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Greencape Capital

PRI reporting framework 2019

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

As a manager of client funds over a medium to long-term, we are conscious that the stock in which we invest are best positioned to perform if they can sustain:

  • cash flow generation growth,
  • brand value,
  • and reputational credibility. 

These characteristics are common with many environmental, social and corporate governance (ESG) attributes. Therefore, we believe it is valuable to consider ESG issues as part of our investment process, as such issues can influence the risk-adjusted investment returns of a stock. 

As an investment manager, we are more than willing to adopt an activist approach when considered appropriate. Indeed, we believe that as shareholders we should use our position to enhance the value of a company wherever possible. If we did identify issues of concern then we would actively engage with the company (management and Board).
 

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

We construct our portfolios from the bottom-up, based on detailed stock-level analysis. As such, we do not generally consider the portfolio in terms of exposure to thematics or trends. That said, we are conscious of aggregate exposures and biases in our portfolio and monitor these closely to ensure they remain acceptable and consistent with our bottom-up views. In regard to ESG trends, we are particularly focused on governance issues at the current point, including capital allocation policies and executive remuneration structures. Capital allocation decisions can, in our view, have a very material impact on the future performance of a stock, and we are heavily focused on assessing company management's track record of allocation decisions, and strategy for the business going forward. Executive remuneration arrangements are also of importance, as they influence behaviour and culture. In general, we advocate for structures that promote a focus on long-term shareholder value creation and have appropriate and quantifiable metrics in place to assess performance.

Our investment process incorporates a strong risk management element and we constantly monitor our total portfolio exposures and the biases currently in place

01.6. Additional information [Optional].

          
        
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SG 01 CC. Climate risk (Not Applicable)


SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Additional information [Optional].

We do not publicly disclose our investment policy documents however it is available upon request.


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Greencape's Conflicts Policy aims to ensure that: 

  • we maintain the integrity of our advice and services to clients;
  • we and our Staff as representatives act efficiently, honestly and fairly;
  • we and our Staff comply with all relevant financial services laws, ASIC guidance and the requirements of our AFSL; and
  • we and our Staff comply with their agency and fiduciary obligations under the common law.

We are required to have in place adequate arrangements for the management of conflicts of interest that may arise wholly, or partially, in relation to activities undertaken by us or our representatives in the provision of financial services as part of our financial services business.

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


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