Signatory to the Principles for Responsible Investment 

In May 2014 LEGACY AFRICA Fund Managers became a signatory to the United Nations – supported Principles for Responsible Investment (PRI). The signatory to which, is in line with our investment philosophy. Our investment philosophy and process are included in summary form in our website under the ‘Services, Approach’ tab. 

 

The essence of responsible investing requires cognizance of environmental, social and governance (ESG) factors. As a long-term investor, LEGACY AFRICA has integrated ESG considerations into our fundamental analysis. 

LEGACY AFRICA believes that ESG integration makes sense for long-term investors. ESG integration enables our decision making to be sustainable for the benefit of our clients. 

 

As current tenants to this world, it is important for us as people to ensure that our successors inherit a sustainable environment. A sustainable environment is one that has - balanced ecosystems; minimized pollution; protected natural sources of water; responsible utilization of energy sources; our population explosion being able to be catered for by earth’s finite resources; etc. 

 

Social factors are those that promote attainment of social justice and social equality. This is important for purposes of nations to live harmoniously in peace amongst and between them. Social challenges arise from a wide array of reasons, including – lack of respect for human rights; competition for finite natural resources (water, precious minerals, energy resources, land, etc.); prevailing demographics, i.e. Africa has a young population that ought to be able to occupy its time constructively and productively without undue hurdles.

 

Governance factors that are ideal are those that promote good corporate governance and good corporate citizenry. Governance matters from LEGACY AFRICA’s policy perspective are covered extensively in our website under ‘Publications, Policies, Proxy Voting Guidelines’.

 

What does it entail to be a signatory to the PRI? There are six principles that signatories have to commit to. These are denoted by the PRI as:

 

Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.

Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.

Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.

Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.

Principle 5: We will work together to enhance our effectiveness in implementing the Principles.

Principle 6: We will each report on our activities and progress towards implementing the Principles.

 

LEGACY AFRICA is committed to these six principles.

 

Written by the Legacy Africa Fund Managers Team

 

In This Issue

1. Welcome

2. Signatory to PRI

3. Asset Under Management Update

4. Comments & Suggestions

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