Article date: 31 July 2006
Morley Fund Management has been ranked the number one fundmanager for its understanding of Socially Responsible Investing(SRI) and Extra-Financial Issues in the latest Thomson Extel SRIand Extra-Financial Survey released last week.
Thomson, in association with UKSIF (the UK Social InvestmentForum), asked buyside and sellside practitioners for their views onSRI trends and developments and on the quality of brokerageservices provided to them.
The survey highlighted that while SRI and SRI research continues togrow, investors are frustrated with analysts and brokers whocontinue to see SRI as a separate discipline.
This attitude is contrary to a trend seen by Morley’s chiefinvestment officer Katherine Garrett-Cox of more institutionalinvestors requiring SRI to be integrated into research andanalysis.
“Some institutional investors are asking for universallyaccepted SRI principles to be used when managing their portfolios.They want us to not only maximise profit but also to ensure thelong term sustainability of the portfolio and the companies weinvest in.
“They do not want to have excessive reputation risk orfinancial risk. So we are asked to take into account social andenvironmental issues when making our investment decisions,”she said.
The survey also highlighted thatinvestors are not just looking to allocate a portion of theirinvestments specifically to SRI funds but are looking morebroadly for environmental, social and governance (ESG) issues to befurther integrated into mainstream research and otherportfolios.
Morley’s SRI analyst Harriet Parker said that ESG issues areimportant to mainstream investors as they do have a material impacton long term shareholder value.
“We are increasingly using sell-side research houses thatproduce quality work integrating ESG issues into their researchbecause we believe ESG issues have an impact on stock valuation,business performance and financial value.
“We have also voluntarily signed up to UN Principles ofResponsible Investment (PRI) which require investors to take anactive role in promoting sustainable development,” shesaid.
The survey took place between March and June this year and covereda total of 124 buyside firms and 16 sellside firms throughout theUnited Kingdom and Europe.
Firms within the Morley group of companies manage £155 billion with£900 million in SRI assets*.
*as at 31May, 2006
For more information contact:
Telephone: 020 78098125
Notes to editors:
Morley Fund Management
Morley Fund ManagementLimited is the UK-based asset management business of Aviva plc.Firms within the Morley group of companies manage £155bn fromoffices around the world as at 31 May 2006.
Morley manages both institutional and retail funds under the Morleybrand. It also acts as investment manager for a range of retailinvestment funds, marketed in the UK under the Norwich Union brand,and international funds marketed under the Aviva Funds brand.
- Property Fund Manager of the Year, Pensions Management Awards2006
- Best Commitment to Raising Standards of Trustee Education,Engaged Investor Awards 2006
- Property Fund Manager of the Year, Property Week Awards2006
- SRI Provider of the Year, Global Pensions 2006
- Central European Property Awards 2005 - Outstanding Company ofthe Year & Investor of the Year
- UK Pensions Awards 2005 – Property Manager of theYear
- Property Week Awards 2004 – Best Property FundManager
- Pensions Management Provider Awards 2003 – Best PropertyFund Manager
- Fund Manager of the Year - Pensions Week Awards 2002
- Specialist Manager of the Year - UK Pensions Awards 2002
Further information about Morley Fund Management can be found atwww.morleyfm.com