Responsible investment is integral to our purpose, our philosophy, and our culture.
Our purpose guides us towards sustainable businesses*, generating compelling compound returns for our investors, measured over decades.
We believe that sustainable businesses are best placed to create compound returns. The financial sustainability of a business increasingly depends on all aspects of sustainability – including environmental and social elements.
We do not invest in stocks where we have concerns with their financial stability, including businesses where social or environmental issues prohibit financial sustainability. We aim to invest in great businesses, and back those that deliver value for their key stakeholders.
* In this context, we primarily mean the financial and economic sustainability of companies. We also consider companies’ environmental and social sustainability. Please see here for further information.
Our Investment Philosophy embeds ESG factors, and is grounded by the belief that we can generate higher compound returns for investors by taking less risk.
Considering ESG issues is key to our investment approach of identifying opportunities and mitigating business risk in order to compound returns over time.
Several questions on our Investment Philosophy checklist address ESG issues, including those related to climate change, management quality, purpose, and culture.
Our culture enables effective stewardship. Collaboration is integral to our culture, and responsible investment is a team-wide responsibility.
We do not believe responsible investment can be effectively outsourced. We undertake our own research and have a proprietary ESG framework – our Responsible Investment Gauge (RIG) – which we use to prioritise, assess, and explain relevant ESG issues for each stock in the Fund.
We delve into detail, spend time engaging with management, and make active voting decisions.