Responsible investing

Magellan is committed to responsible investment. Environmental, Social and Governance (ESG) issues are a natural component of Magellan’s investment process, as gaining a robust understanding of these issues is a key part to assessing the outlook for future earnings and risks. Magellan’s Responsible Investment Principles outlines and summarises Magellan’s approach to responsible investment, ESG integration, engagement and proxy voting. 

Over the years, we have taken steps that highlight our commitment to responsible investing:

  • In 2012, we became a signatory to the United Nations-sponsored Principles of Responsible Investment, the globally recognised accord for responsible investing.
  • In 2016, we launched the first of a series of Sustainable strategies that implement a proprietary low-carbon overlay. We offer these strategies because we expect the world will take more steps to address climate-change risks by reducing carbon emissions and these measures have the potential to profoundly alter business models.
  • In 2017, Magellan became a signatory of the PRI’s Montreal Pledge. Under the Pledge, Magellan commits to measure and disclose the carbon footprint of its actively managed investment portfolios. The latest disclosures can be found in the table below.
  • In 2017, Magellan became a signatory to the Responsible Investment Association of Australia.
  • In 2018, Magellan became a founding signatory to the Tobacco Free Finance Pledge.

 

    Carbon footprint as at 30 June 2018
(tonnes co2e per $us million revenue)
Magellan Global Fund   26.2
Magellan High Conviction Fund   28.6
Global Sustainable strategy   23.1
US Sustainable strategy   31.4
MSCI World Index   198.4

Note: Portfolio carbon intensities are calculated using the weighted average carbon intensity method.

To learn more about how Magellan considers ESG issues and our approach to proxy voting, click on the relevant Magellan policy below: