Increased investor focus on ESG (Environmental, Social & Governance) considerations.
Investors are becoming increasingly aware of how their money is invested and how the companies they invest in deal with issues such as human rights, employee wellbeing and how companies operate.
As is the case in ESG investing, the governance factor covers the fund managers themselves meet with the companies concerned. They carry out site visits to witness first-hand the processes and people within the business. With this type of investing, being a shareholder is being a stakeholder, therefore they actively get involved in any voting procedures with regards to how a board of directors are operating. This could include voting on oil companies to encourage them to move to more use of renewables, voting on directors pay, or voting on how staff are treated.
Investors are seeking evidence that their money is used in an appropriate manner inline with their social beliefs.
Our research provides the evidence that the underlying companies within the funds of our portfolios, are clear and transparent on how they focus on ESG.
For a more detailed look at our investment process, click here.