Our investment philosophy and style are founded on the principle of real return investing, thereby aligning with what our clients are seeking to achieve: to protect and grow the purchasing power of their capital over the long term. We consider risk as the potential for permanent capital loss.
Responsible investment is not a separate ‘nice to have’ investment approach at Veritas: it is fundamentally and instinctively what we do in our investment approach. It is just common sense to us to incorporate all relevant factors into our investment decisions, to better manage long term risks and identify drivers of success to generate sustainable, long-term returns for our clients.
Our investment process focuses on identifying companies with sustainable business models and cash flow generation and therefore involved a combination of:
- identifying companies which stand to benefit from the opportunities created by global, structural changes, such as the scarcity of resources, transition to a digital economy and increasing global environmental regulation;
- incorporating ESG factors, such as corporate governance, into our qualitative and quantitive analysis; and,
- screening companies against international standards, and excluding companies which are not taking a sustainable approach to managing long-term ESG risks.