On 10 October 2019, Singular Asset Management (“SAM”) became a signatory of the United Nations-backed Principles for Responsible Investment (“UNPRI”). The UNPRI has defined responsible investment as a strategy and practice to incorporate environmental, social and governance (ESG) factors in investment decisions and active ownership.
As an investment management company, we recognise that responsible corporate behaviour with respect to ESG issues can generally have a positive influence on long-term financial performance of the investment portfolios. We endeavour to adopt good practices and policies endorsed by the UNPRI on responsible investment.
At SAM, we are guided by our Responsible Investing Policy which is line with the six (6) principles laid down by the UNPRI on the management of our investment portfolios. We are committed to the following:
- abiding by responsible investing practices that take into account environmental, social and governance (ESG) factors to enhance our understanding on the portfolio companies, while managing risk and generate sustainable long-term returns;
- actively engaging portfolio companies to discuss not only finance related matters, but also ESG related issues and their progress;
- encouraging responsible corporate behaviour as well as disclosure of information related in ESG factors in our public equity holdings; and
- reporting our responsible investment activities ESG efforts to the UNPRI on an annual basis.
Research and Analyse
We conduct focused in-depth research to understand the key ESG issues of our holdings/potential holdings. We then analyse these ESG issues at a company level and integrate the outputs into our research approach.
Identification and Evaluation
We identify and evaluate companies using our internally-developed ESG rating system by applying a risk based approach. This method of assessment which forms part of our investment process, enables our Investment Team to highlight areas for investigations or clarifications.
Active Ownership and Engagement
We continuously engage our holdings/potential holdings to discuss focus area where we prioritize key ESG issues. We encourage positive change in our holdings/potential holdings with regards to management of ESG issues to enhance long-term financial performance. As such, we actively participate in voting at annual and/or extraordinary general meetings of our holdings.