Responsible Investing Overview
Abax Investments (Abax) is an owner-operated investment firm founded in 2003 dedicated exclusively to fund management. Abax manages equity, multi-asset, fixed income and hedge fund portfolios.
As an investment organisation, we have a fiduciary duty to act in the best long-term interests of our beneficiaries and believe that environmental, social and governance (ESG) issues can affect the long-term financial performance of investee companies.
Our Impact – Purpose Beyond Profit
Our purpose is to have a positive impact on our clients, stakeholders and society.
We continue to promote and build an inclusive business.
- Abax is committed to diversity across the company as we believe this enhances the performance of our business and leads to better decision making.
- We are a Level 2 contributor to broad-based black economic empowerment as per the Financial Sector Code.
Caring for society is embedded in our DNA. Abax is 16% owned by three charitable trusts established by our staff.
- The team at Abax are actively involved in the administration as well as ongoing work of the trusts, as part of their efforts to build a better future for South Africa.
- The Abax Development Trust focusses on Early Childhood Development (ECD).
- The Abax Foundation supports environmental and conservation related projects in South Africa.
We seek to be a responsible investor and continue to deepen our focus on stewardship and ESG integration in our investment process.
Responsible Investing Objectives
Our purpose is to have a positive impact on our clients, stakeholders, and society. We take seriously our role as custodians of client assets and Abax is committed to:
- Promoting the right values and culture within our organization.
- Incorporating environmental, social and governance (ESG) into our investment decision-making process.
- Building capacity and skills within the organization to enhance the identification and management of ESG and broader sustainable development issues.
- Engaging actively to push for beneficial change.
- Working with other stakeholders to promote sound governance and the management of ESG issues.
- Exercising our voting rights in a thoughtful manner to enhance the management of ESG and broader sustainable development issues.
- Promoting and developing enhanced reporting of ESG related information.
- Investing in businesses that are proactively managing their interactions with society and the environment.
ESG thinking is embedded in our business and investment process. We endeavor to invest in businesses that exhibit robust corporate governance, quality management, sustainable business models and the potential for solid growth in earnings and dividends over an extended period. To this end, ESG matters are integrated into our investment analysis to strengthen the decision-making process, better manage risk and ensure that investments generate long-term value in an ethical manner.
Our approach and commitment to ESG enhances our value proposition to our clients. We invite you to review our ESG approach in more detail in the links provided. Uploaded documents include all our internal ESG policies and reports, markedly our Responsible Investing Policy, Engagement Policy, Proxy Voting Policy, and our approach to CRISA. Our ESG engagement register shows notable encounters with corporate management teams on ESG related matters, and notes what the primary area of consideration in each engagement was.
Abax is a signatory to the PRI, a UN-supported network of investors working to promote sustainable investment.