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Recognising that our clients have diverse responsible investment (RI) needs, we harness Man Group’s experience in quant, research, technology and data science to deliver sustainable investment solutions in line with their goals.
RI Integration
We believe that material risks can impact long-term value creation for the companies in which we invest, and we seek to manage financially material environment, social and governance factors alongside all other relevant investment risks.
Data
With over 675 quants and technologists and more than 35 years of experience in quantitative investing, we understand nuanced and non-standard environmental, social and governance datasets.
Stewardship
As stewards of our clients’ capital, we responsibly manage their assets to unlock long-term value.
Research
Quant, academic and thematic research underpins our approach to RI.
Education & advocacy
We are committed to promoting and raising awareness of RI within the firm and across the industry.
"At Man Group, our clients’ preferences are of the utmost importance to us. We aim to meet their diverse responsible investment needs by providing sustainable, data-driven investment solutions."
"At Man Group, our clients’ preferences are of the utmost importance to us. We aim to meet their diverse responsible investment needs by providing sustainable, data-driven investment solutions."
Our commitment to RI is a core aspect of our corporate strategy, both as a listed company and in the investment services we provide to our clients and beneficiaries. We manage US$62.6 billion in RI-integrated AUM as at 31 December 2024* on behalf of our clients.
As at 31 December 2024, $62.6 billion of Man’s total AUM incorporates ongoing consideration of ESG factors within the investment analysis and decision-making process with the aim to improve risk-adjusted returns.
To provide a consistent framework around Man Group’s calculation of ESG-integrated AUM, we base our calculation on the Global Sustainable Investment Alliance (‘GSIA’) categories and definitions. Man Group’s ESG-integrated AUM is based on the GSIA’s current ‘ESG Integration’ investment approach, which, following an update in 2023, is defined as the ‘ongoing consideration of ESG factors within an investment analysis and decision-making process with the aim to improve risk-adjusted returns’. In this context, the use of ESG factors for ESG integration may be less significant than other factors in the investment selection process. The ESG integration category is relevant and applicable to Man Group’s investment process and its use has been approved by our Responsible Investment Committee (‘RIC’).
Using the ESG Integration approach, our calculation methodology identifies all relevant funds and mandates for which explicit environment, social and governance criteria are used in asset selection (discretionary) or a dedicated environment, social and governance model is incorporated in the investment process (systematic).
More specifically:
- For single manager/strategy funds: if ESG factors are materially integrated into the investment strategy (e.g. ESG factors impact security selection1), then the entire assets of the fund will be accounted for as ESG AUM. In the case of Man Numeric, it will be relevant to the integration of Numeric’s proprietary ESG factor model2
- For ESG multi-strategy funds and/or mandates (i.e., strategies which are marketed as ESG strategies): we include all the relevant AUM
- For non-ESG multi-strategy funds and/or mandates: currently only the portion of a fund or mandate for which ESG is factored into the investment process is included3
- For third party multi-strategy managers: Solutions will seek to assess at the sub-strategy level for ESG-integrated AUM on the same basis. If Solutions is unable to get transparency or single sleeve allocation are not disclosed, those strategies will be assumed to not include ESG content
The calculation of Man Group’s ESG integrated AUM is undertaken by our Global Reporting team, reviewed by the RI team and relevant investment teams, and subject to formal oversight by multiple control functions. This rigorous process and the resulting ESG-integrated AUM figure are governed by the RIC.
We have used this approach consistently since we started publishing Man Group’s ESG-integrated AUM and while we believe we have a prudent framework for the calculation, we continue to monitor the development of best practice methodologies.
- For example: Article 8/ Article 9 Funds under the Sustainable Finance Disclosure Regulation or where the ESG factor is considered for every single security selection.
- Which currently can be as high as 70% but may be as low as 3% in terms of weight compared to the other models. For instances where the model weight is at the lower bound, it is still commensurate/proportional with other individual models used in the process.
- For example, some of our multi-strategy/multi-asset portfolios may only incorporate ESG factors in certain sleeves or asset classes. For such strategies/portfolios, we only include the portion of the strategies/portfolios for which we integrate ESG factors into the investment process.
A Framework for Real-World Decarbonization (Compass–FRWD)
In a collaboration between Man Group and the Columbia Center on Sustainable Investment, we researched how to close the climate investment gap and decarbonize the real economy through climate investing. Together, we developed the Climate Allocation Compass – A Framework for Real-World Decarbonization (Compass-FRWD) – a step-by-step guide to asset allocation across multiple, multi-asset portfolios. For the first time, Compass-FRWD offers allocators a clear roadmap for deliberate, dynamic and net-zero aligned investment in climate solutions.
We understand the importance of sound stewardship in managing investors’ capital, and our approach to RI ensures that our interests and values are closely aligned with those of our clients and shareholders.
Firm-level stewardship
Stewardship through the application of Man Group's Global Proxy Voting Policy and rigorous engagement. Firm-level stewardship leverages the Group's scale and aggregate ownership in securities to promote best practices and effect meaningful, positive outcomes.
Stakeholder-level stewardship
Man Group’s involvement in stakeholder initiatives and cooperation with companies, policymakers, reporting bodies, NGOs and industry peers. This enables us to collaborate with other organisations to share information, stay abreast of stewardship issues and to address financially material RI issues in line with our independent stewardship approach.
Fund-level stewardship
Stewardship at the sub-group level, particularly within our discretionary strategies. This is an integral part of our portfolio managers’ investment processes, helping to enhance shareholder value and preserve investors’ rights.
We are committed to our stewardship practices through engagement and voting.
The Man Group Global Proxy Voting Policy Summary uses the Glass Lewis standard policy as the base but applies a number of additional guidelines that target specific areas where we think higher standards should be promoted. For additional information associated with proxy voting please contact globalproxyvotingclientservices@man.com.
Our fund framework provides credibility, clarity and consistency in Man Group’s approach to RI across its range of funds and strategies. Broadly our funds fall into three categories:
Sustainable range
- Strategies for which environmental, social and governance factors are fundamental to the product design or investment objective
RI informed
- Strategies which incorporate some degree of RI analysis into investment decision making
Base standard
- Strategies that apply Man Group’s global banned weapons exclusions
Applying our data science and quant experience, we have built proprietary tools to visualise and contextualise the nuanced metrics we assess, supporting our clients in achieving their sustainable investment objectives.
ESG analytics tool
Embeds our proprietary ESG scores alongside third-party datasets and provides an innovative, standardised approach to managing environmental, social and governance risks, factors and opportunities.
GAIA (Global Active Issuer Assessment)
Provides insight into over 23,000 companies, giving investment teams a real-time view of the environmental, social and governance ratings of their portfolio holdings.
Engagement tool
Allows our investment and stewardship teams to review, record and monitor company engagements on RI-related matters.
A Sustainable Future: A responsible investment podcast
Jason Mitchell, Head of Responsible Investment Research, interviews policymakers, academics and industry leaders about the challenges facing sustainable finance.
Jason Mitchell, Head of Responsible Investment Research, interviews policymakers, academics and industry leaders about the challenges facing sustainable finance.
Our ESG governance framework incorporates committees and policies to implement and oversee all elements of our RI and corporate sustainability mandates.
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