Roy Keenan from Yarra Capital Management shares insights with James Dunn from The Inside Network on the role of active management. The Inside Adviser
After the Hayne Royal Commission many advisers decided to steer away from large dealer groups in favour of becoming self-licensed. In the last six months, however, that trend has taken an abrupt turn.
HMC Capital leans into community connection
Alternative asset manager HMC Capital is banking on social connection as a core thematic to drive its ethical, social and governance (ESG) push for the year ahead, with the group focusing on responding to essential local and regional community needs in the way it builds and operates its swag of commercial real estate assets.
In its latest sustainability report HMC details the kind of comprehensive ESG strategy typical of a fund manager that appreciates the value of corporate responsibility – both to the group’s three funds and the broader environment.
While environmental impact and strong governance are core pillars of the group’s plan, the focus on creating a positive social impact through connection and respect mark the money manager as one intent on creating a harmonious and symbiotic relationship between its assets and the community around them.
Over two thirds of HMC’s ~$6 billion funds under management sits within its ASX-listed ‘HomeCo Daily Needs REIT’, which invests in convenience-based assets across the target sub-sectors of neighbourhood retail, large format retail and health and services.
Across 53 properties – in large part shopping centres and retail service outlets – the group maintains a thematic focus on providing local and regional infrastructure that helps community members live their way.
“Through partnering with key stakeholders in the communities where we operate, we can enhance our social impact across our national footprint,” the report states, adding that fund executives put together a “social impact framework” to underpin both its investment and management decisions.
“Our focus on investments that meet community needs means that we can deliver a positive social impact through our operations,” the report notes. “We recognise that real impact can be difficult to measure, but that doesn’t mean the effort is unwarranted.”
At the beginning of the property asset acquisition phase, this focus translates to a detailed analysis of social needs in the communities those assets are located, “with a view to ensuring we respond to essential health, wellness, and daily needs of communities”.
The focus then shifts to strategic partnerships, whereby HMC’s Capital Foundation (a charitable foundation designed to increase the delivery of its social commitments), combined with a separate initiative created to extend the group’s positive social impact beyond its operations called CommunityCo, work directly with community members and groups.
Once the groundwork is laid, ongoing collaboration with the community and subsequent evaluation measures help HMC ensure it continuously evolves its social strategy.
