As a long-term investor we view the sustainability of a company’s business model to be crucial to any investment decision. Because of this we believe that good corporate governance is an essential pre-requisite to investing in any business. Equally, a company's successful and proactive responses to environmental and socail issues underpins their long term success (and in some cases survival). Our initial analysis of any potential investment therefore incorporates governance issues such as shareholder and board structures, management compensation, related party transactions and conflicts of interest as well as direct and indirect environmental and social factors, employee compensation and pension provision.
While maximising long term returns on assets managed is the focal point for us, we understand that ESG issues can determine whether these long-term returns are achievable or not. We therefore take an active role in promoting good corporate governance in each of the companies that we are invested in.