How we invest responsibly

February 13, 2012

Responsible investing is a continuous process of balancing risks and seeking returns. Our investment professionals do this through an ongoing process of skillfully seeking, evaluating and managing our investments.

Our investment process can be broken down into three stages.

1. SEEK

We identify a theme—such as a scarce resource, climate change, emerging technology or other trend—or we find sectors or companies that may be under-valued. We tap into news feeds, conference presentations and research reports to find potential opportunities.

2. EVALUATE

To determine if an opportunity is as good as it looks, our teams perform internal due diligence and draw on external consultants' opinions. They examine numerous issues ranging from financial performance, environmental performance, labour relations, marketing strategy and legal issues. In the case of public equities, an analysis can be realized in a few hours on the trading desk. For direct investments in companies, evaluation and eventual negotiation can take weeks or months.

3. MANAGE

Every day brings new events that may impact the performance of the companies in which we are invested. We continually monitor our holdings against emerging threats and opportunities, to help us determine when to sell and return to the market to seek another opportunity.

Find out more about responsible investing

Many of you take a keen interest in environmental, social and governance matters. To keep you up to date, we have dedicated a section of our website to our responsible investing initiatives. A thorough view of responsible investing is presented in Responsible Investing – An Evolving Story, a 23-minute documentary and roundtable discussions featuring senior members of our investment team.