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ESG Approach

Philos Investment Management's goal is to be the best at protecting and growing our clients' money over time. For over 15 years, Philos Investing Management (IM) has conducted its own investment research, focusing on long-term capital preservation and prudent risk management relative to return. The idea that the key to higher long-term investment returns is, first and foremost, loss avoidance has always been central to our investment strategy.

We believe that incorporating environmental, social, and governance (ESG) criteria into our investment strategy strengthens our ability to manage risk and achieve long-term objectives. ESG criteria, we believe, are critical components of our investment strategy for both equity and fixed income investments.

Our approach to investing is guided by a set of basic principles that are applied across the board of our investment portfolios and take ESG criteria into account. They reflect a tried-and-true methodology that has resulted in long-term client relationships and set us apart from the competition.

Our investment guidelines:

  • prioritise capital preservation;
  • conduct in-depth, bottom-up fundamental research;
  • invest with a long-term mindset;
  • be disciplined and patient; and
  • use a value-based approach.

ESG factors are evaluated as part of our investment research process to assist us in determining the long-term viability and sustainability of our firms and credits:

  • Environmental - Businesses that are resource efficient, aware of climate threats, and mindful of their environmental impact may realise efficiencies that drive profits. They are also less likely to generate unanticipated liabilities, which can depreciate the company's value.
  • Social - Keeping high standards for internal and external behaviour can help organisations build strong cultures, achieve better long-term outcomes for all stakeholders, and avoid regulatory action.
  • Governance - Long-term sustainability necessitates an examination of the quality of management teams, ownership structures, and the framework of laws, practises, and incentives within which businesses operate. In our opinion, well-managed organisations in which management teams act as owners are more likely to manage resources efficiently, create long-term value for shareholders, defend creditors' interests, and maintain access to credit markets. These are critical characteristics of the businesses we choose to own for our clients.

ESG Integration is an important part of our bottom-up approach.

  • Our investment team of more than 50 equity and fixed income specialists is responsible for incorporating key ESG criteria into our investment analysis and decision-making process.
  • While adhering to our overall investment philosophy and process, each of our investment teams employs a tailored approach that is best suited to their specific strategy.
  • We commit to conducting a thorough examination of all variables that could result in capital impairment. If the risks associated with ESG are not handled and managed appropriately, as with any potential risk, it may influence our decision on how to proceed with that security.

Philos IM is a global investment management firm that works with both institutional and individual clients. ESG factors are incorporated into our investment strategy. We can customise investing solutions to meet a client's specific ESG goals or screening preferences.

Philos Partners & Co. (“PP”) may be used as a generic term to reference the company as a whole and/or its various subsidiaries generally. This material and any products or services may be issued or provided in multiple jurisdictions by duly authorized and regulated subsidiaries. This material is for general information and reference purposes only and does not constitute legal, tax or investment advice and is not intended as an offer to sell, or a solicitation to buy securities, services or investment products. Any reference to tax matters is not intended to be used, and may not be used, for purposes of avoiding penalties under the U.S. Internal Revenue Code, or other applicable tax regimes, or for promotion, marketing or recommendation to third parties. All information has been obtained from sources believed to be reliable, but accuracy is not guaranteed, and reliance should not be placed on the information presented. This material may not be reproduced, copied or transmitted, or any of the content disclosed to third parties, without the permission of PP. All trademarks and service marks included are the property of PP or their respective owners. © Philos Partners & Co. 2022. All rights reserved.