21 years of responsible investing in South Africa: Key investment strategies and criteria

Abstract

The year 2013 marked the 21st anniversary of responsible investing (RI) in South Africa. No systematic analysis of the nature of RI strategies and criteria has, however, been conducted. Content analysis of the investment mandates of 73 RI funds has revealed that the majority of asset managers employ impact investing strategies which address social issues such as infrastructure development and economic empowerment. Semi-structured interviews with eight experts in the RI field have highlighted growing interest in impact investing and screening strategies. If RI in South Africa is to reach its full potential, then a broader range of investment strategies and criteria needs to be adopted. Asset managers can capitalise on gaps in the current RI offering by creating RI-orientated property funds, dedicated green funds, and funds which employ a best-in-sector screening strategy. A clear need for focused RI research, training and education in South Africa has furthermore been identified.