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Specialist in Asia Pacific, Japan, China, India and South East Asia and Global Emerging Market equities.
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At Stewart Investors, we believe in putting people first. Our investment world-view is of a series of partnerships – with each other, with our clients, with the companies we invest in, the people who buy their goods and services, and with the wider society in which we all live and work.
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Leader in systematic equities across market cap weighted indices, smart beta and active quantitative strategies
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Australain Equities Growth Responsible Investment
- Our funds
- Fixed Income
- Australian Fixed Income
- Australian Fixed Income - 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.
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.
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
Responsible Investment
For over a decade, responsible investment has been integrated into every investment process.
On 16 September 2019, Colonial First State Global Asset Management (CFSGAM) rebranded to First Sentier Investors. Any content produced prior to this date that references CFSGAM or Colonial First State Asset Management (Australia) Limited should be read as references to First Sentier Investors or First Sentier Investors (Australia) IM Ltd.
Material on this website is intended to provide general information only. Such material does not into account your objectives, financial situation or needs. You should consider these matters before acting on the information and consider the relevant Product Disclosure Statement for any product named on this website before making an investment decision.
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.
The target market determination (TMD) for any fund mentioned on this website is available HERE and should be considered by clients or prospective investors prior to making a decision to invest to ensure that they form part of the relevant target market.
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 2022, (part of First Sentier Investors, a global asset management business. First Sentier Investors is ultimately owned by Mitsubishi UFJ Financial Group, Inc MUFG.)
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