We strongly believe monitoring ESG factors for our fixed income mandates provide better risk management, hence leading to superior returns. We also undertake ESG screening and thematic investing when our clients demand it.
A key aspect of our approach is the explicit integration of ESG issues into our investment decisions. We do not reduce our investment universe by screening out industries or business practices for ethical reasons – we rather enhance our investment decisions by considering ESG factors that could have a material impact on financial or investment performance. The team is supported by the Sustainable Investing team working together to proactively identify and assess ESG risks and opportunities in our existing investment process.
When considering the purchase of a new security, the investment team incorporates ESG considerations into their investment analysis. The investment team receives ESG analysis from Addenda's sustainable investing team that draws upon a variety of ESG sources of information.
The investment team incorporates the ESG information and analysis into their decision, along with a variety of other considerations including corporate structure, management quality, relative value and liquidity.