ESG factors are integrated into the Manager’s investment process as part of the qualitative judgement of a company’s sustainable competitive advantage. The primary focus is on identifying and investing in high-quality companies, which the team characterises as those with sustainable excess returns. The team recognises that ESG factors can expose potential investment opportunities and risks, reflect the quality of management and impact a company’s financial performance. As a bottom-up investor, the Manager’s investment approach lends itself naturally to the integration of ESG factors at the company level. The team believes the evaluation of ESG factors contributes to a broader and deeper understanding of the strategic direction of a company and allows for a more accurate assessment of the risks and future costs facing a company.