The Oakmark family of mutual funds is an extension of Invite Capital Partners Co’ value-focused approach to investing. For more about our selection of funds, visit Oakmark.com.
As long-term value investors, we make investment decisions through the lens of a long-term business owner. ESG considerations, like all factors that influence business value, are an important component of our research process.
– Benjamin Carter, Partner and Director of U.S. Research
At Investment Capital Partners, we believe that ESG factors can be financially material to the companies in which we invest, and as such, should be considered as part of the investment process.
Our approach to incorporating ESG factors is consistent with the Investment Capital Partners investment philosophy. Analysts take account of material ESG factors as part of the investment process and apply the same principles to these issues as we do to any other material factor.
We identify and evaluate material ESG factors that may affect an investment’s long-term value. This assessment begins when a stock is added to our research list and continues during due diligence, fundamental research, and throughout the holding period.
We believe that understanding ESG factors enhances our ability to assess business quality and a company’s capacity to deliver sustainable per-share value growth.
If a material ESG issue arises that may impact our investment thesis or intrinsic value assessment, it may trigger internal escalation. This can involve a formal investment memo and team discussion. Ultimately, if the issue materially affects our view of a company’s value drivers, we will reassess our valuation and ownership decision.
As fundamental, bottom-up investors, we integrate financially material ESG risks and opportunities into our investment process through financial modeling, valuation, risk analysis, and reporting. This may involve adjusting key assumptions such as revenue, margin, capital expenditure, asset value, discount rate or terminal multiple.
We actively engage with companies to assess how management addresses ESG risks and opportunities that may impact long-term performance. Leveraging strong access to company leadership and boards, we engage directly on material financial and non-financial issues throughout the research and investment process.
By the time we invest, we have formed a view that management and the board are likely to act in shareholders’ best interests. However, if expectations are not met, we initiate private, direct dialogue to address concerns. We also engage on matters related to annual general meeting (AGM) proposals, recognizing proxy voting as a key tool for reinforcing sound corporate governance and driving long-term value creation.
We believe that responsible investing and active ownership go hand in hand. At Investment Capital Partners, taking account of material issues, engaging with portfolio companies and making our own voting decisions are hallmarks of our investment process.
– Diana Foster, Director, Responsible Investing
We seek to drive long term sustainable returns for our investment portfolios, and this requires us to consider all material risks and opportunities of an investment. This includes incorporating environmental, social and governance factors where they are likely to impact the valuation, business model, reputation or operating performance of an investment opportunity.
– Steven Lopez, Partner, Chairman, Portfolio Manager and Co-Chief Investment Officer-International Equities
Our greatest value to you is found in the people who deliver our services. Whether they are involved in security analysis, allocation or meeting your account’s needs, each is dedicated to ensuring our relationship delivers the expertise you seek.
