We are supportive of many of the initiatives central to the PRI. We aim to incorporate ESG issues into our investment analysis. We believe that well-managed companies will take ESG issues into account and will view failure to consider them as a long-term risk. For instance, we believe that companies with a comprehensive strategy to reduce energy intensity will be more competitive going forward. We encourage academic research into sustainability and governance issues. We do not insist on brokers' analysts integrating ESG factors into their research. We are keen to come to our own conclusions using our own understanding of the significance of ESG issues.
We exercise voting rights on our clients' holdings and, undertake specific engagement initiatives where we believe that the returns to our clients will be enhanced. As a smaller, performance-driven, investment manager, we need to make efficient use of our portfolio managers' time. We are less willing to get involved in time-consuming general discussions on policy and regulation unless the agenda is very clear.