At Equitile, we are optimists. We see that the world, in the long run, is becoming a better place; poverty is declining, and longevity is rising. We recognise, however, that the generation of long-term sustainable returns is dependent on stable, well-functioning and well-governed environmental, social and economic systems.
Collectively, our portfolio companies have a significant impact on how the world is shaped and so we like to understand, as best we can, the impacts and influences these companies have on the environment and society, for better and for worse. All companies exist within a wider ecosystem encompassing their workers, customers, suppliers, and society at large. We believe the most resilient and successful companies are ones which consider all these respective stakeholders’ interests. This means we only invest in companies providing a product or service which is beneficial to society and doing so in a responsible manner, with healthy relationships between itself and its customers, workers and suppliers.
We see innovation as a prerequisite of sustainable growth, permitting improved productivity and allowing companies to add more economic value using fewer resources. We therefore search for companies which make the economy more efficient while also, proportionately, striving to reduce their own environmental impact
A good governance structure is of prime importance for us. In the long run, no company can prosper without high quality governance and a healthy corporate culture. It must treat all its employees fairly and without discrimination, it must conduct its business legally, and it must compensate its management and staff appropriately, fostering an alignment of interests with shareholders. We do not tolerate companies whose management endanger both the capital of their shareholders and the jobs of their workers by using risky financial engineering. The financial management of the firm must be conducted in a responsible manner, allowing it to invest for future growth while surviving inevitable business setbacks.
We especially seek to avoid companies causing unnecessary environmental and social damage such as those engaged in pornography and exploitative financial practices such as payday lending, gambling, the manufacture and sale of controversial weapons, civilian firearms and tobacco.
For further details on our investment approach, please contact email@example.com