McInroy & Wood

Mcinroy & Wood - Ethical Principles In Practice

MW conducts all its affairs on the basis of a comprehensive set of ethical principles. These principles govern both the conduct of MW's dealings with its clients, and the investments it makes on behalf of its clients. All too often, investment firms lay claim to similar principles, but apply them only selectively or as an adjunct to their promotional efforts.

The Professional Approach

MW regards itself as bound by the same ethical principles in the conduct of its own affairs as it seeks to identify and promote in other companies in which it may invest. Our approach is based on a professional culture which means that we aim, above all, to form firm and enduring relationships with each of our clients and their interests always come first. The prior emphasis on the interests of clients is evidenced in a number of ways.

For example, we charge only a simple standard fee and accept no commissions or other forms of remuneration which could conflict with our primary obligation to our clients.  We offer no sales or commission charges to intermediaries to induce them to direct clients into our funds. We rely primarily on the goodwill generated by our clients, rather than on our promotional efforts, to expand our practice.

MW is wholly owned by its directors and staff and is not an appendix to a large financial institution which means that its professional culture can be protected and sustained free of external pressures.

Staff are given every encouragement to learn and to develop their careers. We sometimes take on external students looking for work experience and help them to find jobs.

MW and its directors support the local community by making substantial donations to charitable organisations and by supporting local businesses and encouraging staff to do likewise. MW regularly undertakes a group Christmas project within the community.

The Directors and staff of MW are actively involved in a wide range of charitable interests. Victor Wood was a member of the editorial board of a leading ethical financial journal, published in conjunction with Edinburgh University and the Church of Scotland. He has contributed to 'Life & Work' (magazine of the Church of Scotland), and occasional articles on ethical topics to various other publications.

Victor has also served as an adviser to the Carberry Trust which is a local ecumenical retreat centre offering a haven for retreat from a busy world. It is open to individuals and companies' employees across all religions and denominations.

Ethical Investing - a positive approach

As regards its investment activities on behalf of clients, MW shares the concern of many about the impact of corporate decisions and culture on the community and undertakes an active and continuing review of ethical issues arising from the conduct of companies.

So far as companies are concerned, we are inclined to think that many of the boundaries conventionally drawn by ethical investors are difficult to define and hard to sustain in practice, for example

We believe that more can be achieved for ethical causes by positive support for the way an exemplary company conducts itself than by negative or restrictive investment policies which tend to leave the target untouched. Tobacco companies, however, are viewed as a special case, and MW does not buy shares in them.

MW regards an ethically principled approach to its own affairs and to its investment allocations as desirable in itself. But we also believe that such an approach, by helping to promote and sustain an economic culture which all stakeholders in society can accept, will help to create an environment in which our own practice can grow and prosper.

Reviewed April 2005