Responsible Investment Policy

March 2020

Our three pillars for responsible investment

• Managing Risk: Failure to address key ESG issues can damage the value of companies. In the long-term, factors such as climate change will have an increasing impact alongside traditional risks.

• Realising Returns: Companies with a good governance structure that can manage ESG factors effectively are better placed to deliver long-term sustainable returns.

• Unlocking Opportunities: In a changing economy where regulators and consumers are paying more attention to sustainability, there is potential to find profitable opportunities from a responsible approach.

Our responsible investment beliefs

ESG integration for our clients

• E,S and G factors are constantly evolving alongside what is considered ‘best practice’, therefore achieving a responsible approach is an ongoing challenge.

• Climate change represents a systemic risk and investors’ portfolios will have to adapt during the transition to a low carbon economy.

• ESG factors are relevant for all asset classes. Measuring and monitoring ESG factors alongside traditional investment analysis forms a key part of successful ESG integration in all asset classes.

Working alongside investment managers

• Delegating the management of ESG factors to investment managers, alongside thorough due diligence, is a pragmatic way for investors to integrate ESG factors efficiently.

• However, clients that have the ability and willingness to, can add value by developing bespoke arrangements with their investment managers.

• Collaboration is key to successfully promoting best practice and initiating change. Engagement for change, can help build a more sustainable economy.

At Isio, the Investment Advisory team believe that a responsible investment approach, which considers Environmental, Social and Governance (ESG) factors will add significant value to our clients. Our responsible investment policy outlines the importance of ESG factors in the advice we provide our clients, to manage risk, realise returns and unlock opportunities.

ESG factors are integrated throughout our advice, from investment strategy to manager selections and monitoring funds. We believe that alongside traditional strategic considerations, ESG factors are relevant across all asset classes when targeting long-term sustainable returns. Furthermore, we believe investors should be good stewards of their assets and so we have a duty to support our clients in achieving this.

What we do for our clients

Bespoke ESG advice

• The role of our specialist responsible investment research team is to: co-ordinate our approach to integrating ESG factors within our advice, engage with investment managers and other stakeholders, and produce thought pieces to help share knowledge in the market on key ESG related issues.

• Our advice covers a wide range of topics. We have engaged on a number of areas including providing our clients with training on responsible investment and ESG risks – highlighting the aspects of responsible investment that really matter to them.

• The ESG research team work with our consultants to develop their knowledge and understanding so that they can assist our clients with implementing bespoke approaches for responsible investment and ESG integration in the investment process.

ESG research within asset class teams

• Each of our asset class research teams incorporate ESG factors alongside traditional investment considerations within our entire research process from the initial due diligence right through to monitoring of investment managers and their products.

• We have a set of ESG criteria that we assess investment managers and products against to help us identify key characteristics but also to engage with managers on any areas for improvement.

What does this all mean for you

• ESG factors will continue to be an integral part of the investment decision making process – it is not merely the latest fad. Regulators and policy makers will continue to emphasise the importance of responsible investing and the investment industry’s role in building a sustainable economy.

• We recognise this area of investments is a work in progress and, as the quality and availability of data improves, we anticipate responsible investing becoming more mainstream. We are supportive of this evolution and we will continue to review our approach and policy on responsible investment as this area of the industry continues to develop.

• We will work with you to:

a) Set your ESG beliefs to sit alongside your investment principles. This process is very similar to a strategy setting session and will help determine your desired position on the ESG spectrum.

b) Discuss options on how to incorporate these beliefs into your current portfolio via an impact study. We have experience in working collaboratively with all key stakeholders (such as Sponsors) to ensure various ESG values are aligned.

c) Implement any changes and continuously monitor the suitability and effectiveness of the strategies and products with respect to your objectives.

“We are committed to helping our clients tackle challenges and capture opportunities that lie ahead through responsible investment.”Pat Race Partner Isio Investment Advisory

Contact

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

© Iseran Bidco Limited/Iseran Regco Limited 2020. All rights reserved. Iseran Bidco Limited is an Appointed Representative of KPMG LLP which is authorised and regulated by the Financial Conduct Authority FRN 210513 isio.com

Patrick Race

Partner & Head of ESG Research patrick.race@isio.com +44 (0)7867 442078

Andrew Lilley

Deputy Head of ESG Research andrew.lilley@isio.com +44 (0)7468 369552

Nick Evans

Partner nick.evans@isio.com +44 (0)7770 496517

George Fowler

Partner george.fowler@isio.com +44 (0)7920 722541