Close

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

Discover more
Investment strategies
Close

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.

Discover more
Investment strategies
Insights
Close

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

Discover more
Investment strategies
Website experience: au Australia Individual Contact us
Contact us

Australain Equities Growth Responsible Investment

Approach to Responsible Investment

Stewardship and ESG integration

In the Australian fixed income space, the Environmental, Social and Governance (ESG) assessment most often comes through its impact on the internal rating 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 automotive 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 Australian fixed income portfolios.

Outside of this channel, ESG considerations are also positively incorporated in our investment decision for bonds that have been issued for Socially Responsible purposes. We have recently been actively involved in Green Bond issuance from Queensland Treasury Corporation and the Commonwealth Bank of Australia, as well as the Gender Equality bonds issued by National Australia Bank.

"ESG issues are fundamental to infrastructure companies, given they have significant service obligations and moral accountability to the communities in which they operate."

In these instances, the ESG benefits act as an important offset to the lower liquidity that these typically smaller bond lines can encounter. These benefits result in increased demand in the secondary markets, thereby boosting prices and lowering yields, ceteris paribus. Without this consideration, we would not look to actively overweight Socially Responsible focused investments as we have in the recent past, which demonstrates the opportunity for fixed income investors to use ESG factors to broaden the set of investment opportunities.

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

Long-term climate change considerations are particularly pertinent for Australia, at both the sovereign and state level. The increasing frequency of extreme weather events, for example, can have serious implications on federal and state expenditure and, in turn, funding requirements.  A long-term requirement to replace fossil fuel-based power generation stations with facilities powered by renewable energy sources also looms large on the budget horizon.

More information

View First Sentier Investors proxy voting record and statistics

Back to Australian Fixed Income

View our full range of investment strategies

Responsible Investment

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

Our funds

Performance & documents

Responsible Investment

Insights

Who we are

Contact us

Media releases

Sitemap

Important information

Complaints procedure

Privacy policy

Whistleblower

Cookies statement

Financial Services Guide (PDF)

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 used under licence. References to Colonial First State Asset Management (Australia) Limited are references to the former name of First Sentier Investors (Australia) IM Ltd.

Material on this website is intended to provide general information only. Any material that constitutes financial product advice is general financial product advice only. It has been prepared without taking account the objectives, financial situation or needs of any particular person. You should, before you make any investment decision in relation to a managed investment scheme managed by First Sentier Investors (Australia) IM Ltd (FSI AIM) or its related bodies corporate (Fund), consult your own financial advisor and obtain a copy of the product disclosure statement for the relevant Fund in order to consider the appropriateness of the material having regard to your own objectives, financial situation and needs. A copy of the Financial Services Guide (FSG) for First Sentier Investors (Australia) IM Ltd and First Sentier Investors (Australia) RE Ltd is available on the First Sentier Investors website. Any performance information has 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.   

Any opinions expressed in videos are the opinions of the individual participant and are subject to change without notice. Such opinions are not a recommendation to hold, purchase or sell a particular financial product and may not include all of the information required to make such a decision. Before making any such decision you should consult a financial adviser.

Copyright © First Sentier Investors (Australia) Services Pty Ltd 2021, (part of First Sentier Investors, a global asset management business. First Sentier Investors is ultimately owned by Mitsubishi UFJ Financial Group, Inc MUFG.)