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Cantillon Capital Management

PRI reporting framework 2019

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

Cantillon’s investment philosophy is predicated on finding high quality companies capable of generating strong sustainable returns (e.g. Return on Equity, Return on Invested Capital, and Return on Assets) and compounding earnings at attractive rates that are trading at a discount to their intrinsic value. By virtue of our investment philosophy and our pursuit of companies with sustainable competitive advantages, our portfolio tends to be populated with companies that have good quality management and demonstrate sound corporate governance, environmental and social practices. We recognise that environmental, social and corporate governance (ESG) factors can impact a company's financial performance, their long term returns and hence the fair value of the stocks.  
 
We endeavour to integrate ESG issues into our investment analysis and decision-making process through: 1) Detailed, fundamental stock analysis 2)  Engaging in a constructive dialogue with company management 3) Carrying out an annual review of the portfolio to identify any companies where there is strong evidence of repeated and systematic breaches of international standards with regards to ESG issues 4) Our ownership policies and practices and through our proxy voting activity

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

Cantillon Capital is cognizant that environmental, social and governance (ESG) factors can impact a company's financial performance, their long term returns and hence the fair value of the stock. As a result, we endeavour to integrate ESG issues into our investment analysis and decision-making process. This is achieved through:

1) Detailed stock analysis: Before any stock enters the portfolio, the analyst will conduct an in-depth assessment of the company's future return profile and earnings potential. Any significant ESG issues that could have a material impact on the financial performance or risk profile of the company are typically identified at this stage

2) Annual ESG audit of the portfolio: In collaboration with MSCI ESG Research we conduct an annual review of the portfolio to identify any companies where there is strong evidence of repeated and systematic breaches of international standards and norms with regards to ESG factors

In addition, we incorporate ESG issues into our ownership policies and practices through our proxy voting policy and through engaging in a constructive dialogue with company management. 

There are no variations or exceptions to this approach

01.6. Additional information [Optional].

          
        
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SG 01 CC. Climate risk (Not Applicable)


SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Additional information [Optional].

We publicly disclose our UK Stewardship Code Compliance Statement on our website.  Our UK Stewardship Code Compliance Statement includes details on our proxy voting policy and covers aspects of our processes and approach to incorporating ESG factors into our investment analysis and decision-making processes.  


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

We have a clearly articulated policy on managing potential conflicts of interest in the investment process.  The policy forms part of our Compliance Manual, which is reviewed and updated at least annually by our Chief Compliance Officer.  Our Conflicts of Interest policy identifies conflicts and potential conflicts, and outlines the steps we take to mitigate those conflicts.  

03.3. Additional information. [Optional]

​For further information on our policy please refer to: https://www.cantillon.com/Download.aspx?ID=4bd0a19a-1417-46a0-9371-df8c07203a55.pdf&Name=UK_Stewardship_Code

 


SG 04. Identifying incidents occurring within portfolios (Private)


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