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Responsible investing

We strongly believe that environmental, social and governance (ESG) factors such as climate change, social inequality and executive pay are financially material. Therefore, for us, responsible investing involves incorporating ESG considerations into investment decisions

Our purpose is to create a better future through responsible investing

Responsible investing is core to our investment approach and purpose: to create a better future through responsible investing. This position enables us to use our influence to encourage:

  • companies to integrate ESG factors into their culture and everyday thinking
  • markets and regulators to create an environment in which good management of ESG factors is valued and supported

It also gives us an opportunity to raise market standards and best practice.

Our three areas of focus as an asset manager

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Holding boards to account

To be successful, companies need to be led by people who are well-equipped to create resilient long-term growth. By voting and engaging directly with companies, we encourage management to control risks while seeking to benefit from emerging opportunities. We aim to safeguard and enhance our clients’ assets by engaging with companies and holding management to account for their decisions. Voting is an important tool in this process, and one which we use extensively.

Creating sustainable value

We believe it is in the interest of all stakeholders for companies to build sustainable business models that are also beneficial to society. We work to encourage companies to be well-positioned for sustainable growth and seek to prevent market behaviour that destroys long-term value. Our investment process includes an assessment of how well companies incorporate relevant ESG factors into their everyday thinking. We engage directly and collaboratively with companies to highlight key challenges and opportunities, and support strategies that seek to deliver long-term success.

Promoting market resilience

We believe it is essential that markets (and, by extension, the companies within them) can generate sustainable value. In doing so, we believe companies should become more resilient amid change, ultimately benefiting the whole market. We use our influence and scale to seek to ensure that issues affecting the value of our clients’ investments are recognised and appropriately managed. Significant environmental issues such as climate change and biodiversity loss remain a dominant theme of engagement as we continue to hold companies to account on their progress to net zero.

Key risks

The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. Past performance is no guarantee of future results.