Approach to Responsible Investment
At Aztiq Finances, our purpose is to invest wisely and contribute to the growth of the businesses that will shape the future. By investing our own capital alongside that of our investment partners from around the world—such as public and private pension funds, sovereign wealth funds, insurance companies, foundations, family offices, and high-net-worth individuals—we help investors achieve their financial goals for the benefit of their clients, beneficiaries, families, and communities.
We recognize that investors, employees, and other stakeholders are increasingly prioritizing environmental, social, and governance (ESG) issues, including those related to climate change. These evolving priorities are influencing both investment strategies and employer choices. Investing wisely means that we consider these shifting factors in our investment decisions and the way we manage our firm.
We believe that integrating ESG factors into our investment process is critical to creating long-term value. By identifying opportunities and risks related to ESG, we can enhance business performance. Across all our platforms, including private equity, credit, and wealth management, we assess material ESG factors for each company while also evaluating broader ESG factors that impact the sectors in which they operate.
Responsible investing is integrated into our manager research and portfolio construction processes, ensuring that sustainability risks are identified and managed at every stage. This approach allows us to incorporate relevant environmental, social, and governance (ESG) factors, enabling us to make informed decisions that align with both financial objectives and responsible investing principles. By embedding responsible investing across our processes, we help mitigate potential risks and seize opportunities that contribute to long-term sustainable returns.
Portfolio Management
At Aztiq Finances, our portfolio managers carefully select active managers from those highly ranked by our research teams, utilizing ESG rankings and key metrics such as carbon footprint, exposure data, and overall performance. We prioritize investment products with top-tier ESG credentials, ensuring that they align with our commitment to responsible investing.
Furthermore, we incorporate ESG-related themes into our portfolios when applicable. All manager appointments undergo thorough review and approval by the relevant governance groups within our Investment Division, ensuring that each selection supports our high standards for sustainability and performance.
Sustainability Risk Management
At Aztiq Finance, portfolio managers consistently identify and evaluate financial and sustainability-related risks within our portfolios. By utilizing available metrics and collaborating with external investment managers (subadvisors), they actively monitor any potential risks. When a sustainability risk is identified, the following steps may be taken:
A review of the underlying drivers or sub-components of the risk metrics
A detailed discussion with the external investment manager responsible for the holding to better understand the risk
Coordination with Aztiq Finance's Active Ownership team to explore engagement strategies, such as shareholder advocacy or direct dialogue, to address the risk.
This proactive approach ensures effective management and mitigation of sustainability risks, reinforcing our commitment to responsible investing.
