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Element Investment Managers

PRI reporting framework 2019

You are in Direct - Listed Equity Incorporation » Outputs and outcomes

Outputs and outcomes

LEI 12. How ESG incorporation has influenced portfolio composition

12.1. Indicate how your ESG incorporation strategies have influenced the composition of your portfolio(s) or investment universe.

Select which of these effects followed your ESG integration:

12.2. Additional information.[Optional]


LEI 13. Examples of ESG issues that affected your investment view / performance

13.1. Provide examples of ESG issues that affected your investment view and/or performance during the reporting year.

ESG factor and explanation

AngloGold ranked highly in terms of corporate governance, environmental and social issues relative to other SA listed gold shares. We tilted our overweight gold share position in favour of AngloGold.

We furthermore engaged with management and IR on numerous occasions through the year to improve the disclosure of impact of new Tanzanian Mining Laws and royalty payments.

Implemented by new Tanzanian President John Magufuli – de facto effective during 2017.
Affects ANG through its Geita mine in Tanzania – material as c20% of ANG’s EBITDA.
Element has been engaging with ANG to publish more information – operational and financial - on the effects of new Mining Laws.
ANG has not been able to meet Tanzanian President to date despite a number of requests.
ANG to request meeting via new SA President, Cyril Ramaphosa and new Mines Minister, Gwede Mantashe.
ANG engagement with Tanzanian government may be useful for long-term sustainability of Geita.

ESG incorporation strategy applied Integration

Impact on investment decision or performance

Positive

ESG factor and explanation

MTN (mobile phone company) was underweight based on a discount applied for poor corporate governance score.

ESG incorporation strategy applied Integration

Impact on investment decision or performance

Positive

13.2. Additional information.[Optional]


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