Sustainability is one of the central factors of how we invest in the
Australian Small Companies strategy.

We actively manage the portfolio, combining earnings-based valuation and sustainability.

We assess external and internal sustainability forces, covering ESG and
industry-specific considerations, and factor these into our stock recommendations with each company given a sustainability rating.

Our sustainability assessment is proprietary and reflects our own analysis.

The strategy is supported by dedicated in-house ESG research.

Governance carries the greatest weight in our sustainability assessment. In our assessment, corporate governance exerts a disproportionate influence upon a smaller company’s capacity to attract capital, manage growth and generate returns for shareholders, considerations that warrant the higher weighting afforded to governance within our proprietary sustainability score.

At the smaller end of the domestic market meaningful insight must be developed on a company-by-company basis, through proprietary research and through direct engagement with the boards and management teams of the businesses we own.

Active ownership is a core part of how we manage risk and protect returns for our clients. Where our analysis identifies issues material to a company’s long-term value, engagement and voting are the tools we use to act on that view, testing management’s approach, and where warranted, pushing for change that supports shareholder value. We treat stewardship as an extension of the investment process.

> 2026 Australian Small Companies ESG Report

>  Economic uncertainty and the rising importance of social risk for investors