Kotak Mahindra Asset Management Company Ltd (KMAMC) nowadays announced the launch of ‘Kotak ESG Opportunities Fund’, which will concentrate on Environmental, Social and Governance (ESG) aspects and the Principles for Responsible Investing (PRI). The New Fund Offering (NFO) opens for subscription on 20th November, 2020 and closes on 4th December, 2020. It is an open-ended equity scheme, and is appropriate for investors in search of lengthy-term capital development as effectively as investment in the portfolio of predominantly equity and equity-connected securities of businesses following the ESG criteria.
According to the enterprise, KMAMC is the very first asset management enterprise to sign the United Nation’s Principles for Responsible Investment (UNPRI), major the narrative of accountable investing in India. Taking ahead its philosophy of delivering optimum returns on a sustainable basis for its investors, the Kotak ESG Opportunities Fund, which will be managed by Harsha Upadhyaya, will invest in businesses primarily based on monetary parameters and non-monetary aspects such as Environmental, Social and Governance as a portion of its investigation approach to determine material dangers and development possibilities.
To assess ESG functionality of an investee enterprise, broadly, Kotak ESG Opportunities Fund will appear at policies, practices and disclosures of every ESG pillar i.e. for environmental functionality, it will be power efficiency measures, waste management like e-waste management, carbon & greenhouse gas (GHG) emission footprint, and renewable power use for social functionality it will be employee functioning situations, welfare & coaching, and overall health & security requirements and for assessing governance functionality, in addition to corporate governance practices and disclosures as essential below the Companies Act, 2013 and SEBI’s (LODR) 2015, it will be whistle-blower and anti-corruption policy, no youngster labour policy, anti-sexual harassment policy, diversity and inclusivity policies and practices and so on.
Harsha Upadhyaya, CIO – Equity & President, Kotak Mahindra Asset Management Company Limited, mentioned, “Globally, investors are increasingly evaluating Environmental, Social and Governance (ESG) performance and disclosures. Put simply, performance of all three bottom-lines – Profit, Planet (environment) and People (social) are equally important as against looking at only the Profit bottom-lines few years back. ESG investment principles look even at ‘how companies make money’ and not just at ‘how much money the company makes’. Kotak ESG Opportunities Fund will focus on the ESG principles and disclosures of the investee company with the flexibility of investing across market capitalisation range with the aim to create sustainable wealth for our investors.”
KMAMC will use Sustainalytics ESG Risk Ratings – a major international provider of ESG investigation, ratings and information – to help its Kotak ESG Opportunities Fund.