the quality of a government’s
regime. They are expressed on a stock-by-stock basis, as well
as by comparing the portfolio as a whole to a relevant index.
The Sustainable Investment Portfolio Audit is published
and updated in the e-community.
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