ABSTRACT
The Socially Responsible Investment (SRI) funds were first launched on to the retail investment market in the UK two important shifts have taken place in the way that they are operated. These funds were screened in order to ensure that no investments were made in companies which operated in sectors that were the subject of ethical concerns, such as, the publication of pornography. In some ways the shift to greater engagement is an obvious step for SRI funds to take because improvements in social, environmental and ethical performance can frequently have a beneficial effect upon a company's bottom line. At Jupiter Asset Management the SRI funds only engage on issues where efforts to influence are expected to result in financial as well as environmental benefits. Identifying such issues requires a detailed understanding of the company in question. Hence decisions on where and when to engage are only made after our in-house SRI unit has consulted with the SRI fund managers.
