We understand the power investments can have to drive positive change in society while generating returns.
A unique range of risk-rated Sustainable portfolios
For clients that prioritise the importance of Environmental, Social and Governance (ESG) principles within their portfolio, we have a range of Sustainable investment strategies that can be harnessed.
Like our core investment portfolios, controlling risk remains at the heart of these with risk levels set with reference to global equity markets. We also aim to employ wide diversification to reduce exposure to any one risk factor and improve risk-adjusted returns.
In addition to our core principles, the Sustainable strategies have three primary areas that they look to adhere to:
Impact
We prioritise investing in managers who actively support companies and products that are making a positive impact on society. In particular, we favour managers who are dedicated to addressing global challenges and contribute to the achievement of the United Nations Sustainable Development Goals (SDGs).
Sustainability
When constructing our Sustainable portfolios, we partner with third-party fund managers who have demonstrated expertise in sustainability integration and engagement within their investment process. This approach allows us to mitigate risks associated with environmental and social issues and potentially seize opportunities arising from sustainable innovation.
Negative Exclusions
Our Sustainable strategies have a screening process applied to them to remove companies engaged in activities that are inconsistent with our values and the sustainability agenda. The portfolios exclude the worst offenders, including but not limited to tobacco, controversial weapons, thermal coal, gambling, and palm oil.
The overall approach looks to deliver competitive financial returns whilst simultaneously aligning with sustainable principles.
UN Principles of Responsible Investment (UNPRI)
In addition to offering clients our Sustainable range, Saltus are signatories of the United Nations Principles for Responsible Investment. Signatories can help contribute to developing a more sustainable global financial system.
The UN Principles are:
- Incorporating ESG issues into investment analysis and decision-making processes.
- Being active owners and incorporating ESG issues into ownership policies and practices.
- Seeking appropriate disclosures on ESG issues by the entities in which a firm invests.
- Promoting acceptance and implementation of the Principles within the investment industry.
- Working together to enhance effectiveness in implementing the Principles.
- Reporting on activities and progress towards implementing the Principles.