Responsible Investing

We firmly believe that sound ESG practices go hand-in-hand with superior long-term investment returns. Thus, we consider ESG to be a cornerstone of a business’s long-term competitive positioning.

Our ESG framework, as it relates to the evaluation of individual businesses, integrates the following parameters and risks in our investment decisions:

• Environmental – A business’s effort to proactively reduce and improve its environmental exposure thereby also enhancing its long-term sustainable competitive positioning.

• Social – Businesses whose activities are beneficial to all stakeholders, including employees, customers, society and shareholders.

• Governance –Businesses with a clear alignment of interests between management, employees and shareholders, including regular and transparent reporting.

Note that we exclude certain sectors from our investment universe due to significant negative externalities.

The relevancy of each sustainability risk may differ based on the economic sector each investment is active in. Therefore, we assess all available information, speak with company representatives, and physically visit portfolio businesses to determine which sustainability risks are material to our investment decision-making process.