Responsible Investing

Paradice recognises the importance of responsible investing in its investment process. We are an active investment manager, seeking to deeply understand the companies in which we invest. For us, considering Environmental, Social and Governance (ESG) factors alongside pure financial metrics make sense – it helps to drive more informed decisions so that we can seek to enhance value for our clients.

We consider responsible investing (RI) to be an umbrella term encompassing a range of investment strategies which apply ESG information and the associated stewardship practices. In a Paradice context, ESG integration and stewardship are our key RI activities. How this is carried out by each of our investment teams is governed by our RI policies and frameworks.

Our investment teams are responsible for ESG integration (incorporating financially material ESG factors into investment analysis and decision making) and for undertaking corporate engagement and proxy voting (key components of ‘stewardship’). The approach to ESG integration is based on risk or value, for the purpose of enhancing risk-adjusted returns for our clients (as opposed to being driven by ethical or sustainability considerations). In recognition of the fact that ESG issues can require specialist knowledge and ongoing focus given they are constantly evolving, Paradice has a dedicated ESG Team. The ESG Team assists our portfolio managers and analysts as required, and leads the development and application of tools which support integration.

As part of our commitment to RI , Paradice is a signatory to the Principles for Responsible Investment (PRI). We are also guided in our day-to-day practice by our RI Policy, as well as other policies which touch on aspects relevant to RI such as proxy voting and modern slavery.