BMO Global Asset Management has added an ESG screening to its newly branded BMO Responsible Global Emerging Markets Equity fund, now available to European investors.
The strategy was previously known as the F&C Global Emerging Markets Portfolio.
The strategy is now similar to that of the F&C Responsible Emerging Markets Equity ESG fund launched in 2010.
The fund is managed by BMO Global Asset Management’s specialist EM boutique, LGM Investments.
Firms, whose stocks are picked in the portfolio, must show a clear link to one of following six ESG themes:
- Infrastructure for development: providing critical public and private infrastructure in transportation, electricity, water, housing and other sectors
- Financing the future: delivering financial services to underbanked and underleveraged economies
- Rise of the low-income consumer: supplying products and services to low and middle-income consumers as disposable income grows
- Human capital: supporting the provision of social services such as education and healthcare
- Access to new technologies: offering cutting edge technologies to enable sustainable development
- Energy for growth: fuelling the economy with efficient energy from both conventional and alternative sources
The fund is to invest in companies reaching a certain level of governance and sustainability standards, such as board balance, independence, transparency, disclosure and the protection of shareholder rights.
Other areas evaluated include environmental pollution, human rights and labour standards abuses, corruption and abuse of minority shareholders.
BMO Global Asset Management’s governance and sustainable investment (GSI) team will be responsible for screening the global emerging markets universe of securities according to the six ESG themes and evaluating company standards.
Jeff Chowdhry and Sam Mahtani, portfolio managers at LGM Investments, make the final investment decisions.