Magni Responsible Investing Services offers investors who are seeking portfolios both aligned with their values and with competitive investment performance access to Magni research and investment capabilities. Many have written about governance, from academics to research organizations to investment professionals, and have reported that governance is the driver of performance in responsible investing portfolios. Magni offers two ways to participate in good governance portfolios, at the country level and the corporate level.
Magni’s Sustainable Wealth Creation principles measure both the quality of the governance in a country as well as the country-level infrastructure for supporting good governance at the corporate level. Magni is the global leader of country-level research on corporate governance, and believes it is logical to start with the “G” in construction of ESG international portfolios. This is the foundation of Magni Global Portfolios. These portfolios use country-wide securities, such as ETFs, as country positions with the country allocations determined by the scores from Magni research. Portfolios can contain popular groupings of countries in the developed and emerging markets. Download our brochure entitled ESG Investing Should Start with the “G” to learn more about our country-level governance research.
Magni has taken the research methods used on good country-level governance and applied that to individual company research in the U.S. Through a license for the Arcturus model for corporate governance best practices from the Caux Round Table, Magni established the Sustainable Value Creation principles. Magni’s Corporate Governance Assessment is used to evaluate all of the stocks in the S&P 500 Index. This assessment analyzes roughly 300 factors on each company. We look at more than each company’s relationship with its shareholders and employees; Magni adds assessments of relationships with customers, suppliers, competitors, and communities in which a company operates. This approach provides a holistic analysis of governance as well as social aspects of ESG investing. The Magni Corporate Leaders Portfolio consists of the top 100 rated companies with good governance in the S&P 500 Index.
Working with leaders from major faiths, the Sustainable Value Creation principles are enhanced with guidance from the faiths. Traditional portfolios incorporating religious considerations tend to focus on avoiding companies that were determined to be inconsistent with religious guidance (i.e., negative screening). Magni’s Catholic Values Portfolio and Islamic Stewardship Portfolio are based on the consistency of company governance with religious screening (i.e., positive screening).
The Catholic Values Portfolio is based on chapters 7 & 8 in Catholic Social Teachings which contains the Church’s guidance on governance.
The Islamic Stewardship Portfolio was developed alongside imams and is considered to be the only portfolio that incorporates guidance from the Maqasid.