We aim to be as aligned with our clients, the asset owners, as possible. As such, we require the management of the companies in which we invest to demonstrate similar alignment. Since many scenarios arise where alignment may not be absolute, we consider and quantify any risk arising from that lack of alignment as we would with other major risks.
Our investment strategy reinforces this alignment. We invest in an area where considerable growth opportunities exist, and specifically select businesses with fundamentally sustainable business models, avoiding near-term opportunistic anomalies. These strict investment criteria provide a foundation for long-term investment performance at their core. Likewise, environmental and social considerations that could be viewed as externalities and can negatively affect other stakeholders. Management of a company that can align shareholders’ interests with those of the wider community therefore improves the prospects for that company’s sustainability.
We actively and deliberately vote according to our governance principles and to protect our clients’ interests. We do not rely on recommendations from proxy voting providers.
We consider a management’s approach to governance for companies in which we invest our clients’ funds to be fundamental to any investment decision.