Where expertise is needed on specific issues JOHCM's investment teams can source this internally from Regnan. Regnan’s experienced, multi-disciplinary research team has a deep understanding of ESG issues, especially those that are material to long term value. Additionally, JOHCM Investment Director also centrally co-ordinates access to external resources in order to solve ESG issues raised by teams.
JOHCM uses MSCI's ESG Ratings research to identify potential areas of concern on our holdings. This tool also allows us to analyse the profile of each investment strategy versus its investment benchmark. This is incorporated in the regular quarterly review of each strategy conducted by JOHCM's Investment Director.
Companies which fall into the lowest category on the ESG Ratings screen are reviewed for justification of holding by the fund manager and ratings downgrades are monitored. On occasions, fund managers escalate key issues for discussion with a company's advisers or directly with management.