Environmental, Social and Governance Philosophy Statement

Fisher Investments believes ESG investors are best served by an investment process that considers both top-down and bottom-up factors. Integrating ESG analysis at the country, sector and stock levels consistent with clients’ investment goals and ESG policies maximises the likelihood of achieving desired performance and improving environmental and social conditions worldwide.

Environmental, Social and Governance Investing

Fisher Investments considers environmental, social and governance issues in the investment and portfolio construction process. Further, Fisher Investments regularly screens and tailors its investment approach for separately managed accounts depending on any particular social and environmental guideline mandated by the client.

Top Down Investment Process

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• ESG issues are among many drivers considered by Fisher Investments' Capital Markets Analysts and Fisher Investments' Investment Policy Committee when developing country, sector and thematic preferences. Governmental influence on public companies, regulatory environments, and market reforms impacting private property, labour and human rights are among multiple ESG influencers considered for all of Fisher Investments' clients when shaping an initial prospect list of portfolio positions.
• Fisher Investments' Securities Analysts perform fundamental research on prospective investments to identify securities with strategic attributes most consistent with its top-down views and with competitive advantages relative to their defined peer group. The fundamental research process involves reviewing and evaluating a range of ESG factors with Fisher Investments' Investment Policy Committee prior to purchasing a security with the goals of identifying securities benefiting from ESG trends and avoiding those with underappreciated risks. These factors include, but are not limited to, shareholder concentration, corporate stewardship, environmental opportunities & liabilities, and human or labour rights controversies. In situations where security level issues violate a client mandated ESG policy or present an inordinate risk to a company’s operational or financial performance, or the firm believes they present undue headline risk to share price performance, Fisher Investments would choose not to invest in that company.

As part of the investment process, Fisher Investments evaluates the risk ESG issues may present to stock performance. ESG issues are examined on a case-by-case basis, and are willing to consider the potential impact of all types of ESG concerns. Further, Fisher Investments' ongoing analysis of global political drivers can influence security selection tied to potential political or regulatory risks companies face surrounding ESG issues.

• Fisher Investments' emphasis in understanding the dynamics of political, social and environmental outcomes provides insights on how ESG issues affect equities. Fisher Investments monitors key social policies driving wealth creation and economic growth, including infrastructure investment, tax policy, free trade, property rights and government reform, as well as social factors.
• Political factors affecting these social policies are also integral to Fisher Investments' top-down analysis (e.g., election cycles, legislative gridlock, etc.), and Fisher Investments maintains a keen awareness of regulatory risk.
• Fisher Investments' analysts monitor advancing energy efficiency (especially within Industrials and Technology companies), nuclear power risks, resource extraction implications (e.g., labour strikes and resource nationalization) and litigation risk tied to environmental impact, among other factors.

Portfolio Construction Process

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Factors to be considered when constructing an ESG portfolio.

How Fisher Investments discharges its responsibilities under the UK Stewardship Code of the Financial Planning Council.

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In accordance with Fisher Investments’ and its affiliates’ respective shareholder engagement policies, please review the proxy voting reports provided on this page for the annual disclosure on how such policies have been implemented for the previous year. As noted in such policies, the proxy voting reports only include data for clients or funds, as applicable, who have authorized and directed Fisher Investments or one of its affiliates to vote proxies. Only certain Fisher Investments Institutional Group clients and funds have given such authorization and direction. Therefore, there is no proxy voting report (and therefore no annual disclosure under the applicable shareholder engagement policy) for clients of Fisher Investments Luxembourg, Sàrl or non-institutional clients of Fisher Investments Europe Limited.

*As of 31/12/2020 Fisher Investments had over $19 billion USD in its ESG/SRI asset under management.