We believe that ESG risks and opportunities have the potential to impact long-term financial returns. We know that better insights lead to better decisions, and so we have developed a bespoke approach to integrating ESG factors into the investment process across all portfolios in our Multi-asset strategy.
Our approach to responsible investment includes proprietary frameworks and research to inform investment decisions, company and thematic engagement to drive better outcomes and proxy voting across all securities. Our capability is supported by a dedicated ESG investment specialist within the Multi-asset team, and backed by firm-wide polices and Board oversight.
Identified ESG factors are assessed in consultation with the ESG investment specialist, and a discussion of these factors is included in each research report, and the valuation impact, where material, is either explicitly factored into company’s earnings forecasts, or implicitly through the determination of the terminal value or discount rate valuation adjustments. Identified ESG factors and valuation implications are discussed between investment analysts and portfolio managers and outcomes of these discussions are used by portfolio managers in constructing their portfolios.
