Our Environmental Social and Governance (“ESG”) Policy applies to the Manager, Property Manager, Investment Committee and Board Members of FWHRE with regard to the Fund’s investments and in the management of the Fund generally.
Our core principles ensure that the Fund is sustainable over the long term and meets the requirements for ethical investors by adopting a pragmatic and proprietary approach to sustainable investment which embraces ESG considerations.
Stage 1: The focus is on identifying High Quality companies. In essence, trying to ascertain: "Is it a good business?". Once a potential investment has been identified, an analysis of the business, its industry and the investment case takes place. As part of this process, Quality, ESG Checks and Financial Modelling is undertaken. If after analysis and discussion the Investment Committee is confident in the long‐term credentials and outlook for the business, then a decision is made on whether it should proceed to the secondary evaluation stage.
Stage 2: Focuses on answering the question: "Would it be a good investment?". Having established that a company meets the “Quality” criteria, valuation work is then undertaken to work out the intrinsic value of the business, reviewing its financials, dividend history and considering the risk factors.
FWHRE is invested predominantly in directly held physical properties. A strong emphasis is placed on the quality of the lease covenant, financial strength of the tenant, length of the lease, type of lease & market relatedness of passing rent, and generally whether it is a good marketable property.
The Fund has adopted guidelines to inform its response to relevant environmental standards, such as the type, age and substance of buildings that it is willing to own, as well as the nature of the tenant business that underpins the leases over those properties. To a large degree, this criteria is already entrenched in the investment policy of the Fund and the acquisition filter and furthermore are covered in a comprehensive due diligence assessment, including an environmental assessment carried out by independent specialists, when the property is considered for acquisition. The Fund’s Property Manager monitors the performance/actions of tenants in line with the terms of their leases and encourage adherence to environmental policies. They would also seek environmental good practices from any incoming tenants.
FWHRE has no direct employees. In addition to its investors, the main stakeholders are its property tenants and third party service providers. FWHRE’s Social approach focuses on building positive relationships with stakeholders and responding to issues that affect them. To this end there is regular and routine interaction with tenants, investors and REIT management teams as well as on site property inspections. Bribery & Corruption is specifically incorporated in the Fund’s governance policies.
FWHRE’ is focussed on the long‐term interests of its investors and upholding high standards of corporate governance forms an integral part in achieving this goal. As a regulated entity FWHRE is subject to the Collective Investment Schemes (Regulated Fund) Regulations 2017 and oversight by the Isle of Man Financial Supervision Commission (IOMFSA). Furthermore, as it is listed on The International Stock Exchange (TISE), FWHRE must also abide by the TISE Listing Rules.
In accordance with the Regulated Fund regulations, the Fund’s Manager is licensed by the IOMFSA to act as a manager of regulated funds and its Custodian is licensed to act as fiduciary custodian by the Jersey Financial Services Commission.
The Manager maintains policies and procedures to comply with the applicable regulatory reporting requirements and to also address and manage any conflict of interests, as and when they arise.
FWHRE is committed to being financially secure, so it’s investors can rely on it for the long term. In order to be a sustainable business the Board understands the views of its key stakeholders and considers their interests in discussions and decision making processes.
FWHRE understands the importance of maintaining the right governance structure and its board comprises of a well‐balanced group of Non‐Executive and fully independent Directors.
To view our Environmental Social and Governance ("ESG") Policy please click here to download