For long-term investors environmental, social and governance (ESG) analysis is a key component of assessing the sustainability and quality of a company’s returns. The way in which a business approaches sustainability risks and opportunities gives us valuable insight into a company’s culture and strategy. ESG analysis is integrated in our firm-wide research process. Understanding these factors for investments helps us build confidence in the businesses that we believe will be successful over decades.
Stewardship of our clients’ assets involves active monitoring, engagement and voting.
Research and monitoring
As the materiality of ESG analysis has increased, we have adapted our framework to embed this into our process. We do not conduct ESG analysis as an overlay but rather integrate it into every stage of our research process, from initiation notes to monitoring of existing holdings.
Our long-term ownership and low portfolio turnover enable meaningful engagement with management teams.
Our fund managers take direct responsibility for all votes, as informed by research and engagements.
Troy considers climate change to be a systemic risk that, if left unchecked, will impact investment returns as well as the environment and society.
We apply ongoing monitoring of the companies we hold on your behalf. Engagement with management teams helps companies continue to act in the best interest of their shareholders.
All our engagement should meet the following criteria:
We need to have a defined goal in mind when engaging with a company
The outcome of an engagement must be material.
We aim to be constructive shareholders, working with management to deliver sustainable outcomes.
Voting is central to our stewardship. Our fund managers are responsible for voting on all resolutions where we have voting authority. This means companies hear a single unified message from Troy.