Ethical Screening Policy
Our ethical screening process evaluates the effects that certain companies’ activities, products and services can have on the environment and society at large. We exclude companies based on the following criteria:
Provide animal testing services or manufacture or sell animal-tested cosmetics, household products or pharmaceuticals.
Have any involvement in intensive farming.
Operate abattoirs or slaughterhouse facilities.
Are producers or retailers of meat, poultry, fish or dairy products or slaughterhouse bi-products.
Manufacture armaments, nuclear weapons or associated strategic products.
Provide critical services to, or own or operate, nuclear facilities.
Are involved in activities which are commonly held to be environmentally unsound – specifically manufacturers of PVC, Ozone Depleting Chemicals and hazardous pesticides.
Are in breach of internationally recognised conventions on biodiversity and companies in energy intensive industries which are not tackling the issue of climate change.
Have made political donations of more than £25,000 in the last year.
Have patented genes
Have investments in betting shops, casinos or amusement arcades accounting for more than 10% of their total business.
Derive more than 10% of their total business through involvement in brewing, distillation or sale of alcoholic drinks.
Derive more than 10% of their business from the growing, processing or sale of tobacco products.
Provide adult entertainment services.
Are corporate or international banks with exposure to large corporate or Third World debt.
Operate in countries with poor human rights records, and which have no established management policies on human rights issues.
At GM Trend we embrace sustainability as a corporate objective and it is central to our strategy and culture. This ensures that we aspire to meet the same standards for our own business as we demand of the companies in which we invest.
As active investors we believe it is our responsibility to encourage companies to maximise investment returns through good governance, including respect for society and the environment. As a significant shareholder in many companies, we are well-placed to actively promote best-practice in environmental, social and governance (ESG) matters.
Our investment managers and ESG Research team work together to monitor and engage with the companies in which we invest. This activity covers all asset classes, including equities, fixed income and property.
We believe that our commitment to ESG integration brings three main benefits for our clients:
Deepens our Understanding
Our focus on ESG means we better understand the environments in which companies operate. This helps us to quantify risks and opportunities.
Strengthens our conviction
GM Trend is an active investment manager with a fundamental, research-driven approach. Our ESG analysis supports the management of concentrated, high-conviction portfolios.
Promotes a Long-Term
focusEvidence shows that companies which rank among the leaders in governance and sustainability are more likely to outperform as investments over the long term. Integrating ESG factors in our research helps us to avoid short-term distractions and stay focused on the long-term prospects for companies and sectors.