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Specialist in Asia Pacific, Japan, China, India and South East Asia and Global Emerging Market equities.

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Stewart Investors manage investment portfolios on behalf of our clients over the long term and have held shares in some companies for over 20 years. They launched their first investment strategy in 1988.

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Leader in systematic equities across market cap weighted indices, smart beta and active quantitative strategies

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Short Term Investments Responsible Investment

Approach to Responsible Investment

Stewardship and ESG integration

In the Short Term Investments and Global Credit space, the Environmental, Social and Governance (ESG) assessment most often comes through its impact on the internal credit rating (ICR) provided by the Credit Analysts via our Credit Research process.

The portfolio management team then use this to assess relative value when compared to other similarly rated issuers. For example, ESG considerations in the financial industry have led to our internal rating for some issuers being lower than that of the external rating agencies. As a result, the risk-reward assessment has often been decided such that we are underweight that sector in our active global credit portfolios.

The ICR is also used by the credit portfolio managers when making their decision to buy or sell securities and to determine position sizes for the funds that we manage.

Case studies

We believe that a strong commitment to stewardship is an essential component of a strong approach to responsible investment (RI), and that embedding RI into the core of our investment activities is in the best long-term interests of our clients. For more than a decade we have systematically and progressively improved our practices and processes across our investment capabilities globally.

Learn more through our interactive case studies map

Climate change

The section below provides addition, team specific, information on climate change. Further information on our approach to climate change can be found in our climate change statement.

Team Climate Change Statement

The Short Term Investment team employs the same approach as the Global Credit team relating to climate change-related factors affecting individual issuers.

Our over-arching approach is to consider how climate change – and, importantly, society's response to it – is likely to impact the business model and corporate strategy of issuers. We incorporate both internal and external data sources to help inform our ESG risk assessments.

We take into account how such ESG factors will likely impact the financial performance of each company going forward. Subsequently, we determine the overall credit risk for a company, including its risk of asset stranding. This is incorporated into our internal credit ratings and translates to an acceptable yield level to compensate for that issuer's risk across the maturity curve.

More information

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For over a decade, responsible investment has been integrated into every investment process.

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In Australia ‘Colonial’, ‘Colonial First State’, ‘CFS’, and ‘First State Global Asset Management’ are trade marks of Colonial Holding Company Limited and ‘Colonial First State Investments‘ is a trade mark of Commonwealth Bank of Australia (the Bank) and all of these trade marks are used by First Sentier Investors under licence.

On 16 September 2019, Colonial First State Global Asset Management (CFSGAM) rebranded to First Sentier Investors. Any content produced prior to this date may be branded CFSGAM and include trade marks that First Sentier Investors is permitted to use under licence.

The product disclosure statement (PDS) and Information Memorandum (IM) for the Colonial First State Global Listed Infrastructure Securities Fund-Class A, ARSN 157 876 134 (Fund) issued by Colonial First State Investments Limited (ABN 98 002 348 352, AFSL 232468) (CFSIL) should be considered before making an investment decision. The PDS or IM are available from First Sentier Investors on its website.

Total returns for the Funds have been calculated using exit prices after taking into account all ongoing fees and assuming reinvestment of distributions. No allowance has been made for taxation. Past performance is no indication of future performance.

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