ESG Topics

Key environmental, social and governance topics

RI in the context of Developmental Investment

RI can include very specific, narrowly focused strategies and products that specifically target investment-grade opportunities to finance projects and companies that involve developmental objectives.

Developmental investment typically means targeted financial investment in which the investors intentionally prioritise the allocation of capital to investments and projects that achieve specified developmental outcomes.

This can include investment in infrastructure, microfinance, housing, sustainable energy and a range of other themes; the instruments available span the full range of assets classes, from Listed Equity to Fixed Income to Private Equity. 

For the purposes of this Guide (and in line with the commonly understood jargon of the RI world), these types of investment strategies are referred to hereafter as “thematic investment”.  It must be emphasised that thematic investment is not a mandatory or automatic part of RI; nor, in isolation, is it sufficient. In addition, such investments should meet the normal tests of prudent investment practice.

The illustration below aims to provide further clarification.

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