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Sukha & Associates

Service Providers Framework 2020

You are in Investment Consultancy » Investment research

Investment research

IC 10. Investment research activities

10.1. Indicate whether you incorporate ESG into your investment research services.

10.2. Indicate whether the following activities are part of your investment research process. Describe for each activity how you incorporate ESG.

Investment research activities

Describe how you incorporate ESG

          We have done high-level research on private debt - Africa fixed income in particular - and the impact that deeper and more liquid African bond markets would have on economic growth.

Describe how you incorporate ESG

          We seek to identify impact / blended finance funds within each asset class and compare their attractiveness (using various factors that are important to the client) relative to traditional funds. If such funds are identified, we tend to disinvest from the client's traditional fund in favour of the high impact fund within the same asset class.

Describe how you incorporate ESG

          We have started to include ESG versions of the major indices in our performance report to make clients aware of them and to possibly consider utilising them as benchmarks.

Describe how you incorporate ESG

          We recommend incorporation of ESG / RI clauses, which are consistent with the principles set out in Regulation 28, in mandates with asset managers.

Describe how you incorporate ESG

          We usually recommend consideration of an equivalent ESG version of a benchmark where its available prior to the client selecting a benchmark for their investments. We are researching an alternative benchmark for local equities for a client that would have an ESG overlay similar to their offshore benchmarks.

Describe how you incorporate ESG

          We seek to obtain an ESG rating / score of the client's portfolio and use the results to engage with asset managers. Due to the cost of obtaining such analysis, we have done this on an ad-hoc basis but would prefer to conduct such an exercise more frequently.

Describe how you incorporate ESG

          We have done research into transformation within the stockbroking industry in South Africa, which assisted us in setting a progressive stockbroking policy for a client. We annually conduct a survey of staff demographics at asset managers.

10.4. Additional information. [OPTIONAL]

IC 11. Demonstrating value on investment research

11.1. Describe how you measure, track or otherwise demonstrate your value on investment research activities.

          After presenting our research to clients, we assess their level of interest in discussing it further and whether they are keen to adopt some of the recommendations. We monitor the outcomes of the research and whether it has had the desired effect. If our research results in actionable steps and implementation, then we view this as a successful outcome for the research team.

11.2. Additional information. [OPTIONAL]