Devon Funds has released an inaugural sustainability report to track the manager’s progress against responsible investment goals.
Slade Robertson, Devon managing director, says the planned annual sustainability update will provide “clarity” on the group’s environmental, social and governance (ESG) investment practices as well as internal corporate metrics.
“Transparency is something that we strongly encourage in the companies that we own across our portfolios, and we apply the same level of expectation to ourselves,” Robertson says in the report.
Devon incorporates ESG factors in all of its funds but also launched a dedicated Australasian equities sustainability fund in 2020, following up last year with two global products (shares and bonds, respectively) managed by iconic US firm, Wellington Management.
The two global funds have accrued almost $40 million apiece since going live.
Earlier this year, the boutique also struck a distribution deal with the Māori-values Australasian equities fund, Tahito, which is offered by Devon sister firm, Clarity Funds. Both Devon and Clarity are part of the Investment Services Group that also houses JMI Wealth and Select Wealth Management.
Earlier this month the almost $20 million Tahito fund, headed by Temuera Hall, was certified by the Responsible Investment Association Australasia (RIAA).
Greg Smith, Devon head of retail, said the annual sustainability report – to be complemented by regular quarterly updates – is intended to show the firm “walks the walk” on ESG.
“We want to better-engage and communicate with investors on how the funds and Devon are tracking against sustainability measures,” Smith said.
The Auckland-based boutique reshuffled its ESG responsibilities recently after the departure of portfolio manager and sustainability specialist, Victoria Harris.
Mark Brown, Devon chief investment office, has taken charge of the Sustainability Fund previously managed by Harris. Patrick Washer has been promoted to assistant portfolio manager for the sustainability strategy while Alice Jones assumes the role as Devon ESG analyst.
Smith said Devon was dedicated to building its ESG resources as “demand for sustainable investment continues to grow”.
Fund managers globally are increasingly coming under pressure from investors and regulators to back-up sustainability claims with ESG reports now common offshore.
Harbour Asset Management issued its first sustainability report mid-2022, suggesting the trend is taking root here too.
Most NZ licensed fund managers will also have to upgrade non-financial factor reporting skills under new climate-change disclosure standards now in force. Annual climate-risk reports for entities captured by the law are initially due for different accounting periods starting from January 1 this year with some first-time exemptions.