Advantage Asset Managers address the U.N. initiative on principles of responsible investing

In August 2006 Advantage Asset Managers became the third signatory - after the Government Employees Pension Fund and Fraters Asset Management - to the UN's finance initiative known as Principle for Responsible Investment.

As Kofi Annan pointed out in introducing this initiative, the formulation of a set of global principles that can guide investors towards more sustainable investment practices that not only address better long term investment returns but align investment practices with the goals of the UN to enhance the quality of life everywhere though their focus on social, governance and environmental considerations.

According to Anne Cabot-Alletzhauser, this UNEP initiative asks the following provocative questions: "Are the best interests of savers only to be defined as their financial interest? If so, in respect to which horizon? Are not the social and environmental interests of savers also to be taken into account? What good is an extra percent or three if the society in which they are to enjoy retirement and in which their descendents will live deteriorates?"

"In becoming a signatory to this initiative, we basically agree to commit to identifying ways to gradually incorporate the PRIs suggested objectives, not just in specially targetted investment products, but across all our range of client solutions," says Cabot Alletzhauser. 

For Advantage Asset Managers, these principles can be interpreted as follows:

1.  We will encourage our asset managers to incorporate social, environment and governance issues into investment analysis and their decision-making process.

2.  We will be active fiduciaries on behalf of our clients and exercise voting rights and participate in collaborate engagement initiatives that address policies to support social, environmental and governance initiatives.

3.  We will seek appropriate disclosure on social, environment and governance issues by the entities in which we invest.

4.  We will promote acceptance and implementation of the Principles within the investment industry through our interactions with our fund managers, consultant, our clients, and broader industry groups such as IMASA and ABSIP.

5.  We will work together with all these parties and the international community that are party to the initiative to enhance our effectiveness in implementing the Principles.

6.  We will report on our activities and progress towards implementing the Principles to this international collective.
 
In summary, what is key about our activities is that:

* Instead of asking who should be responsible for initiating these practices the asset owners, the asset managers, the consultants etc, we at Advantage are putting up our hand and saying we will take responsibility.

* Most importantly, we believe that integrating these practices will significantly enhance the long term investment value we provide to our clients.

* Finally, we believe in an holistic approach that looks at socially responsible investment practices as integral to all our investment practices, and not just as a specialist strategy to which investors allocate a limited percentage of their overall assets.