Our Investment Philosophy is guided by our mantra: “Long-term exposure to quality assets where value exceeds price”. This has remained unchanged over time and is designed to work through market cycles. ESG factors will impact both our determination of the quality of the company, as well as the price that we are willing to pay for it. We believe that most companies’ Return on Capital converge to their cost of capital over time. We look for companies that can prolong that ‘fade’ or competitive advantage period, thereby creating more economic value than the market assumes. A management team that considers ESG factors, demonstrates a long-term mindset and therefore a willingness to defend this competitive advantage. Companies with good corporate governance policies, an entrenched ethical corporate culture and an acknowledgement of environmental, political and socioeconomic matters tend to create sustainable value over time. For this reason, we place significant emphasis on sustainability as a source of value creation and view ESG analysis as a crucial component of our research process.