- What does 'RI’ mean?
RI stands for Responsible Investment. Both are commonly used terms whereby investments are made only in companies whose business activities and standards of corporate governance enable concerned investors to align social and environmental considerations with their financial goals.
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- Is RI relevant to many people…or just a handful of idealists?
Growing interest in RIs reflects investor concerns. More and more investors actively seek to invest in companies whose products and services make a positive contribution to sustainability and conservation goals whilst avoiding investment in companies whose activities conflict with their beliefs and values.
By not taking RI considerations into account, investors may find themselves unwittingly financing, directly or indirectly, production of armaments such as land mines or products with proven health risks such as tobacco, supporting the exploitation of child labour, or encouraging the unsustainable use of natural resources or the destruction of habitats. RIs ensure that financial strategies and ethical beliefs are aligned.
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- Are some industries better than others in terms of RI?
Yes – in the sense that some industries make a positive contribution to sustainability and conservation through their products and services. Others may not do so directly but maintain high standards of corporate governance in terms of employment, environmental practice and other relevant considerations. Our goal is to select “best in class” investment opportunities in these categories. Some industries by their nature have a negative impact on the environment no matter how well run individual companies may be and we avoid investing in these sectors.
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- Which sectors does the Fund exclude?
We avoid investing in companies where 5% or more of the total turnover is derived from activities related to alcohol, tobacco, gambling, armaments, genetic engineering and production of nuclear power or fossil fuels, among others.
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- What is the financial objective of the Fund?
Our objective is long-term capital growth.
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- Is there a trade-off between financial performance and RI goals?
No. Investment targets are first of all analysed from a performance standpoint and must comply with stringent financial and business outlook criteria. Only then do we judge them in terms of RI criteria.
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- Why is the Fund not measured against an RI index?
We chose not to use an RI index for comparative purposes to demonstrate that the Fund’s financial performance is comparable to non-RI investments. In other words, we believe that the primary focus of the Fund should be financial return because this is why people invest. In our case, compliance with RI considerations is an added benefit at no cost.
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