Invest

Investing in an underappreciated opportunity with enormous potential.

Aiming to deliver competitive performance

Our sustainable investment approaches share a common objective — to outperform our benchmarks and deliver competitive returns for our clients. Explore how we approach:

Impact Investing

Investing in the world you want to live in

In our impact strategies, we aim to achieve positive, measurable social and environmental outcomes alongside competitive financial returns. We do this by investing in companies whose core products and services represent solutions to major global problems not addressed by other, nonmarket means. From affordable housing to clean energy to internet access, companies we invest in have improved the lives of millions of people around the world.

Our impact themes

3 categories. 11 themes. A world of opportunities.

Life essentials

Affordable Housing
Clean Water & Sanitation
Health
Sustainable Agriculture & Nutrition

Human empowerment

Digital Divide
Education & Job Training
Financial Inclusion
Safety & Security

Environment

Alternative Energy
Resource Efficiency
Resource Stewardship

How we measure impact

Measuring impact is central to our process. With extensive research and the development of proprietary key performance indicators (KPIs), we seek to determine each company’s progress toward effecting positive social and environmental change.

By adopting a structured, repeatable methodology, we aim to hold ourselves — and the companies we invest in — to high standards of accountability for measuring and achieving impact.

Read our Global Impact Annual Report

KPI logic chain and examples of metrics

1 - Input
  • Capital spending
  • Research
  • Specialized knowledge
  • Supplies
2 - Activity
  • Product development
  • Construction activity
  • Drug testing
  • Training programs
3 - Output
  • Student education
  • Units sold
  • Patients treated
  • Loan value provided
4 - Outcome
  • Salary increases
  • Health improvements
  • CO2 emissions avoided
5 - Impact
  • Reduction in poverty
  • Lives saved
  • Economic gains
  • Social empowerment
  • Health care cost savings

The KPI examples are for illustrative purposes only.

Our impact investing approaches

Learn more about our impact approaches:

Thematic Investing

Finding investment opportunities in secular trends

Long-term trends such as climate change or emerging markets economic development encompass underappreciated investment themes.

Climate change will almost certainly lead to asset repricing, creating some unexpected investment opportunities and risks. And developing countries with policies geared toward long-term economic prosperity may prove to be good investments over time.

Understanding the investment opportunity

Using climate research in investment decisions

We believe climate change will lead to asset repricing, creating unexpected investment opportunities and risks. The shift to a lower-carbon existence is already underway, and it may become imperative in coming decades.

In our view, companies, industries, and geographies that adapt to or mitigate climate risks have the potential to be long-term outperformers.

Investors should consider the risks that may impact their capital. The value of your investment may become more or less than the amount you initially invested.

Climate mitigation and adaptation

Climate change poses risks and opportunities for many industries, presenting a host of adaptation and mitigation solutions.

The examples shown are presented for illustrative purposes only and are not to be viewed as representative of actual holdings. Source: Wellington Management

Searching for opportunities in EM economic development

Sustainable, lasting growth as opposed to growth at all costs

Today, economic progress in emerging markets (EMs) is powered in part by forces related to sustainability.

We focus on long-term development metrics, tuning out the noise of short-term growth cycles, in the hunt for investment opportunities.

Our research focuses on identifying:

  • Companies that may experience profitability tailwinds or headwinds
  • Sectors likely to become larger and more important — or smaller and less so
  • How to structure portfolio exposures to best align with these shifts

Our thematic investing approaches

Learn more about our thematic approaches:

ESG Integration and Engagement

Identifying material ESG risks and performance drivers

Climate risk, talent management, board composition, and many other ESG-related issues can affect financial performance and impact a company’s long-term intrinsic value.

We believe we can arrive at more informed investment decisions by understanding these risks. Our portfolio management teams work closely with our ESG, equity, and fixed income analysts to integrate ESG research holistically into their security analysis.

Sample engagement questions

How do you assess your exposure to risks like labor strikes, data-security breaches, or product recalls?

Which climate-related risks are you susceptible to and what processes are in place to mitigate those risks?

What are the key criteria used to compensate the executive team and how did you choose them? How are you holding executives accountable?

The sample questions listed are presented for illustrative purposes only. These questions are not indicative of all questions that may be asked during a typical engagement. There is no guarantee that these questions will be addressed in all company engagements.

The stewardship flywheel

In the team’s view, good corporate stewardship signals a company’s potential to outperform peers over time.

Integrating potential ESG-related financial risks into strategic planning can help a company become competitive and provide an incentive to improve stewardship practices further. Over time, this virtuous cycle may lead to resiliency and adaptability, create capacity for innovation, help extend market leadership, and potentially enhance financial returns. We call this self-reinforcing dynamic the stewardship flywheel, referring to the rotational force of a smaller wheel to accelerate a larger wheel.

Our ESG approaches

Learn more about our ESG approaches:

Gain insight

Read More

Listed equities: Aiming to fill a void in the impact ecosystem

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Expanding impact through the public bond markets

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Investing at the intersection of financial strength and ESG leadership

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Brewing storm: Are investors discounting climate risks and opportunities?

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ESG integration: A mosaic approach

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