Investing with a conscience
Demand for socially responsible investment options is escalating in response to the widespread corporate greed and poor business ethics exposed by the global credit crunch. This new wave of consciousness is seeing investors insisting on making money in a way that minimises social, economic and environmental consequences. In response to this, Sanlam Investment Management (SIM) this month launched two new socially responsible investment (SRI) offerings, the SIM SRI Equity Fund and SIM Development Debt portfolio.
Douglas Davids, head of socially responsible investing at SIM said, “Though not a new concept, SRI is growing on a global scale. Increasingly, people want to see their beliefs and values reflected in every aspect of their lives, from living ‘green’, to signing up for key causes - and investing responsibly.
“At SIM we are confident that these funds, while aiming to deliver consistently strong investment performance, will help us use our position as large investors in most of SA’s biggest corporates to facilitate positive social change. We don’t see these as marginal or ‘add-ons’ – they are a core part of our offering and likely to become increasingly so,” said Davids.
The new SIM funds, best suited to institutional investors, offer exposure to SRI equity and debt initiatives respectively and give investors the flexibility of either using them as individual funds in a broadly diversified investment portfolio or as part of a balanced fund or core SRI allocation.
By investing in either of SIM’s SRI fund offerings, investors get access to significant investment research, shareholder clout and operational resources of the broader Sanlam Investment Management business. The research that underlies the JSE SRI index to identify an investable universe of stocks will be used by Davids who will manage the funds.
The SIM Development Debt portfolio is a socially responsible investment (SRI) solution providing building blocks enabling investors to bring about social and economic change while generating investment related returns. The portfolio will hold rated unlisted SA debt instruments, bonds listed on the Bond Exchange of South Africa as well as Southern African Development Communities (SADC) member countries’ rated bonds. “This portfolio is for investors who seek real returns while making a meaningful contribution to social, economic, developmental and infrastructural growth in South Africa,” says Davids.
The SIM SRI Equity Fund aims to build long-term capital growth while promoting sustainable and responsible investing. It invests in listed South African equities that is viable and sustainable with a clear commitment to job creation, skills development,, sound environmental practices and effective corporate governance.
