In 2016, Nicola Wealth Management signed on as a signatory to the United Nations supported Principles for Responsible Investment (PRI), a leading advocate of responsible investment. The PRI supports a network of international investors who are committed to integrating ESG (environmental, social, and corporate governance) factors into their investment decisions and ownership policies.
Nicola Wealth Management incorporates ESG principles into its investment analysis and decision-making process to encourage responsible investment practices without sacrificing performance for our clients. We are strong believers in a diversified, broad asset allocation, and we look to select investments that offer a combination of cash flow and capital appreciation potential with the least amount of risk for our clients by focusing on high-quality, well-run companies.
To ensure that we maintain these standards, ESG ratings and research from dedicated ESG research providers are utilized in conjunction with our fundamental analysis to identify potentially material environmental, social, and corporate governance risks, and considered as part of the final investment decision.
On a monthly basis, we run both quantitative and dedicated ESG screens of our internally managed equity investments to monitor for changes in ratings and occurrences of material ESG controversies among our holdings. Any significant changes to holdings will be reviewed and discussed in one of our tri-weekly Portfolio Management Investment Meetings. The investment case for each position will be reviewed in conjunction with the materiality of this new information and a determination will be made.
As a PRI signatory, we are dedicated to implementing the six Principles put forth by the organization in the management of our client’s assets.
Principles for Responsible Investment
- We will incorporate ESG issues into investment analysis and decision-making processes.
- We will be active owners and incorporate ESG issues into our ownership policies and practices.
- We will seek appropriate disclosure on ESG issues by the entities in which we invest.
- We will promote acceptance and implementation of the Principles within the investment industry.
- We will work together to enhance our effectiveness in implementing the Principles.
- We will each report on our activities and progress towards implementing the Principles.