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At Columbia Threadneedle Investments we strive to be responsible stewards of our clients’ assets within a framework of good governance and transparency. As a manager of substantial global equities, fixed income and property assets and an active investor, we proactively seek to capture opportunities that help deliver sustainable growth and returns for our clients.
Being a responsible investor is integral to our business proposition and defines how we act in the marketplace. Core to our investment philosophy is the belief that effective stewardship benefits companies, investors and the economy as a whole. Well-governed companies are better positioned to manage the risks and challenges inherent in business and are better able to capture opportunities for growth.
Consistent with our commitment to being a responsible long-term investor and our duty to act in the best long-term interest of our clients, Columbia Threadneedle subscribes and is a signatory to the United Nations-backed Principles of Responsible Investment (PRI).
In the UK we are a signatory to the Stewardship Code.This capability and culture also allows us to innovate and deliver unique solutions for our clients. We regularly partner with clients to deliver tailored segregated mandates and have a history of delivering sustainable long term returns. We have expanded our capabilities with the launch of the UK Social Bond Fund in January 2014.
Principles of Responsible Investment (PRI)
The PRI frames our approach globally. Our high level implementation of the principles is outlined here and details of our regional implementation, policies and procedures can be found on our regional websites.
- We will incorporate Environmental, Social, Governance (ESG) issues into investment analysis and decision-making processes.We have an integrated approach to responsible investment and ESG research that is embedded within our investment approach, and is supported by our culture of collaboration, sharing of research and ideas, and robust debate. In developing our understanding of a business we take into account its approach to managing environmental, social and governance issues, as well as any controversies that may have arisen.In 2018 we launched a proprietary and innovative responsible investment (RI) ratings system that combines an assessment of a company’s financial stewardship with an analysis of how well it manages its material ESG risks (using the SASB framework). Combining both aspects into a single, forward-looking company rating from 1 ( strong) to 5 (weak), reflects our conviction that prudent management of financial and ESG factors is important to a company’s ability to create long-term, sustainable value. Utilising data science and cloud computing, the RI analytics and ratings add to our fundamental research, providing our global investment teams with a more robust and evidence based RI capability, with coverage across 5,500 global listed equities.
- We will be active owners and incorporate ESG issues into our ownership policies and practicesWe actively vote our shares globally and have a thorough internal dialogue as well as corporate dialogue globally. We follow regional voting principles and take into account local market practice.
- We will seek appropriate disclosure on ESG issues by the entities in which we investWe place substantial value on transparency by companies and encourage greater transparency in our dialogue around ESG performance.
- We will promote acceptance and implementation of the Principles within the investment industryWe actively participate in external forums and discussions where relevant and are actively involved with the PRI secretariat.
- We will work together to enhance our effectiveness in implementing the PrinciplesColumbia Threadneedle Investments is committed to meaningful collaboration with other investors in company dialogue and wider ESG related issues. We take into account consistency of purpose and conflict of interest policies.
- We will each report on our activities and progress towards implementing the PrinciplesColumbia Threadneedle Investments reports annually on our progress in responsible investment both to clients and to the PRI. Our annual EMEA PRI assessment report in our documents section below.
Responsible investment team
Our Responsible Investment (RI) capabilities were established in 1998 and our 14 full-time RI analysts, based in our London and Minneapolis offices, are now an integral part of our global research team, working across three principal areas of RI responsibility:
- Thematic Research: Seven dedicated analysts provide specialist RI research across a range of specific RI themes, supporting our fundamental analysts and our focused ESG and sustainable outcomes strategies.
- Stewardship and Voting: Six dedicated analysts undertake company engagement on RI matters, supporting the activities conducted by our fundamental researchers and portfolio managers.
- Policy: Our dedicated analyst is essential to the extensive engagement we have with industry regulators, government, and policymakers, as well as industry associations, networks, boards and codes including the PRI, IA, CMA and SASB.
We actively vote in over 50 markets globally both as an extension of our engagement and in signalling support or concerns about a company’s practices and proposals.
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Millions of people around the world rely on Columbia Threadneedle Investments to manage their money. We look after investments for individual investors, financial advisers and wealth managers, as well as insurance firms, pension funds and other institutions.
Global investment solutions
Client needs drive our Global Investment Solutions business. Our journey together starts with a commitment to understanding the client’s business, the outcomes they are trying to achieve, their specific challenges and the regulatory environment that they operate in.
As a leading global asset management group, Columbia Threadneedle Investments aims to deliver positive outcomes that meet the needs of our stakeholders and we commit to always act responsibly, transparently and in the best interests of those who trust us to manage their investments.