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At AlbaCore, we focus on the long-term. As one of Europe’s leading alternative credit specialists, we invest in private capital solutions, opportunistic and dislocated credit and structured products. 

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Specialist in Asia Pacific, Japan, China, India and South East Asia and Global Emerging Market equities.

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Our philosophy is very simple. We are constantly searching for high quality businesses and when we acquire them, we will work relentlessly with them to create long-term sustainable value through innovation, ESG-led and proactive asset management.

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Leader in active quantitative equities across Australian equities, global equities, emerging markets and global small companies.

Backed by a unique blend of research, portfolio construction and risk management, focused on uncovering original insights and translating them into investment strategies that are active and systematic, aiming to generate alpha.

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Specialists in equity portfolios in Asia Pacific, emerging markets, global and sustainable investment strategies

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RQI Investors

Approach to responsible investment

ESG integration

RQI Investors, along with our parent company First Sentier Investors (FSI), hold the following beliefs on ESG issues:

  • ESG issues are sources of long-term risk and return therefore considering ESG issues leads to better analyses and investment decisions.
  • The execution of ownership rights in relation to proxy voting and collaborative engagements can improve our understanding of ESG issues that companies face as well as help drive improvements. Therefore, ultimately protecting and enhancing the value of our clients’ investments.
  • Integrating ESG in all mandates enhances the quality of our investment processes as ESG issues, when poorly managed, will create long-term material impacts for society and the environment.

Learn more the about the four pillars: Exclusions, Risk controls, Alphas and Stewardship

1. Exclusions

Standard FSI exclusions*:

  • Tobacco production and cigarette manufacturing**
  • Controversial Weapons^
  • Global Sanctions^^

Other potential exclusions that can be tailored to clients (note these are examples only):

  • Coal: Exclude where thermal coal mining/extraction >10% revenue, or >10% of power generation capacity
  • Oil Sands: Exclude where oil sands >10% of oil and gas mining/extraction
  • UN Global Compact Violators#

2. Risk controls

Tailored potential carbon reductions or other ESG risk penalties

3. Alphas

Driven by economic and fundamental insight along E, S and G dimensions.

Integrated insights forming part of our diversified alpha model:

  • Level and change in Carbon Efficiency
  • Change in Governance Quality
  • Multiple dimensions of Governance (Aust. Small Cap)
  • Reputational and Litigation Incidents
  • Board and Team Diversity

4. Stewardship

  • Collaborate with FSI active teams on proxy voting and ESG issues
  • Participate in firm-wide sustainability committee designed to share and develop best practise on ESG integration
  • Direct and collaborative engagement with other FSI teams and external collective initiatives
  • Particpate in Investors Against Slavery and Trafficking (IAST) APAC, Climate Action 100+, 40:40 Vision

Please note these features are examples only. The client can customise the portfolio as they wish.

 

* Companies in scope for exclusion are entities that derive revenue directly from the activity, or that own more than 50% interest in entities (not including joint ventures) that derive revenue directly from the manufacture of cigarettes and other tobacco products (not including e-cigarettes and vaping), and the manufacture of certain types of controversial weapons. Where available, revenue derived from a specific activity is based on company-reported revenue within the financial statement. Where not available, revenue is derived from the company’s segment reporting or based on an analyst’s assessment.

** 0% revenue threshold.

^ 0% revenue threshold where CWS is defined as anti-personnel mines, cluster munitions, white phosphorus, biological and chemical weapons and certain types of nuclear weapons.

^^ Where companies are flagged under UN, US, EU or Australian sanctions

# Companies deemed non-compliant with global standards per our data vendors.

ESG research

ESG research has been, and continues to be, a strategic initiative for RQI Investors. We have an extensive database of ESG data and metrics licensed from third parties which we use in our research and in some cases as part of our investment process, or customised client solutions.

"The incorporation of ESG into the RQI Investors investment process remains an important and ongoing area of research for our business."

