Sustainable investing - the opportunity of integrity

You don’t need to choose between your investment performance and your beliefs. Our sustainable investment strategies have two aims: to provide attractive risk-adjusted returns, while maintaining our respect for the inherent value of every human being, and our responsibility to safeguard our planet.

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Sustainable portfolios

Our vision is simple: we embrace the good while limiting the bad

Our investment strategies are aligned to the United Nation’s Sustainable Development Goals (SDGs), offering exposure to companies that are best positioned to take advantage of the upside the implementation of these goals, in most economies, might bring.

Equally, we limit investment in companies that go against the vision of a sustainable future, so avoiding many risks associated with poor governance, ecological risks (including the risk of stranded assets), reputational risks, sanctions, or fines.

We believe that change leads to opportunity, and have adopted a thematic overlay to tap into the possibilities that technological change, habitual change, demographic change and environmental change bring.

Our sustainable investing approach addresses sustainability issues and reflects our solid investment principles.

Our approach

Harnessing the opportunity of our future needs

  • Embracing the good

    We pursue opportunities that allow us to invest in a sustainable future. Aligning to the UN SDGs creates investment opportunities with a foundation for improving equality, ending poverty, and protecting the environment.

  • Limiting the bad

    Some investment products and services have impacts that undermine the aims of the UN SDGs. We avoid investing in companies whose activities limit the potential of a sustainable future.

  • We use a screening process called Socially Responsible Investment (SRI) criteria to exclude companies that profit from the following:

    • Alcohol  • Civilian firearms  • Gambling  • Weapons  • Cluster bombs  • Landmines  • GMOs  • Tobacco  • Fossil fuels

The impact

Measuring our portfolio footprint

Our investment strategies aim to deliver superior risk-adjusted returns while considering the impact investments have on the environment and society. In order to gauge the strategy’s footprint, two measurements are built into the investment mandate.

  • To have a net positive alignment to the UN SDGs

    The strategy will be measured against the UN’s 17 SDGs in order to illustrate the positive footprint.

  • Maximum exposure of 2% to SRI exclusion criteria

    The percentage of the portfolio’s market value exposed to companies flagged for one or more SRI exclusion factor is restricted to 2%.

  • A transparent approach, brimming with opportunity

    No single solution can solve our future social and environmental challenges. However, considering environmental, social and governance factors in long-term financial planning is not only sensible, it could offer substantial opportunity, as the level of investment needed to meet various government commitments points towards growth in this industry.

Frequently asked questions

Nedbank Private Wealth

Are you truly global?

Yes, we genuinely have no ‘home bias’. We do not limit our investment options by having a pre-determined bias to any geography.

What is active currency management?

Active currency management means truly global asset selection and provides control and opportunity.

Do you include different alternative investments?

As a a boutique financial services company, we can access a wider range of opportunities that are not usually viable for larger investment managers.

How do you ensure the portfolios are sustainable?

We embrace the good and limit the bad. We align to the UN SDGs and limit exposure to companies and industries not contributing to a sustainable future.
A thematic overlay

We believe that change leads to opportunities

We use a thematic overlay so that portfolios can benefit from long-term global trends, as well as broader sustainable goals.

This introduces exposure to trends and is achieved by investing some of the portfolio into specific investments that target these themes and trends.

An example of this is the global trend towards demographic change, with an aging population, lower birth rates, and an expanding middle class. This has created investment opportunities in sectors such as care homes, healthcare, education, fintech and student accommodation.

On the environmental front, if we are to come close to achieving government targets, the level of investment needed is akin to that of the industrial revolution. No investor would want to miss out on that.

Other trends include habitual change and technological change, representing a wide range of opportunities such as music licensing, cyber security, and robotics.

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Monitoring investment performance

Keeping targeted risk-adjusted returns in view

Our sustainable portfolios have the same target returns as our responsible portfolios and the performance is monitored and reported in exactly the same way, via our Online Wealth Services and hard copy valuations.

Each strategy has its own targeted return range based on the risk profile. Our investment committee meets regularly to review the performance and make adjustments within the portfolio based on market conditions and opportunities.

Corporate social responsibility

Recognising the impact and taking action

We support projects that help reduce the impact we have on our local and global environment. We work closely with local charities to help improve the communities in which we operate and, more broadly, we partner with Ecologi to offset more than our collective carbon footprint puts back into the environment.

Related case studies

Read about more clients we have helped

We have helped countless clients with their financial needs – some straightforward, some complex. Our bespoke approach, where we really get to know our clients, allows us to offer solutions that other wealth planners and private banks aren’t able to.

Find out how we can help you

If you are interested in finding out more about sustainable investing, or would like to speak to an investment specialist, contact us today

Find out more about our teams in the UK, Isle of Man, Jersey and Dubai here

Frequently asked questions

Nedbank Private Wealth

What is Environmental, Social & Governance (ESG)?

The three pillars used to evaluate the impact on the environment, corporate behaviours, and sustainability of a company.

What is responsible investing?

Including ESG data analysis within the investment process and risk management, but not as part of a wider effort to invest in sustainable companies.

What are SRI exclusions?

Socially responsible investing (SRI) exclusions serve as a negative screen on ESG data. They are a widely accepted set of values that are used to exclude investments with these characteristics.

What is sustainable investing?

Positively and negatively screening the ESG data of potential companies as part of the investment process in order to achieve sustainability objectives.