RESPONSIBLE INVESTING

Environment, Social

and Governance

Hayborough Investment Partners (Hayborough) believes the thoughtful incorporation of responsible investment practices, including the analysis of Environmental, Social, and Governance (ESG) factors can help drive investor returns.

A key part of our investment process and indeed one of our “Five Pillars” is to place a heavy focus on culture within a business. We want to expand further on that however, so we are committing to incorporate a wider array of ESG factors when making an investment decision.

Hayborough has committed to these practices in our flagship fund, the Hayborough Opportunities Fund. The incorporation of these factors has been agreed upon and adopted by the entire investment team. The adoption of the framework is the responsibility of the investment team. Hayborough’s Responsible Investment Statement is intended to educate our partners on the ESG factors incorporated into our investment framework.

WHY

Sustainability Matters

We believe a sustainable investment approach is more likely to help grow and preserve your investment in the longer term and, more specifically, that:

ESG factors can have a material impact on long-term risk and return outcomes and these should be integrated into the investment process.

Taking a broader and longer-term perspective on risk, including identifying sustainability themes and trends, is likely to lead to improved risk management and new investment opportunities.

Climate change poses a systemic risk, and investors should consider the potential financial impacts of both the associated transition to a low-carbon economy and the physical impacts of different climate outcomes.

Stewardship (or active ownership) supports the realisation of long-term shareholder value by providing investors with an opportunity to enhance the value of companies and markets.

Consequently, we believe that a sustainable investment approach that considers these risks and opportunities is in your best interests as an investor.

PRINCIPLES

Responsible Investing

Hayborough engaged the United Nations Principle for Responsible Investing (“UNPRI”) in June 2021 to formalise our commitment to responsible investing. Further, we actively sought their engagement and guidance when drafting our responsible investing policy.

We believe the UNRPI to be the leading body when it comes to adopting and reporting responsible investing practices.

The UNPRI lists six key principles for responsible investment as follows;

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Principle 1

We will incorporate ESG issues into investment analysis and decision-making processes.

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Principle 2

We will be active owners and incorporate ESG issues into our ownership policies and practices.

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Principle 3

We will seek appropriate disclosure on ESG issues by the entities in which we invest.

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Principle 4

We will promote acceptance and implementation of the Principles within the investment industry.

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Principle 5

We will work together to enhance our effectiveness in implementing the Principles.

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Principle 6

We will each report on our activities and progress towards implementing the Principles.

The Principles for Responsible Investment were developed by an international group of institutional investors reflecting the increasing relevance of environmental, social and corporate governance issues to investment practices. The process was convened by the United Nations Secretary-General.

In adopting the Principles, we as investors publicly commit to adopt and implement them, where consistent with our fiduciary responsibilities. We also commit to evaluate the effectiveness and improve the content of the Principles over time. We believe this will improve our ability to meet commitments to beneficiaries as well as better align our investment activities with the broader interests of society.

ESG FACTORS

Our Approach

Responsible Investment is not a one size fits all approach. Our investment team analyse a range of factors and outcomes to assess ESG compliance. We apply both positive and negative screens to our investment decisions.

The following table outlines our key considerations when it comes to adoption of ESG standards.

INVESTMENT INSIGHTS

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