Man Group introduces Responsible Investment Framework and Exclusions List
Man Group has launched the Man Group RI Fund Framework, a formalised structure that quantifies the degree of RI focus for all Man Group funds, and the Man Group RI Exclusions List, a proprietary list of sectors and companies ineligible for the company’s portfolios.
These developments follow the recent formalisation of Man Group’s RI team, which is overseen by Sandy Rattray (pictured), Chief Investment Officer of Man Group, with ongoing activity led by Steven Desmyter and Jason Mitchell as Co-Heads of Responsible Investment.
The new RI Fund Framework is designed to establish a baseline requirement of ESG standards, and to provide credibility, clarity and consistency in Man Group’s approach to RI across its range of funds. There will be three categories into which all funds will fall: the base standard; a standard for funds with a further level of RI integration; and a standard for RI-dedicated funds.
Under the new framework, Man Group has formalised its mandatory, firm-wide exclusion policy on ownership of positions in companies that participate in controversial arms and munitions across all of its funds. In addition, all Man Group funds will receive 100 per cent proxy voting, while funds that are RI-dedicated or have a certain level of RI integration will be subject to enhanced stewardship and engagement requirements.
Man Group is also introducing an RI Exclusions List, designating sectors that will be excluded from Man Group’s RI-integrated or RI-dedicated funds. The proprietary list of excluded sectors is in line with international standards and global consensus, and includes:
- Controversial weapons – companies involved in the production of anti-personnel mines, cluster munitions, chemical, biological weapons, depleted uranium weapons or nuclear weapons
- Tobacco – companies that are involved in the production of tobacco or are suppliers of significant components of cigarettes
- Production of coal and coal-based energy – companies where the production of coal or provision of coal-based energy represents more than 30 per cent of revenues
Man Group has also established an RI Exclusions Committee, which will focus on developing guidelines to direct the exclusions. The Committee will review and report any amendments and exclusions to Man Group’s Responsible Investment Committee.
Sandy Rattray, Chief Investment Officer, Man Group, says: “This is an important step for Man Group as we integrate responsible investing considerations into everything we do across the firm. 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.”
Jason Mitchell, Co-Head of Responsible Investment, Man Group, says: “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 greater clarity and transparency. 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.”