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
Labour standards and environmental, social and ethical considerations
The Responsible Entity has delegated the investment management function (including ESG responsibilities) to the InvestmentManager and the Investment Manager has contemplated that ESG considerations may be taken into account in relation to theinvestments of the Fund. However, the Fund is not designed for investors who are looking for funds that meet specific ESGgoals. ESG considerations are integrated as part of the Fund’s investment process, but this does not mean the Fund ismarketed or authorised as an ESG product in Australia.
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. These examples of ESG considerations are provided for illustrative purposes and are not exhaustive.
Resolution Capital’s ESG risk integration approach is primarily focused on assessing and managing the potential financialimpact (e.g. reduced future cashflows and/or stranded asset risk) resulting from ESG risks on investment assets.
When reviewing potential investment opportunities for the Fund, Resolution Capital will assess the risk of a permanent loss ofcapital due to an ESG risk by identifying events that could occur as a result of an asset’s exposure to material ESG issues,assigning a probability to potential events, and assessing the probability and impact of potential events on the fair value of theasset. Companies that produce alcohol, tobacco or controversial weapons are excluded from the portfolio, since they areoutside of our investment universe.
In terms of the extent to which the ESG considerations are taken into account in the selection, retention and realisation ofinvestments, Resolution Capital does not apply a set methodology, and has no set approach to monitoring or reviewing theseESG considerations. Resolution Capital does not use a weighting system to apply a weight to ESG considerations. Additionally,Resolution Capital does not have a set time for monitoring or reviewing investments. As such, Resolution Capital has nopredetermined view about how far ESG considerations are taken into account in the selection, retention and realisation ofinvestments for the Fund.
ESG aspects aspects are ordinarily considered throughout the investment process as part of the fundamental research,investment selection and portfolio construction stages. There is a risk that relevant information will not always be available andthat this will impact the extent of ESG considerations that can be taken into account. The integration of ESG into the investmentprocess is also supplemented by Resolution Capital’s engagement policy and activities, which are designed to optimise theirability to affect outcomes and enhance investment decision-making. Resolution Capital’s stewardship activities include proxyvoting and it is the policy of Resolution Capital to vote on all proxy resolutions it has the ability to vote on. Should an investmentbe deemed no longer suitable due to ESG aspects Resolution Capital may choose to divest.
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 Property Securities Fund (Unhedged) – Series II (‘the Global Fund (Unhedged) II’) gives investors exposure to the underlying returns of some of the world’s highest quality real estate assets through a professionally managed portfolio of global real estate investment trusts (‘REITs’) and property companies.