Environmental, Social and Governance Philosophy Statement

Fisher Investments believes ESG investors are best served by an investment process that considers both top-down and bottom-up factors. Integrating ESG analysis at the country, sector and stock levels consistent with clients’ investment goals and ESG policies maximises the likelihood of achieving desired performance and improving environmental and social conditions worldwide.


Environmental, Social and Governance Investing

Fisher Investments considers environmental, social and governance issues in the investment and portfolio construction process. Further, Fisher Investments regularly screens and tailors its investment approach for separately managed accounts depending on any particular social and environmental guideline mandated by the client.

 

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Consider the following when viewing the above chart:

  • ESG issues are among many drivers considered by Fisher Investments' Capital Markets Analysts and Fisher Investments' Investment Policy Committee when developing country, sector and thematic preferences. Governmental influence on public companies, regulatory environments, and market reforms impacting private property, labour and human rights are among multiple ESG influencers considered for all of Fisher Investments' clients when shaping an initial prospect list of portfolio positions.
  • Fisher Investments' Securities Analysts perform fundamental research on prospective investments to identify securities with strategic attributes most consistent with its top-down views and with competitive advantages relative to their defined peer group. The fundamental research process involves reviewing and evaluating a range of ESG factors with Fisher Investments' Investment Policy Committee prior to purchasing a security with the goals of identifying securities benefiting from ESG trends and avoiding those with underappreciated risks. These factors include, but are not limited to, shareholder concentration, corporate stewardship, environmental opportunities & liabilities, and human or labour rights controversies. In situations where security level issues violate a client mandated ESG policy or present an inordinate risk to a company’s operational or financial performance, or the firm believes they present undue headline risk to share price performance, Fisher Investments would choose not to invest in that company.

Fisher Investments' Investment and Portfolio Construction Process

As part of the investment process, Fisher Investments evaluates the risk ESG issues may present to stock performance. ESG issues are examined on a case-by-case basis, and are willing to consider the potential impact of all types of ESG concerns. Further, Fisher Investments' ongoing analysis of global political drivers can influence security selection tied to potential political or regulatory risks companies face surrounding ESG issues.

  • Fisher Investments' emphasis in understanding the dynamics of political, social and environmental outcomes provides insights on how ESG issues affect equities. Fisher Investments monitors key social policies driving wealth creation and economic growth, including infrastructure investment, tax policy, free trade, property rights and government reform, as well as social factors.
  • Political factors affecting these social policies are also integral to Fisher Investments' top-down analysis (e.g., election cycles, legislative gridlock, etc.), and Fisher Investments maintains a keen awareness of regulatory risk.
  • Fisher Investments' analysts monitor advancing energy efficiency (especially within Industrials and Technology companies), nuclear power risks, resource extraction implications (e.g., labour strikes and resource nationalization) and litigation risk tied to environmental impact, among other factors.

 

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Factors to be considered when constructing an ESG portfolio.


> As of 30/06/2018 we had over $20 billion USD in our ESG/SRI asset under management.

Investing in stock markets involves the risk of loss and there is no guarantee that all or any capital invested will be repaid. Past performance neither guarantees nor reliably indicates future performance.


About Fisher Investments Australasia

Fisher Investments Australia offers a variety of Global, Non-US, and US Equity strategies for institutional investors. FIA delegates portfolio management to its parent company, Fisher Investments, a money management firm in the US founded in 1979 by investment guru Ken Fisher. Today, Fisher Investments and its affiliates oversee more than $100 Billion* in assets for over 50,000 private clients and 175 institutional clients globally.* Founder Ken Fisher’s “Portfolio Strategy” column for Forbes ran from 1984 through 2016, making him the longest continually running columnist in the magazine’s 90+ year history. He has also authored several New York Times bestsellers on finance and investing. (*As of 01/07/2018. Includes Fisher Investments and its subsidiaries.)

For your reference, Fisher Investments Australasia is an investment manager located in Sydney. The parent company, Fisher Investments, is based in the United States, and manages assets for large institutional clients around the world.

Fisher Investments Australasia Pty Ltd (FIA) holds an Australian Financial Services Licence (#433312) with the Australian Securities and Investment Commission (ASIC). FIA delegates portfolio management to its parent company, Fisher Investments (FI).