ESG Research
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.
An integrated process
Our approach is to fully integrate ESG analysis into our fundamental research and investment process. This means all our analysts and fund managers have responsibility for ESG analysis, voting and engagement.
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.
Engagement
Our long-term ownership and low portfolio turnover enable meaningful engagement with management teams.
Voting
Our fund managers take direct responsibility for all votes, as informed by research and engagements.
Climate
Troy considers climate change to be a systemic risk that, if left unchecked, will impact investment returns as well as the environment and society.
Engagement approach
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 engagements should meet the following criteria:
Clear objective
We need to have a defined goal in mind when engaging with a company
Materiality
The outcome of an engagement must be material.
Constructive
We aim to be constructive shareholders, working with management to deliver sustainable outcomes.
Voting
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.
Responsible Investment & Stewardship Policy
Climate
We are committed to supporting the goals of the Paris Agreement. Our portfolios are all less carbon intensive that their benchmarks and we have set targets for decarbonising them further.