Auscap Asset Management Limited (Auscap) is a value-based Australian equities manager. Auscap targets solid absolute risk-adjusted returns, looking to invest in companies that generate strong cash flows and are trading at attractive prices.
Auscap has a duty to act in the best interests of its funds’ unitholders. Auscap recognises that ESG issues can affect the long-term profitability of companies which can in turn affect their share price and the performance of Auscap’s funds. Accordingly, we believe that considering ESG factors within Auscap’s investment decision-making and ownership practices, provides greater insight into areas of potential opportunity and risk and is consistent with our fiduciary duty. As a result, Auscap includes an assessment of ESG factors for the purpose of selecting, retaining or realising any investments for its funds.
While Auscap considers ESG factors in investment analysis and decision-making, we are also aware of, and encourage, the broader benefits which improved ESG practices can bring, including:
- increased market efficiency;
- sustainable environment management;
- higher standards of business conduct; and
- improved outcomes for company stakeholders including employees and customers and the broader community.