Sustainable and Responsible Investments
Sustainable and Responsible Investment funds (known as SRI) operate in exactly the same way as other OEIC funds, except that the fund manager applies a strict investment criteria to the companies that the funds invest in. This involves:
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Avoiding companies who engage in or profit from any one of a number of banned activities, and
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Encouraging Sustainable and Responsible behaviour in firms, with a view to improving their long-term performance.
Key benefits of SRI
SRI funds are not only for ethical investors; they also appeal to investors looking to invest in well run, responsibly-managed companies that are targeting future returns in a variety of sustainable businesses. In particular, SRI funds offer:
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Responsible investing
– SRI OEICs offer investors the reassurance that their cash is being invested in a way that punishes unethical behaviour and rewards progressive business practices.
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Rigorous policing
– Dedicated SRI teams closely analyse and monitor all aspects of a company’s behaviour to assess their suitability as investments.
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Profiting from SRI behaviour
- Good corporate behaviour can lead to greater profits. Climate change, for instance, is an area in which specialist companies are able to make handsome returns, while mainstream companies can benefit from being more energy-conscious and lowering their fuel bills.
The Henderson SRI OEIC range
Henderson has been managing SRI investments since 1977, and has an established track record of incorporating sustainability, social responsibility and ethical
factors into asset management. The Henderson SRI team takes a long-term approach to investing, with stocks held for an average of three years, much longer than the average fund management holding period. This focused approach is designed to uncover a range of opportunities with the potential to deliver superior financial returns over the longer term.
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