Dalton Nicol Reid signs United Nations Principles for Responsible Investing

Friday, August 07 2009

Dalton Nicol Reid portfolio management has become a signatory to the United Nations Principles for Responsible Investment (UNPRI).

The UNPRI aim to help investors integrate consideration of Environmental, Social and Governance (ESG) issues into the investment making decision process, and thereby improve long-term returns to beneficiaries.

“We believe investing responsibly with regard to environmental, social and corporate governance is ethically important and, in addition, will provide heightened long-term returns for our investors,” said Dalton Nicol Reid chief executive officer, Harley Dalton.

Mr Dalton said the Group now adopts the UNPRI investment principals across all its investment strategies having established in 2005 a dedicated Australian Equities “Virtus” portfolio which avoids investment in companies judged to have involvement in pornography, gambling, armaments and tobacco.

“Our Australian Equities “Virtus” strategy has outperformed the benchmark over the last 12 months by 10.62 per cent. Dalton Nicol Reid signed the United Nations Principals for Responsible Investing in July and now incorporates ESG screens in the investment process of all its portfolios,” said Mr Dalton.

For the year ending July 2009 Dalton Nicol Reid’s Australian Equities “Virtus” portfolio (Virtus being Latin for ‘goodness’) outperformed the ASX S&P Accumulation Index by 10.62 per cent before fees. Over three the Virtus portfolio has outperformed the benchmark by 7.76 per cent before fees.

“We are very pleased with the performance of the Virtus portfolio and are already seeing demonstrated benefits in using the UNPRI principals in our mainstream investment processes and across our business as a whole,” said Mr Dalton.

Based in Brisbane and established in 2001, Dalton Nicol Reid is one of Australia’s most experienced, and one of the largest, independent Managed Account providers. Dalton Nicol Reid manages approximately $500 million.


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Notes to editors

About the United Nations Principles for Responsible Investing

In early 2005 the United Nations Secretary-General invited a group of the world’s largest institutional investors to join a process to develop the UNPRI. Individuals representing 20 institutional investors from 12 countries agreed to participate in the Investor Group. The Group accepted ownership of the Principles, and had the freedom to develop them as they saw fit.


The Principles

  1. The Manager will incorporate ESG issues into investment analysis and decision-making processes.
  2. The Manager will be active owners and incorporate ESG issues into its ownership policies and practices.
  3. The Manager will seek appropriate disclosure on ESG issues by the entities in which it invests.
  4. The Manager will promote acceptance and implementation of the Principles within the investment industry.
  5. The Manager will work together to enhance its effectiveness in implementing the Principles.
  6. The Manager will report on its activities and progress towards implementing the Principles.


Further information about the United Nations Principles for Responsible Investing can be found at www.unpri.org


IMPORTANT NOTE: This information has been prepared by DNR AFSL Pty Ltd ABN 39 118 946 400, an Australian Financial Services Licensee, Licence Number 301658. Whilst, Dalton Nicol Reid has used its best endeavours to ensure the information within this document is accurate it cannot be relied upon in any way and recipients must make their own enquiries concerning the accuracy of the information within. This document is not intended to provide you with personal advice and in providing this information, Dalton Nicol Reid has not taken into account your particular investment objectives, financial situation or needs. You should assess whether this information is appropriate for your particular needs, either by yourself or with your adviser. Dalton Nicol Reid expressly disclaims any responsibility or liability to anyone who acts or relies upon anything contained in, or omitted from, this document. Past performance is not indicative of future performance. Total returns shown are based on Dalton Nicol Reid’s model portfolio and have been calculated before taking Dalton Nicol Reid’s fees into account. No allowance has been made for taxation.
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