The Alquity investment process emphasises not only financial, but also material non-financial factors.
Through the incorporation of Forward-Looking Environmental, Social and Governance (ESG) analysis we assess management ability, practices and investment values. This results in portfolios that capture long-term themes, via transparent companies, with effective management who are aligned with shareholders.
In turn, these outcomes allow us to generate significant conviction and therefore enhanced risk adjusted financial returns. Moreover, they mean that our portfolios are responsible by construction – we will not own companies whose investment values are fundamentally incompatible with our process.
We will not hold companies with business practices that are fundamentally inconsistent with our process. This includes companies with over 5% of revenues or profits in their most recent financial report attributed to:
Fossil Fuel extraction and production
With respect to the development, production, maintenance and trade of weapons that have a disproportional and indiscriminate impact on civilian populations (so called “Controversial Weapons”), we have operate a zero tolerance. These include:
Ammunitions containing depleted uranium