Stockholm (NordSIP) – Global active investment management Man Group last week both announced a Man Group RI Framework, a formalised structure quantifying the degree of Responsible Investment (RI) focus for all Man Group funds and a Man Group Responsible Investment Exclusion List, a proprietary list of sectors and companies ineligible for its portfolios.
The developments follow the formalisation in August of Man Group’s Responsible Investment Team, led by Man Group CIO Sandy Rattray and management by Co-Heads of Responsible Investment Steven Desmyter and Jason Mitchells.
“This is an important step for Man Group as we integrate responsible investing considerations into everything we do across the firm,” Rattray said in a press release. “We see clear demand from institutional investors for managers to demonstrate their commitment in this area and put action into words – with the introduction of both the RI Fund Framework and the RI Exclusions list, we are doing just that.”
“These developments will seek to ensure a clear and consistent approach to responsible investment across Man Group’s range of strategies, and inform the way we deliver our approach to ESG investing to meet the multitude of client preferences,” he added.
Man Group’s RI Fund Framework will establish a “baseline requirement” of ESG standards and provide consistency in its approach to RI across its range of funds, which will fall into three categories: the base standard, the standard for funds with a developed level of RI integration and the standard for purely RI-dedicated funds. Mandatory, company-wide exclusion policy on ownership in companies participating in controversial arms and munitions across all funds has been formalised, while all Man Group funds will receive 100% proxy voting with RI funds will be “subject to enhanced stewardship and engagement requirements.”
“Given the diversity of Man Group’s investment engines, we recognise the importance of developing a cohesive approach to RI across all asset classes and investment strategies in order to deliver a greater clarity and transparency,” said Co-Head for Responsible Investment Jason Mitchell. “These new developments are the culmination of a significant effort on the part of the team at Man Group and mark a milestone in the formalisation and progression of our approach to RI.”
In addition, Man Group will also introduce its RI Exclusions List, which excludes sectors and companies in line with international standards and global consensus such as those producing controversial weapons (anti-personnel mines, cluster munitions, chemical or biological weapons, depleted uranium weapons or nuclear weapons), tobacco and coal and coal-based energy (companies where production of coal or coal-based energy represents above 30% of revenue). A Committee has also been founded to develop guidelines to direct exclusions, reviewing amendments and exclusions.