SEDCO Capital outperforms industry peers in responsible investing, says UN PRI
Asset manager SEDCO Capital has outperformed its peers in six out of seven measures of responsible investing and integration of environmental, social and governance (ESG) factors, according to the UN-supported Principles for Responsible Investment (PRI).
In its annual assessment report, the PRI, the world’s leading proponent of responsible investment, awarded SEDCO Capital the highest rating (A+) in five categories and the second highest (A) in another, performing above its peers in each and improving its 2018 score in two areas. There are six rating levels, ranging from A+ to E.
Responsible investment is increasingly shaping the asset management industry as opportunities to invest based on ethical principles continue to grow. More than USD30 trillion of investable assets globally included sustainability in their investment analysis at the start of 2018, growing 34 per cent worldwide since 2016. Results from signatories of the PRI initiative suggest that responsible investment strategies contribute to greater risk-adjusted returns in the long-term.
The PRI 2019 Assessment Report awarded SEDCO Capital the top grade in five out of seven possible categories. The global asset manager’s approach to strategy and governance and its active management and engagement in relation to private equity were given the highest rating, as was its approach to the selection, appointment and monitoring of managers in both listed and private equity, as well as in ESG integration within listed equity. For property investment strategies it achieved an A-rating, also beating the peer benchmark.
Founded in 2005, the PRI is comprised of a voluntary group of investors working to achieve six fundamental principles of investment. Its annual assessment report, launched in 2012, compares improvements in signatories’ ESG integration activities year-on-year, across asset classes, and with peers at local and global level.
Samer Abu Aker, Chief Executive Officer at SEDCO Capital, says: “We are extremely pleased to receive these outstanding results in the UN PRI annual assessment, an outcome of our determination and dedication to improving our investment processes. I would like to thank all our team members for this valuable achievement and for their ongoing and consistent hard work to deliver exceptional returns to our investors. Above all, we thank our shareholders and board members for their trust and support, which reinforces SEDCO Capital’s position as the leading Shariah and ethical asset management firm globally.”
Christian Gueckel, Chief Risk Officer at SEDCO Capital, says: “Since 2010, we’ve been a leading proponent of responsible investing and an innovator in Shariah-compliant approaches to global asset management. By the PRI’s measures, our approach to responsible investing far exceeds the industry standard.”
Supported by the UN, the PRI works with its international network of signatories to put the six Principles for Responsible Investment into practice. There are more than 2,500 signatories from over 60 countries, representing over USD85tn of assets. SEDCO Capital became the first Shariah-compliant, as well as the first Saudi Arabia-based asset manager to sign the six Principles in July 2014.
SEDCO Capital follows a proprietary investment strategy called Prudent Ethical Investing (PEI), which combines its Shariah-compliant investment approach with ESG principles across all its investment opportunities. Investment strategies managed by SEDCO Capital comprise five key building blocks: negative screening, integration of environmental, social and governance factors, sustainability themes, proxy voting, as well as active ownership and engagement.