ESG

In recognition of our role as a centre of investment excellence, VFMC will take a leadership role in environmental, social and corporate governance (ESG).

VFMC acknowledges that ESG issues may affect the performance of investment portfolios. As such it is incumbent upon VFMC to consider ESG risks in its investment decision-making processes in order to protect and manage its investments on behalf of its clients for the long-term. VFMC seeks to understand the impact of ESG drivers on asset value in the short, medium and longer term and incorporate these ESG drivers, where material and appropriate, into our internal investment process. VFMC believes it is appropriate to take an active approach to ESG management.

In general terms, VFMC will through active management of ESG issues seek to influence the behaviour of companies by engaging with them either directly, through specialist engagement companies or via external managers rather than by divesting/excluding their securities. VFMC has appointed Regnan Pty Ltd to undertake engagement with Australian companies on our behalf. Regnan has exclusive access to ESG (environmental, social and corporate governance issues) research conducted by a Monash University based team. VFMC has a one eighth share in Regnan and a seat on the board.

Regnan undertakes detailed research into the environmental, social and corporate characteristics of S&P / ASX 200 entities to identify sources of ESG risk within VFMC’s portfolio. Where improvements are warranted, VFMC mandates Regnan to undertake constructive, collaborative engagement of these companies to ensure these risks are appropriately governed.

In addition and where it is felt appropriate VFMC may engage with companies directly.

For more information about Regnan, please see:
www.regnan.com

To view our ESG Policy in full please:
click here