SRI process

At SWIP, we believe that to achieve our aim of obtaining the best returns for clients, it’s crucial to consider a number of factors that influence performance. One of these is Socially Responsible Investment (SRI) issues.

The willingness and ability of companies to adopt the highest standards of social responsibility is increasingly important to the long-term growth of their businesses. If we consider that a company’s social, environmental or ethical record will adversely affect its financial performance and result in poor returns, then we will not hold that stock in our portfolios.

Strategy	Objective
Socially Responsible Investing	Overlaying the equity analysis process, SWIP’s SRI screening takes into account a number of United Nations and International Labour Organisation (ILO) declarations, covenants and conventions. These include: - the Universal Declaration of Human Rights - the Conventions on the Rights of the Child - international environmental conventions - International Labour Organisation (ILO) core conventions - conventions against bribery and corruption.
Islamic or Shariah-compliant Investing	Islamic finance has grown rapidly in popularity as more people seek Shariah-compliant investment options. SWIP recognises this growing need. We were one of the first UK-based investment houses to offer Shariah-compliant investments covering both global and emerging markets equities. Islamic investing refers to a series of religious principles applied to equity asset management, and the resulting suite of products that comply with these principles. While most of these principles are manifested as investment constraints, Shariah – or Islamic law – also directly advocates investment in profitable, well-managed corporations. To comply with Islamic law, SWIP has appointed a Shariah advisory board of Islamic scholars, who provide advice on complying with Islamic Investment Guidelines. We also employ a Shariah stock-screening service to help identify stocks that comply with these guidelines. The ethical standards are fairly straightforward and include avoiding companies involved in the following: - gambling - tobacco - the production or sale of pork products - the production of intoxicating liquor - arms manufacturing - cinema, and all media that contain pornographic material such as broadcasting, videos and DVDs. The standards on commercial transactions are more complicated. Investment in non-Islamically structured banking, finance, investment or life insurance business is prohibited. Since most modern companies perform interest-bearing transactions – earning interest on cash deposits, for example, or paying interest on debts and debentures – Shariah scholars recognise the need for a compromise, and have created investment constraints that screen out equities whose involvement in prohibited commercial transactions exceeds a certain threshold.

Strategy

Objective

Socially Responsible Investing

Overlaying the equity analysis process, SWIP’s SRI screening takes into account a number of United Nations and International Labour Organisation (ILO) declarations, covenants and conventions. These include:

- the Universal Declaration of Human Rights
- the Conventions on the Rights of the Child
- international environmental conventions
- International Labour Organisation (ILO) core conventions
- conventions against bribery and corruption.

Islamic or Shariah-compliant Investing

Islamic finance has grown rapidly in popularity as more people seek Shariah-compliant investment options. SWIP recognises this growing need. We were one of the first UK-based investment houses to offer Shariah-compliant investments covering both global and emerging markets equities.

Islamic investing refers to a series of religious principles applied to equity asset management, and the resulting suite of products that comply with these principles. While most of these principles are manifested as investment constraints, Shariah – or Islamic law – also directly advocates investment in profitable, well-managed corporations.

To comply with Islamic law, SWIP has appointed a Shariah advisory board of Islamic scholars, who provide advice on complying with Islamic Investment Guidelines. We also employ a Shariah stock-screening service to help identify stocks that comply with these guidelines. The ethical standards are fairly straightforward and include avoiding companies involved in the following:

- gambling
- tobacco
- the production or sale of pork products
- the production of intoxicating liquor
- arms manufacturing
- cinema, and all media that contain pornographic material such as broadcasting, videos and DVDs.

The standards on commercial transactions are more complicated. Investment in non-Islamically structured banking, finance, investment or life insurance business is prohibited. Since most modern companies perform interest-bearing transactions – earning interest on cash deposits, for example, or paying interest on debts and debentures – Shariah scholars recognise the need for a compromise, and have created investment constraints that screen out equities whose involvement in prohibited commercial transactions exceeds a certain threshold.

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