Stewardship and ESG in the 7IM Investment Process
We base our engagement policy with third party managers on five principles.
First, we expect managers to focus on the long-term prosperity of companies and not look for short-term fixes that may be achieved at the expense of longer-term performance.
Second, we want managers to engage with companies and suggest where they think companies can improve their ESG behaviour. If companies fail to take the best interests of shareholders into account then we would expect managers to take appropriate action.
Third, our conversations with managers are confidential and we would not make public any confidential correspondence about or from a company, unless this has been agreed with the parties concerned. Fourth, we will speak out publicly on any matters of concern where we believe this is necessary or helpful to protect or enhance our clients’ capital.
Finally, we operate in public markets and all our interactions are governed by local laws and regulations that seek to ensure level playing fields for all investors. As a rule, we do not wish to receive any material non-public information. In the rare case where we do receive ‘inside’ information, our policies ensure we prevent the spread of this information and don’t trade on the basis of it, as discussed later.