WEALTH TALK SUMMARY - Impact investing from an Asian family office perspective
Jul 19, 2017
Speaking at Hubbis’ Malaysian Wealth Management Forum 2017 in July – Tuck Meng Yee of JRT Partners believes that impact investing is more than just a judgement call.
Impact investing is gaining momentum, according to Tuck Meng Yee, partner of JRT Partners, a Singapore-based family office and fund services group.
Yet finding the right investment fit is an integral and vital part of the process, he adds.
For him, impact investing is part risk, part return. But on top of this, he also wants to measure holistically what the impact is on people, society and the environment.
He also notes that his experience is that the portfolio has not suffered by implementing impact and ESG approaches.
Yee says that one of the main priorities in making an impact investment decision is the level of environmental, social and governance (ESG) – which he believes has three different sleeves: the company’s impact on the environment; the company’s impact on society; and the company’s impact on governance. Corporate social responsibility (CSR) is also embroiled in the decision-making, he adds.
He then looks to create his own framework from what is available. And when he “feels good” about the framework from an intellectual, emotional and physical stance, then he recommends the investment. He also stresses that time must be spent “on the ground”, as it is important to look at a project closely, as well as the team driving it.
For JRT Partners, for example, it avoids investing in the gaming, coal, palm oil, tobacco and defense sectors. The firm does invest in eco-resorts, agriculture (but no live beef exports), and social impact bonds.
A more holistic framework from CSR to ESG to socially responsible investing (or sustained investing) is the way forward, explains Yee, citing that this is how the industry can do more good overall.
Partner and Founder at JRT Partners
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