How We Select and Manage Individual Investments
Our objective is to achieve superior long-term risk-adjusted returns on behalf of members. We do this through an ongoing process of skillfully seeking, evaluating and managing our investments. Over the course of a year, we review hundreds of companies in various sectors and geographies, while choosing to invest in only a select few.
Our investment managers search the world for promising opportunities — regularly reviewing pitches from companies that contact us directly for consideration, as well as tapping research reports, news feeds and other sources of information.
At the macro level, we identify a theme — such as climate change, emerging technology or other trends — and find sectors and companies that may be expected to benefit. At the same time, we remain mindful of the weightings the plan seeks to achieve with respect to asset classes and geographic regions, and its need for particular time horizons. At the micro level, we hone in on specific companies that may be under-valued.
Things are not always as good as they appear, so after highlighting a potential opportunity, our investment teams perform extensive fundamental analysis and due diligence, looking at the market and industry, quality of management and personnel, business strategy, governance, financial performance, environmental performance, physical assets and so on.
We identify and quantify material risks, and then determine if the potential returns justify an investment.
We actively monitor our investments against emerging threats and for opportunities, using oversight, foresight and market intelligence to reassess risks and returns. Every quarter brings fresh financial information, and each new day brings events that could impact the performance of companies and the value of our holdings.
This ongoing work helps us determine when to sell and when to return to the markets in pursuit of new opportunities. It also helps us provide guidance to companies at the board level.