ESG information is routinely incorporated into LPPI's fundamental analysis and in this way it influences our view of the fair value of all stocks within the internally managed portfolio.
When we undertake analysis our research of all factors (including ESG) is focussed on helping us to form a view on current and future key value drivers, including:
- the quantum of future cash flows;
- the timing of these cash flows;
- the appropriate discount rate.
LPPI evaluates material matters for individual companies case by case . Any concerns we identify (for example around governance) will influence the discount rate we consider appropriate and directly impact our view of fair value.