One of our core investment beliefs at Fisher Funds is to only invest in companies that act responsibly.  What does this mean?  This means that we will not invest in companies that cause unconscionable harm.  This means that if companies engage in behaviour that compromises acceptable environmental, social or governance standards we will not maintain an investment in the company.

How this principle is implemented in our investment process is detailed in our Responsible Investment Policy.  This is available on our website – check it out.

We have seen this policy come into play in our investment process this month with our decision to sell all shares in Australian listed miner BHP Group Ltd (“BHP”).  As a significant producer of thermal coal, we have deemed BHP to be in contravention of our Responsible Investing Policy.

As is so often the case when principles collide with the ‘real world’, the judgement call on BHP’s breach of this policy is nuanced.

First, some history.  As two of the highest quality diversified mining companies on a global basis, Fisher Funds has been invested at various times in both BHP and its Australian stablemate, Rio Tinto Ltd (“Rio Tinto”) over the past few years.  Both companies have high quality assets.   Both companies have been soundly managed in recent years.  Both companies have been disciplined and sensible in managing the cash windfall from the recent commodity boom.  Their shareholders have been rewarded.

Read more >