Why ESG matters to us
Our mission is to assist our clients in achieving their investing objectives.
We believe that examining financially significant ESG aspects helps us better comprehend the potential risks and opportunities of a firm or bond issuer.
We consider ESG concerns financially relevant when they have the potential to impact a company's fundamentals or an issuer's ability to repay debt.
This method is known as ESG integration.
How we incorporate ESG factors in our investment process
As part of our exhaustive research process, we assess a variety of a company's aspects, including financially relevant ESG factors, to decide whether it is an attractive investment.
If we believe that an ESG aspect may have an impact on our investment thesis, we will evaluate its risks and potential.
Financially significant ESG considerations might vary between companies and bond issuers.
As part of our research of a company's business lines, industry, operating nations, and history, we take particular attention to its governance structure and practices, as well as environmental and social concerns that are financially important.
As long-term, value-oriented investors, we seek opportunities with strong earnings and cash flow prospects that are not reflected in a security's current price.
We may invest in a company with financially meaningful ESG-related risks if we feel the company is making progress in addressing those risks, or if we determine that the investment is still compelling due to other factors, such as an attractive value.
We feel that our job as active portfolio managers extends beyond the selection of securities.
Constant communication with firm management teams and boards enables us to gain a deeper grasp of their goals and plans over time.
When we believe that a particular issue is crucial to our investing thesis, we seek ways to interact directly with the issuer.
Also, we may voice our opinions through proxy voting.
In order to demonstrate our dedication to ESG integration, we signed the Principles for Responsible Investing (PRI) in 2012.
Research Integration
When we believe that ESG-related risks and opportunities could have a significant financial impact on the company, we incorporate them into our investing process. We mix our own analysis with the evaluation of third-party reports and data.
Engagement
We want to establish long-term, productive relationships with management teams and boards. When we believe a company's decisions are not in the best interests of its shareholders and bondholders, we may interact with the company's management.
Proxy voting
Our policy is to vote proxies in a manner that best serves the financial interests of our clients as long-term shareholders.
