The fundamental equity team meets on a regular and frequent basis with the management of the companies that they follow. At these meetings, the portfolio managers ask various questions that assist in the research of the organization that they are reviewing and include questions on sustainability of the business, environmental impacts of the business, social implications of policies enacted by the business and other related questions. Their responses to these questions form part of the non-financial analysis of the company. To the extent that there is a likely financial implication over the investment time horizon of the strategy, the team will reflect this in their financial forecasts and valuation approach.
The quantitative equity team has conducted research that to date suggests there is no incremental predictive power for ESG measures within the time horizon used in their models, over and above the measures that are currently reflected. The team is committed to continuing in-house research in this field.