The Old Mutual MSCI World Selection Index Fund offers you the opportunity to invest in leading global companies that are committed to high Environmental, Social and Governance (ESG) standards. This fund is designed for forward-thinking investors who want to align their financial goals with their values, without compromising on the potential for long-term capital growth. By choosing the Old Mutual MSCI World Selection Index Fund, you are not just investing in the stock market; you are investing in a more sustainable and equitable future for all.
Our rigorous three-step ESG screening process
We begin by applying the MSCI ESG Business Involvement Screening Research (BISR) to identify and exclude companies involved in business activities that have a significant negative impact on our society and environment. This means your investment will not be supporting companies engaged in things like thermal coal, fossil fuel extraction, and controversial weapons, etc.
We then use the MSCI ESG Controversies assessment to evaluate a company's involvement in any major ESG-related controversies. This tool scrutinises how well companies adhere to vital international principles, including the UN Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, as well as the UN Global Compact. Companies are assigned a score from 0 to 10, with a higher score indicating fewer controversies. Recent actual examples include major coastal oil spills, huge data encryption breaches and collapse of a mining company constructed dam wall which caused widespread flooding.
The final step is a comprehensive analysis of the remaining companies’ ESG performance compared to their respective industry peers. MSCI’s in-depth ESG rating system, which ranges from 'AAA' (leader) to 'CCC' (laggard), pinpoints the companies that are most effectively managing their ESG responsibilities.
The MSCI rating analysis that underpins our fund assesses thousands of data points across 35 key ESG issues. These issues are weighted based on their potential impact and the time horizon of the associated risks and opportunities. Importantly, all companies in the index are rigorously evaluated on their Corporate Governance and Corporate Behaviour, ensuring a foundation of ethical leadership and accountability.
By choosing the Old Mutual MSCI World Selection Index Fund, you are supporting a global portfolio of companies that are leading the way in sustainability and ethical business practices.
