RSMR has rebranded its sustainable and responsible investing (SRI) ratings service and portfolios as simply “responsible” to better fit the changing environmental, social and governance investing landscape.
The firm launched its SRI rating service in 2012 but said it needed a refresh after monitoring the changes taking place within the industry over the past 18 months.
A press release announcing the change said: “Over time, a variety of acronyms have been used to cover the changing face of products and with no real consensus on formal definitions, it’s created confusion around the different approaches.
“To provide further clarity to the funds we rate, we’re rebranding our SRI rated funds as ‘Responsible’. Adapting our research and aligning ourselves with the evolution of the industry means that we’re able to assist advisers in achieving more mindful client conversations.”
RSMR’s Responsible rated funds fall into four categories:
– Sustainable: funds that select and include investments that responsibly contribute and benefit the global sustainable economy. This may include referencing the portfolio to one or more of the UN Sustainable Development Goals or the application of a screen.
– Impact: funds that can demonstrate that they are aligned to the Global Impact Investing Networks definition of impact. ‘Investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return.’
– Thematic: funds that use macro themes to identify long-term responsible structural growth trends.
– Ethical: funds that apply a screen, either positive, negative or both, that may be based on ethics or on a ‘best in sector’ approach. Each fund will have its own defined screen and may vary between provider.
The firm is also renaming its three SRI Managed Portfolios as Responsible Cautious, Responsible Balanced and Responsible Dynamic. All three will be constructed predominantly from RSMR Responsible rated funds.
RSMR director Ken Rayner said: “The interest in responsible investing has increased significantly in the last 18 months as both regulation and customer enquiries have generated a new demand for information. RSMR has been reviewing its approach and our re-launch takes place at an exciting time for the whole sector.
“We are keen to make sure we maintain our lead in providing high quality research and have built a new framework which will allow us to deliver a clearer understanding of the options available for advisers.”
