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Socially responsible investment

FDC's exclusion list

During 2011, the Board of Directors of the FDC integrated a socially responsible investment policy into its investment strategy.

More precisely, the integration of such a policy has been put into practice at the end of 2011 through an exclusion from FDC's authorized investment universe of those companies that do not comply with the international standards and conventions ratified by the Grand Duchy of Luxembourg and covering the fields of environment, social responsibility and solidarity as well as institutional responsibility, with particular regard to human rights and employment legislation.

The Board of Directors of the FDC therefore mandated the company GES to analyse the investment universe of the FDC in order to identify the companies that do not comply with the aforementioned international conventions and standards.

Accordingly, GES included in its first report sent to the FDC and dated November 2011 a first list containing the names of the companies contravening these international conventions and standards. This list, to be revised every six months, was approved by the Board of Directors of the FDC and the portfolio managers have been instructed to exclude companies on the list with immediate effect and, if necessary, to sell any held security issued by one of the listed companies.

FDC's current exclusion list, as of 16 November 2016, includes 69 companies. With regard to the previous exclusion list:

  • company Finmeccanica is still excluded but under its new name Leonardo - Finmeccanica SPA;
  • companies Aerojet Rocketdyne, General Dynamics, L-3 Communications, Lockheed Martin and Orbital ATK are still excluded knowing that they have lost one of their two exclusion criteria;
  • companies Alstom, Industrial and Commercial Bank of China and Singapore Technologies Engineering have lost their exclusion status;
  • company Astra Agro Lestari does no longer appear on the list as the given company is no longer included in FDC's respective benchmark and thus no longer eligible for investment;
  • companies Adani Enterprises, Adani Ports and Special Economic Zone Limited, BHP Billiton, JBS SA, Vale SA and Volkswagen AG have been added.

The "ESG" label from LuxFLAG

Simultaneously and in connection with any request for proposals for the selection of portfolio managers, FDC has decided to include in its request for proposals questionnaires questions about the socially responsible investment policy or ESG policy pursued by the different tendering companies. In this context, it is noteworthy that a global equity sub-fund granted in 2012 is managed exclusively on the basis of ESG criteria, namely the sub-fund FDC SICAV Actions Monde - Actif 3 managed by NN Investment Partners. In this context, the given sub-fund is since October 2015 labelled with the ESG label from the Luxembourg Fund Labelling Agency (LuxFLAG).

LuxFLAG is an independent, non-profit-making association created in Luxembourg in July 2006 which aims to promote the raising of capital for responsible investment sectors by awarding a recognisable label to investment funds. The primary objective of the LuxFLAG ESG Label is to reassure investors that their assets are being invested by an investment fund incorporating ESG considerations throughout its investment process.