Responsible stewardship does not stop with our stock selection and engagement activities. Where we find that there are macro- or sector-level practices or policies negatively impacting prospects for sustained value creation, and where we believe we can contribute to change, we will seek to do so.
Government and other market-wide policies and regulation have a direct bearing on long-term economic growth, as well as the potential for companies to generate economic returns within particular sectors. Where these policies are not aligned with sustainable growth, this can impinge on companies’ prospects and long-term investment performance. Indeed, a small change in macro-level policy can have a larger impact for the long-term earnings generated by a business than shifts in a company’s operational performance or strategy.
Consequently, it is our view that policy outreach is an important part of a holistic approach to delivering long-term value to our clients. Where appropriate, we seek to work closely with other like-minded shareholders, since this increases the weight of our voice.
It should be emphasised that we are not interested in lobbying for changes to regulations that favour just one sector or one company over another. Our interest lies in ensuring a stable macroeconomic environment that fosters sustainable economic growth and shareholder returns. In this sense, our aims should be well aligned with that not just of our clients, but also of the broader public, and our voice should be a force for positive change.
Our work covers a broad range of topics, including: