How we evaluate products
Responsible Investment strategies, processes, practices and disclosures are assessed against the eight criteria for product certification in the Responsible Investment Standard and accompanying Guidance and Assessment Notes.
What this symbol means
General certification: This Symbol signifies that a product or service offers an investment style that takes into account environmental, social, governance or ethical considerations, and that it adheres to the operational and disclosure practices required under the Responsible Investment Certification Program for the category of Product.
<span class="text-size-xxsmall">The content on this webpage is provided by Responsible Investment Association Australasia Ltd (ACN 641 046 666, AFSL 554110). For more information refer to our Financial Services Guide. Certain content provided may constitute a summary or extract from the offer document of a financial product. Any general advice has been provided without reference to your investment objectives, financial situation or needs. If the advice relates to the acquisition of a particular financial product for which an offer document (such as a product disclosure document) is available, you should obtain the offer document relating to the particular financial product and consider it before making any decision whether to acquire the product. Past performance does not necessarily indicate a financial products’ future performance. To obtain information tailored to your situation, contact a financial adviser.</span>
Themes & Issues
Society
Environment
<span class="text-size-xxsmall">For RIAA’s definitions of the themes included and issues avoided, please view this guide. Product-specific exclusion criteria and practices may vary. You can find these by referring directly to the product provider.</span>
Overview
Resolution Capital has a long history of taking a responsible approach to investing and places paramount importance on protectingits clients’ interests. Resolution Capital has been a signatory to the PRI (www.unpri.org) since 2010 and a participant in the UNGlobal Compact since 2019.
Environmental, Social and Ethical (incorporating corporate governance) (‘ESG’) considerations are an integral part of ResolutionCapital’s investment philosophy. Resolution Capital believes these initiatives benefit the broader community and that strong ESGpractices of the companies in which the Fund invests are likely to be additive to their performance and lead to investors ultimatelybeing rewarded through superior investment outcomes.
Resolution Capital integrates ESG considerations into its investment process to align itself with the six Principles of the PRI andincorporates ESG factors in stock analysis and as discussion points for broader engagement activities. Examples of ESG riskswhich may be considered by Resolution Capital include poor workplace health and safety, high carbon emissions and poorcorporate governance. Resolution Capital’s ESG risk integration approach is primarily focused on assessing and managing the potential financial impact (e.g. reduced future cashflows and/or permanent impairment of asset value) resulting from ESG risks oninvestment assets. When reviewing potential investment opportunities for the Fund, Resolution Capital will assess the risk of apermanent loss of capital due to an ESG risk by identifying events that could occur as a result of an asset’s exposure to materialESG issues.
In terms of the extent to which the ESG considerations are taken into account, Resolution Capital has a framework it uses toassess ESG but does not apply a set methodology for taking such ESG considerations into account. Resolution Capital does notuse a weighting system to apply a weight to the standards and considerations.
Resolution Capital does not have a specific methodology for how labour standards considerations are taken into account in theselection, realisation and retention of the Fund’s investments. In practice, Resolution Capital records labour disclosures whereavailable, and takes into consideration responsible investment and labour standards frameworks, including UN Principals ofResponsible Investment, UN Global Compact and UN Guiding Principles on Business and Human Rights to the extent they have afinancial impact on the Fund’s investment.
The integration of ESG into the investment process is also supplemented by Resolution Capital’s engagement policy and activities,which are designed to optimise their ability to affect outcomes and enhance investment decision-making. Resolution Capital’sengagement activities include proxy voting. It is the policy of Resolution Capital to vote on all proxy resolutions it has the ability tovote on.
The Resolution Capital polices relating to the manner in which ESG considerations are incorporated into the investment processcan be accessed on www.rescap.com/esg/ or free of charge by contacting Resolution Capital on 1300 737 240.
Description
The Resolution Capital Global Listed Infrastructure Fund - Class B (Hedged) (the ‘Fund’) is focused on companies which own physical assets or concessions which provide essential services. This may include water and electricity utilities, renewables, airports, toll roads, ports, railroads and telecommunications infrastructure. These assets typically have high barriers to entry, require significant capital investment as well as generate long dated and predictable cashflows.