UK - State Street Global Advisors and Friends Ivory & Sime (FIS) have announced a strategic alliance to provide index-tracking funds with a socially responsible investment (SRI) overlay.
These funds will allow institutional investors to pursue social, environmental and ethical objectives.
FIS’s Responsible Engagement Overlay (REO) programme will be applied to index funds, allowing SSGA’s clients to participate in the SRI overlay across its UK and international fund range.
With REO, FIS’s SRI team engages with companies in which its clients invest, encouraging them towards best practice management of social, environmental and ethical issues, when there is a business case for doing so.
REO was introduced by FIS in preparation for the introduction of Pensions Act changes which came into force July 2000 and which require pension fund trustees to state their policy on how social, environment and ethical issues are taken into account in the management of their pension assets.
The alliance follows SSGA’s acquisition of Gartmore’s passive equity business.
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