Socially Responsible Investing
If you want to invest with social responsibility in mind the options in the market can be limited.
QuayStreet offers a socially responsible investment fund, the QuayStreet Socially Responsible Investment Fund, which seeks a balance between the financial and the socially responsible performances of an investment.
The QuayStreet Socially Responsible Investment Fund invests in a diversified portfolio with a balance between income and growth assets, deemed to be environmentally and socially sustainable, whilst still applying our traditional portfolio investment criteria. The investment objective is to provide a level of return consistent with the target asset allocation and risk profile of the fund.
How investors use the QuayStreet Socially Responsible Investment Fund
- Larger investors can use this fund to gain exposure to responsible investments as a complement to a larger portfolio.
- Smaller investors can use the fund, as socially responsible cornerstone of their portfolio; and complement this with direct investments as appropriate. This provides smaller investors with a well-diversified socially responsible base portfolio.
Socially Responsible Investment Policy
The QuayStreet Socially Responsible Investment Fund adheres to a Socially Responsible Investing Policy and screening process.
Our SRI process is conducted by assessing the type of business activity a company is involved in and its performance or impact on Environmental Social and Governance (ESG) factors. Our view is that a long term holding of high performing ESG companies should translate into relative outperformance as the trend to regulate, increase efficiency and promote sustainability and eradicate corruption continues to endure.
We would like to stress the SRI process, entailing screening and research of investment suitability, is conducted alongside our traditional investment methodology. Fundamental analysis, asset allocation and valuation remain the primary drivers of portfolio construction and implementation.
QuayStreet Investment Process
Traditional investment decision making applied to portfolio construction and implementation can typically be separated into three steps:
Our approach to SRI adds two steps of analysis to our traditional investment decision making process as outlined in the flow chart below:
*In certain situations, QuayStreet may invest in Collective Investment Vehicles (CIVs) or derivatives where it may not be practical or cost efficient to obtain direct investment exposure in underlying assets. In those instances, QuayStreet will use best endeavours to use those CIVs and derivative instruments that implement restrictions and screening process that is consistent with QuayStreet’s SRI Policy. Due to slight differences in methodology, there may be some unavoidable exposure to companies that otherwise would be excluded under our criteria. This Policy does not apply to investments whose returns correspond to the inverse of the underlying asset’s performance.
Download the Socially Responsible Investing Policy
Signatory to United Nations-supported Principles for Responsible Investment (PRI)
In February 2017 QuayStreet became a signatory of the Principles for Responsible Investment (PRI). Established in 2005 by the then United Nations Secretary-General Kofi Annan, PRI is regarded as the world's leading advocate of responsible investment globally.
By becoming a signatory QuayStreet is publicly demonstrating its commitment to the Principles for Responsible Investing, an internationally agreed framework for investment decision making. This will position the Socially Responsible Investment Fund for the long-term and further strengthen QuayStreet’s current approach to responsible and sustainable investment. Read more