What is Responsible Investing?To us, responsible investing means considering environmental, social and governance (ESG) issues when making investment decisions. It also means being responsible stewards of our clients’ money, which means actively engaging with companies around ESG issues, and voting on company resolutions (proxy voting). This helps to ensure that companies have sound governance practices, good labour practices and manage their impact on the environment and local communities.
We have the following funds available to investors:
Old Mutual MSCI Emerging Markets ESG Index Feeder Fund: a low-cost index fund that aims to achieve long-term capital growth by owning a basket of shares with high relative ESG ratings across emerging markets.
Old Mutual MSCI World ESG Index Feeder Fund: a low-cost index fund that aims to achieve long-term capital growth by owning a basket of shares with high relative ESG scores across developed markets.
Old Mutual ESG Equity Fund: a South African equity fund that aims to achieve long-term capital growth by gaining exposure to companies with a superior ESG score relative to their peers. The fund will target a lower carbon footprint and a higher ESG profile relative to its benchmark.
Environmental – looks at the effects of issues such as climate change, pollution, food security and water scarcity.
Social – considers socio-economic issues such as impacts on the community, inequality as well as health and safety.
Governance – focusses on how companies are constituted, the depth of experience on the board, levels of diversity and independence.
To analyse the future returns of a company we need to understand how much exposure it has to these three factors and additionally how well it is placed to generate income from providing solutions to these problems.