Answers to self test questions
Introduction
Answer: Social, environmental or ethical responsible investment criteria.
Step 1
Answer: Occupational and stakeholder pensions must provide a SIP.
Step 2
Answer: Affecting the variety of plant and/or animal life. Company activities can do this in a positive or negative way.
Step 3
Answer: Positive screening or support.
Step 4
Answer: Fund managers focus on the longer term views of trends that conventional analysts have typically ignored in their company valuations: climate change, human rights and brand value. A specialist focus on particular sectors or technologies could lead to outperformance, though possibly at the cost of higher risk. Corporate governance is often an important factor in corporate success or failure.
Step 5
Answer: Typically defence, oil and gas, pharmaceuticals and perhaps financial services.
Acknowledgements
This learning course, produced by the UK Social Investment Forum (UKSIF), has been made possible through generous funding from:
It draws extensively on material from 'Investing Responsibly: A Toolkit for Financial Advisers', also produced by UKSIF, which was kindly funded by Friends Provident, Insight Investment, Jupiter Asset Management, Morley Fund Management and Co-operative Insurance Society with additional financial and/or technical input from Ethical Investment Research Service Foundation (EIRIS), Ethical Investors Group, HBOS Foundation, Henderson Global Investors and Synaptic Systems.