We believe that detailed bottom-up research allows us to identify corporate champions that beat competitors to the consumer's wallet with superior brands, technology and infrastructure. We do not slide down the quality curve purchase cheap companies.
We implement our philosophy with a systematic and repeatable in-house process. The process uses both qualitative and quantitative inputs to identify our best ideas with the final allocation decided based on rigorous debate amongst the team and subject to the investment mandate.
ESG is incorported into our process through two methods:
- Best in class selection: Preferring companies with better ESG performance relative to peers. We assign scores on our companies based on various ESG factors, this database is updated annually.
- ESG integration: Evaluate each company individually and add ESG alongside traditional valuation methods. We have a research process that is focused on identifying good quality companies, naturally there is an overlap with ESG. We look at each company and identify ESG that are important to each company, Govenrnance is of particular importance to us given the markets we operate in. We do not compromise on this in order to buy a cheap company.