The parent companies of the asset managers listed on The Big Exchange (TBE) range from small ‘boutique’ firms owned by employees to leading international banking groups.
This article does not constitute investment advice. If you are unsure whether an investment is suitable for your circumstances, you should contact an independent financial advisor.
The parent companies of the asset managers listed on The Big Exchange (TBE) range from small ‘boutique’ firms owned by employees to leading international banking groups.
We understand that when seeking investments which align with their values some investors focus on the impact made by companies held within a particular fund whilst others consider the activities of the parent firm, or other products from the same asset manager.
For those customers that would like a bit more detail, we have put the table below together to show all the firms currently on the Big Exchange and their parent companies as of 30 April 2024.
It is important to note that asset managers usually have their own investment governance structures and operate independently from their parent companies when setting out their stance on fossil fuels.
In fact, asset managers typically employ firm-wide ESG (Environmental, Social & Governance) criteria to ensure that all companies held meet high standards within their industries. They are also likely to engage regularly and vote at company AGMs (Annual General meeting).
Furthermore, individual funds will have their own policies on what is acceptable exposure (both direct and indirect), and this will determine where your money is invested.
In relation to the information in the table above, parent banks may lend money to companies involved in fossil fuel exploration and production. This could have been committed some time ago to long-standing projects and it may be the intention to wind down exposure as loans mature then redirect funding to the development of renewables. Most banks set out their own net zero targets and policies.
We know that avoiding fossil fuels is an important consideration for many of our investors. One way we assist with this is by providing a ‘fossil fuel free’ filter1, to screen companies within the fund. If you want to know more about why a particular company is included in a portfolio, do ask us and we can check the fund holdings, do some further digging, and approach the fund manager for an explanation.
Less well understood is the transition away from fossil fuels. We also offer funds that support a ‘just transition’ from black to green, taking a pragmatic approach to working with those companies that are transitioning. This means making sure that they have measurable targets and tangible results before and during investment. You can read more about this topic here.
It’s your decision of course as to where to draw the line. For example, many leading suppliers of renewable energy still have legacy fossil operations and even companies with high positive impact products and services may use energy which is not 100% green, or transport powered by fossil fuels. In such cases it may be worth examining their intentions to achieve net zero (sustainability/impact reports are a good place to find plans laid out).
1 Fossil free filter
Disclaimer:
The Big Exchange (TBE) uses a rigorous process, a range of information and proprietary research to determine whether a fund is fossil free.
Our first check screens using a third-party independent assessment (which all funds on the platform must have) to identify whether there are any fossil holdings. Secondly, all fund managers must complete a questionnaire describing in detail their policy and providing a full list of their holdings (not just the top 10) on a range of controversies including fossil. Thirdly, our staff review the portfolio holdings before onboarding and at least annually. All information is correct as at the time of the last assessment.
Please remember that when investing, making money is not guaranteed and your capital is at risk. The value of your fund can go down as well as up. Tax treatment depends on an individual’s circumstances and may be subject to change.
This article does not constitute investment advice. If you are unsure whether an investment is suitable for your circumstances, you should contact an independent financial advisor.
The Big Exchange (TBF) Limited is a wholly owned subsidiary of The Big Exchange Limited. The Big Exchange (TBF) Limited is an Appointed Representative of Resolution Compliance Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 574048). (CaRA: 8619 )
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