Responsible Investing

What is Responsible Investing?

As a social purpose investment fund manager, we take a long-term view in our duty to act in the best interests of our investors. We have, from the inception of our funds, integrated  environmental, social and governance (ESG) factors in our investment decision-making process.

As an early adopter of Responsible Investing (RI), Encasa has long been a proponent of the idea that “good companies make good investments.” Our Funds aim to invest in companies which conduct themselves in a socially responsible manner, and whose business practices favour the environment, promote workers’ rights, and demonstrate strong governance. Responsible investment achieves financial results and provides investors with long-term value.

RI is a strategy that takes ESG factors into account during the selection and management of investments. For example, instead of choosing to include investments in a company that sells tobacco, the RI approach might opt to select a company that is working on clean energy or environmental initiatives instead.

The ultimate goal of RI is to help solve social and environmental problems through specific, targeted investing. However, RI demands that even companies doing good things need to demonstrate that they also have socially responsible business practices. Paying fair wages and committing to diversity and gender equality in the workplace are examples of the kind of positive attributes that we look for in a company.

We use both negative screening and, where there are opportunities that align with our sub-advisers’ investment strategies, positive inclusion in building our investment portfolios. We generally exclude companies if they are engaged in any undesirable activities that would make them ineligible for consideration. We aim to include in our investment universe companies with a strong record in everything from environmental initiatives to employee relations. We favour companies that are well-governed and demonstrate fairness to investors. And we favour companies that have strong financial attributes and that have direct and measurable social impacts.

Knowing exactly what your money is supporting is important to investors. When your investment is helping companies that are making a positive impact by addressing issues like poverty, climate change, and other challenges while also providing a good return, everyone benefits. In fact, funds that follow responsible investing practices are known to deliver strong returns, performing just as well as traditional investments. There’s no need to worry that you’re sacrificing returns in favour of ethics with RI.

Encasa is committed to providing investors with the opportunity for capital growth while adhering to the principles of responsible investing.