During the period, the selection process led us to make a substantial new allocation to a specialist manager solely focussed on long term sustainability in global public equity.
Their investment process is one of rigorous fundamental company analysis in which consideration of environmental, social, and governance (ESG) factors and the growing risks they may represent, adds rigor when looking at companies over a ten-year horizon. They have used this ESG lens to substantially outperform indexes and peers.
We were particularly impressed with the significant emphasis on active ownership and constructive engagement when investing in companies on a path of improvement both in terms of financial and sustainability quality. There is strong quantitative evidence of the manager improving companies with this approach, driving tangible ESG improvements on a wide range of issues. The level of detail and transparency on active ownership provided to us as investors for monitoring is also truly exceptional.