InvestNow News 28th June – Harbour Asset Management – Sustainability is Good for Returns
Shane Solly Jun 27, 2019
Harbour has been a signatory to the UN Principles of Responsible Investing since 2010 and is also a member of the Responsible Investing Association of Australasia.
- Harbour is adding sustainability as an investment mega trend in our equities process
- We continue to find integration of ESG factors is a positive factor for returns
- An additional overlay of sustainability as a mega trend influence may provide better interaction and allocation of capital
Long term structural mega trends often determine the direction of asset markets, and which assets and sectors perform better. Harbour already considers four key mega trends as critical for long term investing including demographics, healthcare innovation, technology disruption and the growth in Asian middle class through urbanisation. We are adding sustainability as a fifth dimension for our fundamental analysis of investment opportunities.
Through time, regardless of short-term volatility in markets, changes in monetary and fiscal policy, and changing geopolitical settings, companies that benefit from positive structural changes tend to have greater pricing power and attract more capital than those on the other side of the street.
Harbour has added sustainability as one of its key mega trend investment considerations. Harbour’s research indicates that companies who take more responsibility from an environmental, social and governance (ESG) perspective may be more profitable and attract more capital than those companies that don’t.