Exclusions

We do not apply any negative screens across our investment platform. Given that exclusions are intended to provide alignment with values, Wellington has not taken such a stance to restrict the investment universe based on a single definition of values. This would contradict our no-CIO model and the ‘boutique of investment firms’ that we cherish. However, we do provide the option for clients to implement negative screening when they invest in separate accounts.

Clients with socially responsible investment (SRI) concerns may wish to integrate restrictions in their mandate guidelines, and we have assisted several clients in the development of investment “screens” or complete investment styles that seek to achieve specified investment goals while complying with the restrictions. These client SRI issues extend across a broad range of social concerns including tobacco, gambling, alcohol, weapons, pornography, labor issues, as well as specific countries like the Sudan.
The development of customized SRI guidelines is a lengthy and comprehensive process. Initially, dialogue with the client is essential in understanding, developing, and implementing their SRI concerns and related guidelines. We employ a third party vendor to assist us in creating the restriction universe for client-defined social restrictions. Based on this research, prohibited securities are coded into our compliance system which is integrated with our order entry systems to identify any attempted order in a restricted security. Guideline Monitoring monitors results across all client portfolios and assists in the resolution of any issues identified by the screening process.