Andrew Francis

Chief Executive, RQI Investors

Case studies

We believe that a strong commitment to stewardship is an essential component of a strong approach to responsible investment, and that embedding responsible investment into the core of our investment activities is in the best long-term interests of our clients. For more than a decade we have systematically and progressively improved our practices and processes across our investment capabilities globally.

Climate change statement

RQI Investors manages a variety of strategies including market cap index portfolios, value weighted funds and market cap aware active funds. Across all these funds, there are different climate-related risks that impact the team’s portfolios.

Key climate-related risks in our team’s portfolio

How we identify these risks

How we address these risks

The targets and objectives we have set

Carbon footprint

For more information, see our Carbon Footprint explainer


The dashboard is best viewed in full screen. Click on the icon on the dashboard bottom right

Proxy voting

RQI Investors understands its’ stewardship responsibilities of managing its client’s assets including acting in the best interest of clients when monitoring corporate events and client proxies. The team will generally vote its proxies in accordance with proxy adviser Glass Lewis’ ESG guidelines to promote high standards of corporate governance which are aligned with clients’ interests.

An additional level of review of proxies may be undertaken where the meeting includes a contentious issue or a relevant ESG issue. This review is undertaken using input from leading proxy voting advisors such as Glass Lewis and Ownership Matters, ESG research from providers such as RepRisk, ISS ESG, Sustainalytics or MSCI, advocacy groups, the FSI Responsible Investment team, other investment teams in FSI, and other sources as appropriate. The conclusions of this additional review are documented and considered by a Peer Review Committee, comprised of the RQI Investors portfolio managers. The Peer Review Committee determines how the proxies are voted by considering the best interests of clients. For further information, please see RQI Investors' separate Proxy Voting Policy.

Australian Equity

Proxy voting history by type of resolution

The table below contains the proxy voting history for the team by issue type. The chart provides the same information for FY2022.

Voting Independence 

The chart below shows the number of times the team have voted in each region.

Global Equity

Proxy voting history by type of resolution

The table below contains the proxy voting history for the team by issue type. The chart provides the same information for FY2022.

Voting Independence 

The chart below shows the number of times the team have voted in each region.

Proxy voting by region

The chart below shows the number of times the team voted in each region and the percentage of votes against management recommendations, against our proxy advisors' recommendation, or against both. The purpose of this table is to show the regional difference in voting patterns and governance concerns.

Proxy voting information is as at 31/12/2022
Source: First Sentier Investors / CGI Glass Lewis

Disclaimer

Any targets (including, but not limited to, the net zero targets) on this webpage are based on (i) available information and representations made to First Sentier Investors by third parties, including, but not limited to, portfolio companies; and (ii) assumptions made in relation to future matters such as the implementation of government policy in climate-related areas, enhanced future technology and the actions of portfolio companies. Such information and representations may ultimately prove to be inaccurate and such future matters may not ultimately be realised. As such, First Sentier Investors cannot guarantee the achievement of these targets. These targets are subject to ongoing review and may change without notice.

Any ESG related commitments, are current as at the date of publication and have been formulated by the relevant investment team in accordance with either internally developed proprietary frameworks or are otherwise based on the Institutional Investors Group on Climate Change (IIGCC) Paris Aligned Investment Initiative framework. The commitments are based on information and representations made to the relevant investment teams by portfolio companies (which may ultimately prove not be accurate), together with assumptions made by the relevant investment team in relation to future matters such as government policy implementation in ESG and other climate-related areas, enhanced future technology and the actions of portfolio companies (all of which are subject to change over time). As such, achievement of these commitments depend on the ongoing accuracy of such information and representations as well as the realisation of such future matters. Any ESG related commitments are continuously reviewed by the relevant investment teams and subject to change without notice.

To the extent this material contains any measurements or data related to ESG factors, these measurements or data are estimates based on information sourced by the relevant investment team from third parties including portfolio companies and such information may ultimately prove to be inaccurate.