Is there a difference in RI implementation between a DB and DC scheme?

This Guide does not make a distinction between defined benefit (DB) and defined contributions (DC) funds. The fundamental rationale for RI does not depend on whether a fund provides a DB or DC benefist. Neither should it depend on whether the fund is guaranteed by the state. All funds should seek to use RI to […]

What are the leading pension funds doing?

The conversation has in the past few years moved from the activity of ESG integration to a focus on the actual real-world results of that ESG integration. The reasons behind this shift include the increasingly obvious evidence of pressing socio-environmental issues, combined with their anticipated systemic impact on economies, business and investment.  As investors are […]

How can my fund apply engagement strategies in passive mandates?

Asset owners should have the same fundamental perspective on engagement regardless of whether an active or passive strategy is in question.  Even though passive investments aim to limit management costs, investors have a general interest to manage negative externalities (such as corruption or climate change) which could damage the economy or sector in question. The […]

What is the cost of implementing ESG?

The costs of implementing ESG depend on the ESG-integration strategies chosen by the fund, but generally may relate to costs associated with bringing in ESG expertise (whether in-house or advisory), conducting or obtaining ESG data and analysis, adjusting portfolio approaches, adjusting mandates, etc. However not implementing ESG may result in potentially more significant costs over […]

Most of my portfolio is in the SA listed markets which has a small investable universe where negative screening is not really an option. Does this mean I cannot invest responsibly?

No. Exposure to a small listed universe does not prevent responsible investment.  Negative screening and exclusion are only a sub-set of the available tools for responsible investment where divestment is a related and powerful tool to send a strong signal about a particular company or sector. However, there are a variety of other tools you […]