Europe

Eurosif Launches Finalised Transparency Guidelines for the Retail SRI Sector

Eurosif, the European Social Investment Forum, has finalised the Transparency Guidelines for the retail SRI financial sector to maintain and increase consumer confidence. The European effort is the result of a multi-stakeholder consultation that incorporated the views of the financial services community, research groups, NGO’s, trade unions and others.

Signatories of the guidelines will have up to six months to implement them and the option to choose the media they wish in order to publish their responses. Signatories are to be open and honest and disclose accurate, adequate and timely information to enable stakeholders, in particular consumers, to understand the SRI policies and practices related to the fund. Verification of the results will be decided by Social Investment Forums at the National level and will range from self-policing to third party verification.

Commenting on the Guidelines, Executive Director for Eurosif, Matt Christensen said, “The Eurosif Retail Guidelines are an innovative means for asset managers to show interested investors how they create and manage an SRI fund. The Dutch SIF, VBDO, did an excellent job in starting this effort in 2002 and Eurosif has now broadened it to include all of Europe. The Guidelines should not only help with the continuing professionalisation of the SRI sector, but also serve as a model for the financial community in Europe and abroad. I expect to see this initiative to feed similar efforts in other countries over time.”

Italy

Tax Breaks Projected for Ethical Funds

The Italian parliament has approved a bill to implement tax breaks for "ethical funds". The Ministry of Economy now has to define what an "ethical fund" is and the level of tax advantage granted. The Italian SIF is planning to put the Retail Transparency Guidelines forward to the treasury so that they could be used as a framework. The decision (a decree) is expected before August 2005.

USA

Study: "Mutual Funds, Proxy Voting, and Fiduciary Responsibility: How Do Funds Rate on Voting Their Proxies and Disclosure Practices?"

This study by the Social Investment Forum Foundation shows that SRI mutual funds are tougher on traditional corporate governance resolutions and on social/environmental proxy issues than ''conventional'' mutual funds.

The report analysed the U.S. mutual fund voting patterns that are now discernible as a result of the first 12 months of mandatory proxy disclosure, a requirement that was strenuously opposed by most of the mutual fund industry. For the full study, visit the Social Investment Forum website

Global

Survey by Mercer Shows that SRI Practices are Becoming Mainstream

In late 2004, Mercer Investment Consulting conducted a survey of investment managers worldwide, capturing their predictions of if/when SRI practices (screening/engagement/integration of social and environmental factors) will become mainstream. Covering 190 investment managers, the survey found that, on average, investment managers are becoming more convinced that the adoption of SRI practices and strategies will become commonplace.

"We see a range of investor approaches to SRI across regions," said Jane Ambachtsheer, Mercer IC's global head of SRI. "And although managers' views do vary, it is interesting to note that nearly all predict that SRI practices will become mainstream".