Ethical Screening

At King & Shaxson we understand each client has a different opinion on what ethical investing is, emphasising the necessity to develop an individualistic approach. Our screening process aims to identify what companies or funds have exposure to, ensuring we direct your client’s funds to areas of interest, as well as avoiding exposure to sectors or companies that are negatively contributing to society or the world we live in.

The process combines a quantitative and qualitative approach, bringing together third party ESG research with our own internal research. This rigorous approach leaves no stone unturned.

Screening: Personal Discretionary Service

With our personal discretionary management service we don’t tell our clients what is ethical, we allow them to tell us, meaning we have a more human approach to investing with our clients via their financial adviser. Our extensive value-based questionnaire allows us to gain a strong understanding of the investments mission as well as an understanding of the client’s motives.

This enables our fund managers to build a portfolio proposal which then enables active communication between fund manager, adviser and end client. The investment pack includes the fund manager’s rationale, allowing the client to fully understand how their ethical stance has been reflected in their portfolio.

Personal Discretionary: What opportunities exist?

  • Fixed income: social housing bonds, microfinance, off grid renewable finance, African leasing and railway bonds
  • Property: Social housing, private sector rental and medical properties
  • Equity: renewable energy, healthcare, environment, public transport, infrastructure, food and housing
  • Cash: ready to be utilised or increased based on market conditions and clients risk profile

The above thematic investments, by their very nature, are largely engaged in positive social or environmental activities. This leaves the door open to non-thematic investments which although they have no formal ethical criteria, are deemed to exhibit the best ethical practices within their industry.

Screening: Platform Model Portfolios

With our model portfolios, our ethical approach aims to meet the majority of ethical investors’ concerns, with the investment decision involving a positive as well as a negative screen. Our Under the bonnet approach means we go beyond the fund label and scrutinise the fund holdings. Areas with significant involvement in armaments, tobacco, human rights violations, nuclear, oil & gas and poor environmental management are avoided in what is called a negative screen. Meanwhile, companies that are perceived to have a direct positive impact on social and environmental issues are included in the positive screen.

Using a mixture of the two types of screening allows our fund managers to consider all types of firms during the investment decision.

Is your client already invested in a platform product or other discretionary service? Make the most of King & Shaxson’s ethical screening service to understand how ethical their portfolio is.