SOCIALLY RESPONSIBLE INVESTMENT PROCESS & CRITERIA


The Socially Responsible Investment Fund invests in a diversified range of defensive and growth investments, that we consider environmentally and socially sustainable, whilst still meeting our traditional investment criteria. Investments are carefully selected through our stringent Socially Responsible Investment (SRI) process and criteria.

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, promote sustainability and eradicate corruption continues.


Our 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 PROCESSES - 

Traditional investment decision making applied to portfolio construction and implementation can typically be separated into three steps:

SRI chart 1

Our approach to SRI adds two steps of analysis to our traditional investment decision making process as outlined in the flow chart below:

SRI chart 2

*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. 

PRINCIPLES FOR RESPONSIBLE INVESTING

PRI Colour

ABOUT PRINCIPLES FOR RESPONSIBLE INVESTMENT 

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.

The PRI is truly independent. It encourages investors to use responsible investment to enhance returns and better manage risks, but does not operate for its own profit. It engages with global policymakers but is not associated with any government. PRI is supported by the United Nations* and has nearly 1,700 signatories world-wide.

The Principles for Responsible Investment (PRI) works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions.

*The Support from the United Nations does not include financial support. 

Find out more about Principles for Responsible Investment >