(Note: this section covers the investment principles of the Pengana International equity strategies that are managed with ethical mandates.)
The Pengana international equity strategies that have ethical mandates use a negative ethical screen, and seek to avoid investing in businesses that are, in our opinion, currently involved in activities that are unnecessarily harmful to people, animals or the environment. These activities include:
- the manufacture or sale of weapons and weapons components
- tobacco manufacture
- gambling outlets or systems
- intensive animal farming
- animal testing for cosmetics
- activities that give rise to human rights violations
- unremediated destruction of the environment
- uranium mining and nuclear reactors
- fossil fuel exploration, production, refining, storage and transportation.
ESG factors are also considered as part of the bottom-up analysis undertaken on each stock and form part of the qualitative assessment. They are seen primarily as a risk management tool, with ESG issues considered for both their short term and long term impact and hence their materiality to a stock. Pengana employs a specialist ESG research database to assist with company analysis, business involvement and ESG related controversies.