SKY Harbor's investment process is designed to identify, value and manage specific high yield market risks, which inherently includes ESG factors. It has long been our view that ESG factors play a material role in identifying potential investment risks and can, through analysis and consistent monitoring, be integral to investment decision-making and performance. We recognize the potential for a high correlation between companies that manage ESG factors well and superior investment returns, and, accordingly, ESG integration in our fundamental credit analysis and overall investment process is applied to all assets under management. We also implement sector and issuer level screening based on a combination of our top-down and bottom-up views of risks relating to ESG factors; for example, that we don't invest in coal extraction companies or companies that are in violation of international norms.
Additionally, a portion of our AUM is managed with client-directed ESG screens, and another portion is in (UCITS) funds which comply with the Convention on Cluster Munitions and do not invest in companies that manufacture cluster bombs and anti-personnel mines.