Sustainability

At Wintons, environmental, social and governance (ESG) analysis is integral to our primary goal of delivering capital preservation and performance to our clients.

Our research and our experience as a specialist fixed income manager tells us ESG factors can have a measurable impact on asset values, and we believe their influence is only likely to grow in the future.

Our ESG methodology is embedded within our regular investment process across all strategies, and it is also the basis for our more targeted Sustainable funds. We believe this approach helps us target the maximum risk-adjusted returns for our clients while promoting better societal outcomes.

For asset managers, stewardship is the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society. For us this means engaging with and monitoring the companies in which we invest to address risks and identify opportunities for our clients, and being transparent in our approach. It also means working with regulators and our industry peers to try to tackle systemic risks and promote a well-functioning global fixed income market. To ensure we dedicate the necessary resources to stewardship, we make portfolio managers responsible for stewardship activities just as they are responsible for our investment process. Like ESG analysis, stewardship forms part of every manager’s ongoing performance appraisal. We believe there is no better way to integrate stewardship within our investment process.

Stewardship

We believe it is self-evident that sustainability is a major contributor to long term investment returns. As a fixed income portfolio manager, our first priority when we purchase bonds on behalf of our clients is that the issuer can continue to pay the coupons and return the principal at maturity. Therefore, we only want to allocate capital to companies with sustainable business models. Any business making short term gains with unsustainable practices would present a significant risk to our clients’ capital and their long term investment objectives.

Our belief

Climate change is a clear and present risk to the global economy and our clients’ investments. Wintons believes it has a responsibility to drive industry change in promoting better environmental outcomes, especially regarding contributing to the development of a net zero carbon economy. Through our Carbon Emissions Engagement Policy we assess companies’ CO2 intensity and monitor their reduction plans over time, with the aim of reducing both CO2 emissions and production technologies which contribute to climate change and pollution. We also track bond issuers’ commitment to the UN Sustainable Development Goals.

Climate change

We see environmental, social and governance (ESG) considerations as a financial risk to our investments like any other. Every strategy at Wintons is run to a uniform ESG standard, an approach known as ESG integration. This means ESG is embedded right into our regular investment process; our portfolio managers are responsible for performing a thorough ESG analysis on every investment they make. For investors that wish to go further, we also offer a range of Sustainable funds which are designed to actively promote a range of sustainable objectives.

Our integrated approach