Benguela takes the responsibility of protecting our clients’ capital and their shareholder rights very seriously. We believe that we have a duty to promote good corporate citizenship and integrity among listed entities. If through our fundamental research process we uncover inferior Environmental, Social or Governance practices, we will engage the company’s Board and share our insights with our clients and the market at large – whether we are invested in a company or not. Benguela is a signatory to the United Nations Principles for Responsible Investing.
ESG analysis is fully integrated into our security analysis and is one of the six factors used to derive the proprietary Benguela Quality Score. We highlight that ESG has been incorporated into our quality score since day one. We believe that incorporating ESG factors into the valuation process enhances investment outcomes and reduces downside risk to clients’ capital.
We take proxy voting very seriously and, on principal, do not abstain from voting. We recognise that we are in a position of trust in respect of client investments and their voting proxies. We have a duty to act with due skill, prudence and care when voting proxies granted to us. Our voting decisions are based on Benguela’s Proxy Voting Policy which encapsulates the principles of King IV, the law, the global gatekeepers of Responsible Investing and best practice among global peers. The ultimate goal of our decisions is to best serve the long-term interests of our clients.