Ardevora’s investment process lies at the heard of everything it does. Ardevora’s objective is to generate significant outperformance over the long-term whilst maintaining a relentless focus on risk.
Ardevora is dedicated to achieving the best possible risk-adjusted returns for its investors and believe responsible investment ("RI") is an important factor in achieving these returns for its clients. As part of this Ardevora strive to gain an understanding of the relevant environmental, social, governance ("ESG") issues applicable to its investments and seek to identify these issues before they escalate into events that may threaten the value of its investments.
To enhance Ardevora’s ESG understanding, Ardevora collects ESG information from third party providers of ESG research – this strengthens its Fund Managers understanding of a company’s ESG practices and the risks that they may present to Ardevora’s current and potential portfolio holdings. While these service providers do not cover every company in Ardevora’s investment universe, they provide a comprehensive tool to enhance and supplement fundamental research and analysis. The external service provider reports are used to derive scores for corporate governance, socially responsible and environmental factors which feed into the decision to invest.
Identifying and incorporating ESG factors does not substitute Ardevora’s existing investment process. It presents additional factors to be taken into the investment decision. Ardevora retains complete control over any investment decisions.
In addition, Ardevora has a Global Long-only Equity SRI Fund. This Fund has exposure to a broad spread of stocks in most of the major equity markets around the world. The Fund will typically hold between 140 and 190 stocks and these will be equally weighted by region in order to reduce individual stock risk. The construction of the Fund includes an overlay screen, which includes some of the principles of Socially Responsible Investment ("SRI").