Fullerton’s commitment to sustainability
Fullerton Fund Management (“Fullerton”) is a signatory to the UN PRI and we are committed to the UN PRI’s Six Principles. As an active fund manager and Asia specialist, Fullerton assesses companies holistically, including an assessment of material environmental, social and governance (“ESG”) risk and opportunities.
We have chosen the United Nations Sustainable Development Goals (“SDGs”) as the foundation for our sustainability strategy, both at the corporate and investment levels. The SDGs aim to tackle the key sustainability issues facing our planet, some of these being particularly acute in Asia. As an Asia-based investment manager, Fullerton has a role to play in this global effort.
Read our Sustainability Policy here.
Integrating ESG factors into our investment philosophy
We believe integrating ESG factors into our research and analysis gives us a more thorough understanding of the risks and value drivers that may impact the companies we invest in. Top down and bottom-up fundamental research is at the heart of our investment philosophy, and ESG factors are integrated within our investment process.
How ESG fits into our investment framework
Fullerton specialises in Asian markets. As an active fund manager, we assess companies holistically, developing an intimate understanding of their exposure to ESG risks and opportunities in these markets. We strive to strengthen the inclusion of ESG factors in our investment research, analysis, decision making, portfolio management and engagements.
To achieve this goal, we have combined an ESG research framework available in the market with our unique insights as an active fund manager.
Our approach to engagement
Engagement is a fundamental part of our investment process. As active managers, we believe that positive engagement and open dialogue with management allows us to develop a more informed view on the companies and the way they operate. It provides us the opportunity to encourage companies to improve the management of their ESG issues, particularly where improvements in policies and practices can be expected to enhance and protect shareholder value.
Managing climate risk in investment portfolios
“Climate change is the defining issue of our time. As an asset manager, we are committed to manage climate related risks and opportunities in our funds and to promote the TCFD’s recommendations on climate-related financial disclosure in the companies we invest in.”
– Jenny Sofian, CEO
Fullerton is proud to express its support for the Task Force on Climate-related Financial Disclosures (TCFD) and its recommendations.
The TCFD is a set of voluntary disclosures to increase market transparency and awareness regarding climate-related risks. Created by the Financial Stability Board in 2015, it applies to both corporates, banks, asset owners and fund managers. The number of TCFD supporters globally have surpassed 1,700 – this signifies a major shift among market participants in acknowledging that climate change present a financial risk.
Read more about the TCFD here.
Our participation in industry ESG initiatives
Singapore Green Finance Centre
Fullerton is a founding member of the Singapore Green Finance Centre (SGFC).
The SGFC is an initiative by the Monetary Authority of Singapore (MAS) in collaboration with Imperial College of London and Singapore Management University (SMU). The SGFC will draw on the respective strengths of Imperial and SMU in climate science, financial economics, and sustainable investing – equipping professionals with new skills and developing a strong pipeline of green finance talent. Its multi-disciplinary research and training will enable financial institutions, corporates, and policymakers to improve the management of environmental risks, develop financial solutions to promote environmental sustainability, and design policies for a sustainable future.
Read more about the SGFC here.
Singapore Stewardship Principles (“SSP”) for Responsible Investors
Fullerton is proud to affirm our support for the SSP. The SSP aims to enable investors to be active and responsible shareholders. They provide a view on the activities and functions that stewards should carry out, and how these should relate to the boards and management of investee companies. We are in the process of identifying other relevant bodies and working groups.
Asia Pacific Financial Forum (“APFF”) ESG Investment Working Group
Fullerton is also part of the APFF ESG Investment Working Group (“ESGWG”) since March 2020.
The APFF is a regional platform for collaboration among public sector, private sector and multilateral institutions to help accelerate the development and integration of financial markets and services in the APEC region. The ESGWG was launched under the APFF Insurance and Retirement Work Stream, which aims to promote insurers and pension funds’ roles to support sustainable, resilient and inclusive growth and development of the Asia-Pacific region.
Read more about the APFF here.