There has been a renewed focus on the intersection of investing and corporate citizenship, as businesses and investors see the how Environmental, Social, and Governance (ESG) themes rise to the fore in times of crisis.
While it is true that COVID-19 and the Black Lives Matter movement have underscored the importance of stakeholder capitalism, they also highlight why fundamentals and strength of balance sheet are a critical piece of long-term success. With them, companies can chart a course through difficult times. Without them, they risk sinking quickly into high-risk activities, overleveraging themselves into distress.
This was true in 2008, when the financial crisis created an economic tailspin; it is true in 2020, as the convergence of global concerns pushed markets into freefall. In both cases, our focus on ESG and fundamentals kept our portfolios out of the fray – a testament to a strategy built on rigorous due diligence that includes proprietary ESG data mining.
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