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Musa Group (Pty) Ltd (Delisted)

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.

Our approach to responsible investment is risk and return focused. In line with our overarching investment philosophy, we will integrate ESG factors into Musa’s investment decision-making and ownership practices. We believe researching, assessing and managing ESG factors will enhance our ability to meet the long-term investment objectives for our funds. With regards to establishing a trade-off between impact and returns, we do not see ESG considerations as being contradictory to our commercial objectives. Rather, we will identify opportunities for enhancing the internal efficiencies and market opportunities of our portfolio companies through ESG management, while reducing the risks associated with our investment process. This approach is premised on the tenet that active ownership can add sustained value at exit and to the advancement of sustainable development within Africa. Musa Group further believes that communication of ESG also plays a vital role in the enhancement of exit valuations, when based on credible and accurate data gathered over the period of the investments.

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]

Musa has identified an appropriate ESG strategy to achieve the requisite balance between environmental and social impact and commercial returns as established by our ESG Philosophy stated above. Starting at the initial stages of the investment process, Musa will look to apply the below mentioned principles to its portfolio companies and their operational activities. Post-investment, Musa will continue to monitor progress on ESG matters and compliance by portfolio companies to our ESG framework and policy guidelines.  This framework and policy guidelines will be formulated with the following objectives:

·       To adhere to the UNPRI, and the IFC Performance Standards;

·       To integrate ESG into our investment management framework through our published ESG   management system;

·       To partner with appropriate ESG experts to provide independent guidance on best international practice relating to ESG matters;

·       To conduct ESG Due Diligence (ESG DD) assessments of all potential investment opportunities to requisite specifications, as required;

·       To undertake our activities in line with applicable international standards and industry good practice such as the World Bank Environmental, Health and Safety Guidelines;

·       To meet the requirements of applicable National, Provincial and Local legislation wherever our funds will be invested and/or its portfolio companies operate;

·       To foster value-driven ethical behaviour, informed by respect for human rights;

·       To ensure that negative ESG impacts are avoided or reduced as far as practicable;

·       To communicate and work closely with Portfolio Companies to ensure management and employees’ understanding and shared commitment to conformance with this policy;

·       To implement reasonable precautions to protect the health and safety of Portfolio Company employees and any external parties such as affected communities; and

·       To implement responsible practices to ensure that good governance will enhance and maintain the reputation of the Fund at all times.

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.

Musa has put together a list of potential conflict risks that exist, has assessed them by business area and income stream as well with documented controls and appropriate response to those conflicts.

All employees, including Compliance Officer and management, are responsible for identifying specific instances of conflict and are required to notify the Compliance Officer of any conflicts they become aware of.

Avoiding Conflicts of Interest altogether:

If a serious potential impact on Musa or a client exists, the conflict must be avoided altogether. Merely disclosing the risk and imposing internal controls is not enough.

Disclosing Conflicts of Interest appropriately:

Where a conflict of interest cannot be avoided, clear, concise and effective disclosure is essential so that client can make an informed decision. Appropriate disclosure to a client will depend on all facts presented and a number of circumstances including the level of financial literacy of the client, the extent to which other clients are likely to rely, directly or indirectly, on the service, how much the client already actually knows about the specific conflict and the complexity of the service being presented to the client.

03.3. Additional information. [Optional]

SG 04. Identifying incidents occurring within portfolios (Private)