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Process

Here you can read more about what drives our unique and integrated approach to responsible and sustainable investing.

Our Philosophy

  • As active managers, we seek to invest in a diversified mix of responsible and sustainably managed companies
  • We identify companies with strong balance sheets and superior cash flow generation, which are driven by proven business models at an attractive valuation
  • We aim to identify contrarian opportunities which typically focuses our attention away from large-cap companies
  • We seek to invest in companies for the long-term, minimising portfolio turnover and trading costs whilst also ensuring we actively vote and engage with management around key issues

Our Process

We have two teams working side by side to deliver profits with principles. The responsible investment team ensure that responsible and sustainable factors are fully integrated into the fund managers’ financial and corporate analysis of companies. Together, the two teams generate ideas, analyse opportunities, create meaningful and diversified portfolios and undertake ongoing evaluation.

Our Amity Approach

We believe our Amity Funds benefit from a unique and long established process, whereby Environmental, Social and Governance (ESG) risk factors are integrated into a traditional investment management approach. There are four key areas where our responsible investment team look to deploy ESG analysis; screening, engagement, governance and research.

Screening

To be considered suitable for inclusion within our Amity range of responsible and sustainably managed funds, an investment idea must meet the criteria laid out by our screening model.

RI Process Slide

The eight exclusion criteria which make up the Ethics/ Values portion aim to avoid activities that are harmful to society. Companies that derive more than 10% of their profits or turnover from these activities are excluded from our universe of investible stocks. We then integrate six areas of business risk (Responsibility/ ESG), which are core to the way in which we consider stocks as being suitable for inclusion in our Amity funds. Finally, we look at companies from a Sustainability/ Thematic angle. As we screen stock ideas, we consider the positive sustainability case in terms of products and solutions. This is a discretionary area of stock selection, as not all companies provide sustainable solutions.

Research

EdenTree’s thought-leadership research draws on an unrivalled depth of expertise that has built up over 30 years. Our responsible investment team regularly publish expert opinion pieces, which help to inform our clients and drive idea generation within our investment team. Our fund managers regularly write on a range of industry topics, from macro-economic and geo-political viewpoints through to individual stock ideas.

Engagement

We believe that the way we engage with businesses enables us to make sound, responsible investment decisions and to act as a catalyst for change. We form constructive relationships with companies we are considering investing in and we continue to engage with them after we have invested as part of our monitoring program. We also engage collaboratively with other investors on issues where there is common cause. 

Governance

We believe that shareholders have a vital role to play in encouraging high standards of corporate governance from the perspective of being long-term investors. We vote at all UK company meetings in which we have a shareholding, and have a proxy advisory service for overseas governance and voting. We will seek to engage pro-actively with companies where either existing corporate governance arrangements or management proposals cause concern.

Our Non-Screened Funds 

In addition to our Amity range, we also offer two non-screened funds. These funds are not subject to the same screening process as the Amity funds. However, clients still benefit from our responsible and sustainable investment team carrying out voting and engagement activities on our non-screened funds. 



The value of an investment can fall as well as rise as a result of market and currency fluctuations, you may not get back the amount originally invested. Past performance should not be seen as a guide to future performance. If you are unsure which investment is most suited to you, the advice of a qualified financial adviser should be sought. EdenTree Investment Management Limited (EdenTree) Reg. No. 2519319. Registered in England at Beaufort House, Brunswick Road, Gloucester, GL1 1JZ, UK. EdenTree is authorised and regulated by the Financial Conduct Authority and is a member of the Investment Association.