Responsible Investment is an investment approach that aims to incorporate risk factors associated with environmental, social and governance (ESG) issues into investment decisions to generate sustainable, long-term returns and better manage risk.
In evaluating investment opportunities, Funds SA’s appointed investment managers consider the many risks inherent in each investment. In most cases this includes ESG factors, where relevant, as managers acknowledge that such issues have the potential to impact on performance.
In our Socially Responsible Fund, underlying fund managers actively incorporate the consideration of environmental, social and governance factors in their investment decisions and also avoid companies operating in areas of high negative social impact. The fund invests in line with the socially responsible investment criteria established by the product provider.
Funds SA’s managers are active and diligent representatives of our stakeholders' interests as shareholders in companies in the portfolio. Many of Funds SA’s investment managers adopt a positive engagement approach, working directly with the management of companies in which we invest to achieve any necessary change to improve the financial performance and risk management of the company.
All managers are active in exercising their right to vote at general meetings of companies in which Funds SA is invested. The managers’ guiding principle is to vote in the best financial interest of stakeholders on the numerous issues raised at general meetings of companies.