IML signs UN PRI
Thursday, 20 November 2008 12:05pm
Investors Mutual Limited (IML) has signed the United Nations Principles for Responsible Investment (UN PRI), adding more than $4 billion in funds under management to the burgeoning responsible investment pool of assets.
Tony Richard-Preston, IML senior investment manager, said the principles complement the firm's active long-term investment strategy.
"[IML's] investment philosophy is based on the premise that a company's share price will eventually reflect its underlying value. The key influences on a company's value are the environmental, social and governance [ESG] issues," he said.
"In this way, companies with good ESG records are likely to be good for underpinning above-average returns for our investors."
Richard-Preston said the firm would have no problems integrating the principles into its business. "IML actively votes its stock holdings with reference to best practice corporate governance principles," he said.
"Specifically, IML recognises that the earnings of companies with a good ESG record, among other factors, are likely to be less volatile and therefore more predictable in nature."
The UN PRI includes more than 68 signatories representing over $23 trillion in assets.
Michael Hobbs
