Responsible investment vital in long term

ASSET managers have to act as responsible stewards of clients’ money.

This is according to Old Mutual Investment Group CEO, Diane Radley, who says that open and collaborative engagement is critical if the industry is going to produce the kinds of solutions and innovation required to achieve sustainable economic growth over the long term.

Speaking at Old Mutual Investment Group’s annual responsible investment conference, Tomorrow: As Invested As You Are, Radley says the wealth and savings of South Africans can and should be deployed into investments that deliver a good return while building social, natural and human capital.

And while the group does not claim to have all the answers, they are of the opinion that open and collaborative engagement is critical if the industry is going to produce the kinds of solutions and innovation required.

Our business firmly believes in being good stewards of our clients’ assets and investing through a sustainable investment lens,” says Radley.

As managers of large portfolios of assets, we use our influence, at both a market and a company level, to ensure and promote good corporate governance practices.

At the end of the day, our aim is to generate sustainable risk-adjusted investment returns that incorporate an understanding of what will drive investment returns in the long term.”

Radley says responsible investment goes beyond traditional financial analysis, and includes considering material environmental, social and governance issues when making investment decisions.

Companies are responsible for the majority of the global environmental footprint and social impact, so their operational practices and future strategy decisions are collectively important for us all.

At the same time companies are realising that their impact on the environment and society can affect brand value, the ability to attract talent and even the ability to raise capital all of which impact longterm value,” explains Radley.

As a business, we have committed to both monitoring the extent to which our asset managers invest responsibly, and directly investing in the building blocks of a sustainable economy, such as housing, education, agriculture and renewable energy.”