The core tenets of Epoch's ESG Policy are set out below:
Should enhance the pursuit of positive, risk-adjusted returns to our clients (i.e., positive information ratio)
Cash flow and the effective allocation of free cash flow drives long-term value creation.
Successful capital allocation requires good corporate governance. Additional factors, including social and environmental issues will increasingly affect return and risk.
Broadening of investment lens ensures consideration of ESG-related factors impacting returns and risk.
Identify and inform management of identifiable ESG issues that may affect returns on capital.
Relevance, materiality, and timeliness of ESG factors vary by industry and company.
Review ESG factors deemed to be relevant and material to returns or risk.
Integrate ESG assumptions into investment process.
Encourage companies in which we invest to address ESG-related issues believed to impact returns or risk.
Provide evidence of ESG-related factors in investment decision-making.