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Pacific Equity Partners

PRI reporting framework 2020

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.

PEP Funds have pursued a clearly defined and consistent investment philosophy to invest in
leading businesses that are not being managed to their ‘full potential’, that operate in well defined
markets and where external risks seem unlikely to overwhelm these advantages.

PEP identifies such opportunities often, particularly with entities which are ruled by traditional
management incentive structures. The combination of a regular bonus structure with relatively
unsophisticated control and benchmarking systems creates a culture of ‘managing and
exceeding expectations’ rather than one of ‘managing to maximum performance’. This
phenomenon typically generates ‘underperforming leaders’. These are the companies
systematically targeted by PEP.

PEP’s advisory model relies on two principal activities to improve the value of a company:
selecting the right management team and a disciplined pursuit of a strategy for operation
improvement. Both of these initiatives require a high degree of autonomy and control over the

Implementation of the strategy includes ESG and other factors together, in both adding value and managing risk.

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]

The PEP Investment strategy will not focus on a specific industry, but will target the
most attractive opportunities available in a variety of sectors of the Australia / New Zealand
economy. The PEP investment team have accumulated
both consulting and private equity investment experience in all of the major sectors of the
economy, but where specialised expertise is required, for eg, environmental DD, experts are used to ensure risks are managed and opportunities are maximised.

As the core of PEP’s investment philosophy is improving operations, PEP will seek to
minimise  exposure to large external risks that can impact the value creation process.
As a consequence, for example, PEP Funds are unlikely to invest in businesses that depend on
commodity prices for their return. PEP Funds will also not invest in tobacco and gaming and
gambling assets, and will generally avoid investing in traditional retail businesses where the
Firm has learned that the combination of cyclical risks and high fixed costs can create
challenges that overwhelm the investment model.


PEP's approach to responsible investment evolves constantly to ensure all risks and oportunities are reviewed properly.

01.6. Additional information [Optional].


SG 01 CC. Climate risk (Private)

SG 02. Publicly available RI policy or guidance documents


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].

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.

We have several policies which cover conflicts of interest which apply to all areas of our business. These include a Gifts and Benefits policy, a Securities Dealing policy, a Discrimination policy, an Anti-Bribery policy and a Political Contribution policy.

03.3. Additional information. [Optional]

SG 04. Identifying incidents occurring within portfolios (Private)