Governance & Sustainability Report

Governance & Sustainability Report

Martin Currie reports on its achievements in integration of international principles for responsible investing (PRI) into its investment and governance activities


ACHIEVEMENTS IN 2016

  • Highest possible (A+) rating awarded by the PRI* for our governance and sustainability strategy
  • Top ranking (Tier 1) by the UK's Financial Reporting Council (FRC) for our statement of compliance with the UK Stewardship Code
  • Successful conclusion to collaborative engagement on ‘fracking’ practices in the oil & gas industry
  • Completion of proprietary industry frameworks, designed to aid integration

 

WHAT IS IT?

Governance and sustainability refers to factors that may impact the ability of companies to generate durable returns over the long term. It involves understanding the governance structures and culture of a company, employing a broad view of changes taking place in the world and assessing the impact these can have on a company’s cash flows, balance sheet, reputation and, ultimately, corporate value.

 

WHY DO WE DO IT?

As stewards of our clients’ capital we take a holistic view of investee companies, looking at all material information, whether quantitative or qualitative. There is compelling evidence that governance and sustainability factors correlate with returns over the long term, and therefore have to be incorporated by fiduciaries when assessing risks and opportunities.

 

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IMPORTANT INFORMATION: All investments involve risk, including loss of principal. Past performance is no guarantee of future results. An investor cannot invest directly in an index. Unmanaged index returns do not reflect any fees, expenses or sales charges.

Equity securities are subject to price fluctuation and possible loss of principal. Fixed-income securities involve interest rate, credit, inflation and reinvestment risks; and possible loss of principal. As interest rates rise, the value of fixed income securities falls. International investments are subject to special risks including currency fluctuations, social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets.

The opinions and views expressed herein are not intended to be relied upon as a prediction or forecast of actual future events or performance, guarantee of future results, recommendations or advice.  Statements made in this material are not intended as buy or sell recommendations of any securities. Forward-looking statements are subject to uncertainties that could cause actual developments and results to differ materially from the expectations expressed. This information has been prepared from sources believed reliable but the accuracy and completeness of the information cannot be guaranteed. Information and opinions expressed by either Legg Mason or its affiliates are current as at the date indicated, are subject to change without notice, and do not  take into account the particular investment objectives, financial situation or needs of individual investors.