When undertaking due diligence on a potential investment, as part of the investment decision making process, the firm considers all relevant factors which includes analyzing the macro environment, industry/sector issues, operational issues, management, financial position, performance over the long-term and ESG opportunities and risks.
We believe that issuers which incorporate Environmental, Social and Governance (ESG) considerations into their business model are more likely to be successful over the long-term. Consequently, we believe that incorporating ESG considerations into the investment decision making process is likely to deliver attractive risk adjusted returns for our clients over the long-term. As part of our investment philosophy we favor/look for companies which have strong market leadership positions, ability to convert market leadership into profit, cash flow and balance sheet leadership and has best-in-class ESG practices to ensure the sustainability of that profitability.
We incorporate Responsible Investing in our investment decision making process through quantifying the potential risks or opportunities arising from the ESG practices of a company. This includes quantifying the impact on profitability, credit metrics and yields. We incorporate ESG risk considerations in our modelling for the forecast horizon.