major investment manager offers SRI to its clientsNovember 2001
One of the world’s largest investment management firms, State Street Global Advisors (SSgA), has formed a ‘strategic alliance’ with the London-based SRI specialists Friends Ivory & Sime to offer clients a socially responsible investment service.
US-based SSgA will use FIS’s Responsible Engagement Overlay system across its UK and international funds for clients who want to take greater account of SRI issues.
Reo, developed by FIS two years ago, allows institutional investors to hold shares in any company, but commits them to ‘engage’ with the companies to persuade them to behave in a more socially responsible manner. FIS monitors the environmental and social performance of companies and holds regular meetings with their senior executives to raise concerns it has identified.
Labour standards, human rights and sustainable development are among issues on which FIS has engaged with companies using Reo.
SSgA, which manages £501billion ($727bn) for institutional and individual investors throughout the world, said it expected to see ‘considerable interest’ in the new service.
One of its target markets will be UK pension funds, many of which have altered their statements of investment principles to take account of SRI in the wake of the country’s pensions disclosure regulation, enacted last year.
FIS has £37.4bn of assets under management, of which £21bn is invested along socially responsible lines, and is the UK’s longest-established SRI manager.
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