We bring a richer perspective to the investment process.
Our approach to investing is hands on and in depth. We look for responsible, progressive companies because we believe they are better managed, which in turn enhances their resilience, competitiveness, and growth potential.
And our efforts continue long after the investment is made. Once a company is selected, we actively monitor its environmental, social, and governance (ESG) progress and use our rights as shareholders to engage company management if an issue arises.
Today’s investors live in a world of evolving environmental risk, increased social expectations, and changing shareholder demands. Our socially responsible investment process integrates ESG analysis with in-depth financial analysis to identify companies with the potential to thrive under these conditions.
Our investment team researches and evaluates companies based on rigorous financial and ESG criteria, historical valuations and detailed projections based on traditional valuation metrics. By examining a wider range of criteria, and by investing across businesses, sectors, and regions, we limit risk and build a concentrated but diversified portfolio of selective, high-conviction companies.
At VCIM, socially responsible investing means more than simply choosing the right investments. We also monitor the companies in our portfolios over the long term to ensure that they continue to support the progressive social values that we and our investors support.
When we become aware of new risks, controversies, incidents or policy developments, we actively engage with management, either independently or in cooperation with other shareholders and stakeholders.
By communicating our concerns as investors, we encourage companies to manage risks and improve performance.
VCIM assesses the ESG qualities of every potential investment based on the company’s ability to balance the interest of different stakeholders, customers, employees, shareholders, and the community. We review company performance in seven key areas, and factor in the amount of revenue generated from products or processes that we consider unsustainable, including tobacco, nuclear power, military armaments, adult entertaining, and gaming.
Once we determine that a company meets our ESG and financial criteria, a security is selected for the portfolio based on its fundamental merits as a company and as a stock in terms of the share price and valuation.
Our seven key criteria are:
- Corporate governance and citizenship
- Environmental leadership
- Employee relations
- Community relations
- Human rights
- Sustainable products
Recently, we filed seven shareholder resolutions and conducted 23 corporate engagements on emerging ESG risks.