A high quality company should have a durable competitive position, a good governance and sustainability strategy and an appropriate capital structure. Every new investment idea into the portfolio or current holding reviewed is considered from a governance and sustainability perspective. If any governance or sustainability issue is identified in our fundamental analysis, we would typically seek to engage with company management. The purpose of this engagement is to enhance our understanding of the risks involved in the potential or existing investment. Given the contractual nature of our relationship with issuers, we understand our ability to influence is limited. However, we believe there is still value in engaging on governance and sustainability matters to gain a better understanding of the risks involved in the investment case. The emphasis of governance and sustainability analysis will vary depending on the company’s sector, region, strength of financial position and maturity profile. We may wish, for example, to focus more on environmental analysis for a mining company whereas regulation may take precedence for a financial company. We are flexible in our approach, freeing ourself from a rigid framework across multiple businesses. A member of the Governance & Sustainability team is assigned as dedicated resource to Fixed Income and this integration supports our decision-making process through participation in discussions, contribution to research and keeping the team abreast of material governance and sustainability developments.