- Investment Expertise
We are committed to supporting the insurance sector and have a dedicated insurance solutions team.
We’re finding that an increasing number of institutional, pension fund and high-net-worth investors are turning to private equity in order to enhance their portfolio performance.
- Our insight
The House View process provides a consistent macroeconomic framework to analysing global financial markets.
Our Head of Global Strategy, Andrew Milligan, introduces the latest edition of Global Outlook, a summary of our House View.
Standard Life Investments’ Global Strategy team provide regular analysis of the key economic data that has been influencing financial markets.
Our global strategists combine valuable experience, thorough research and analysis to tackle major issues of the moment.
Governance and stewardship is about making sure that companies’ operational processes and policies are robust and responsible.
- How we discharge our stewardship responsibilities
- Our policy for managing conflicts of interests
- How we monitor our investee companies
- Our guidelines for escalating engagement
- Our willingness to act collectively with other investors
- Our policy on voting and voting disclosure
- How we report on stewardship to our clients
We recognise the importance of transparency and accountability when it comes to our stewardship responsibilities. To this end, we have published an annual review of our governance and stewardship activities, which provides an account of how we have fulfilled our responsibilities. Please select the link below to view the 2015 annual review.2015 annual review
- Responsible Investment
We recognise that the management of environmental and social responsibilities is subject to many factors, and take into account the particular circumstances, industries and locations in which the companies operate.
We've produced guidelines on responsible investment to explain how we evaluate the environmental and social policies of the companies in which we are (or might be) an investor.
Our experience in operating across many different investment cycles and markets provides us with the context to manage change. Throughout these cycles, we have the people, philosophy and proficiency of process to plot what we believe is the right course for our clients’ assets.
- Secure content
Our engagement approach
In support of our ‘focus on change’ investment philosophy, we engage actively and regularly with the companies in which we are, or may become, a shareholder. Our style of active engagement is designed to avoid, as much as possible, surprises that have the potential to change the fundamental standing, strategy or dynamics of the companies in which we invest. Our position as a leading asset manager allows us to build robust relationships with investee companies.
In our research and analysis of environmental, social and governance (ESG) issues, we identify any risks or opportunities we may wish to discuss with companies. We prioritise engagement with companies where there are serious concerns, where the company rates poorly on our sustainability rating tool and where we have a significant holding.
We set engagement objectives according to the circumstances of each company. The selection of investee companies and the results of our engagement are informed by and benefit our entire investment process. Our objectives may include the following: learning more about company strategy and performance; appraising company management; emphasising the importance of best practice on ESG issues and exchanging views.
We evaluate the success of many engagements at the time of the engagement. However, some engagements may require that a company take a number of actions and the outcome will not be immediate. In such cases, it may be appropriate to set an engagement mile stone, which allows us to assess what steps the company has taken throughout the engagement process. As a result of this process, we may meet with an investee company on a number of occasions on a particular issue.
Using external data providers and our own internal measurement system, we rate how companies approach ESG issues. We consider a company’s rating to enable the identification of both leaders and laggards within different sectors. This process is subject to on-going assessment and revision, as new sources of ESG data becomes available, and our internal processes evolve.
Below is an outline of our formal process which drives our engagement approach. Companies are identified using two broad areas including an example of company selection:
- Financial Exposure: Top holdings by value, in both equity and debt
- Weight of Influence: Significant percentage of holdings
- Client Drive: Commitment to individual client mandates and concerns, including those of our fund managers and analysts
Performance Based Targets
- Thematic Engagement: Focus on change philosophy, identifying trends and engaging with companies exposed to those trends
- Poor Performers: UN convention breaches, breaches of the Principles of the UN Global Compact, poor sustainability rating
- Event Driven Engagement: Engagement based upon significant market and ESG events impacting upon investee companies
|Overarching Criteria||Structured Targets||Performance Based Targets|
|Specific Engagement Criteria||Total
|Example Investee Company||X||X||X|
Our approach to engagement is to use our expertise and influence to encourage standards of best practice in companies' management of environmental and social risks and opportunities. This often involves long term engagement with investee companies focusing upon safeguarding the long term value of our clients’ investments.