Maintaining investor values while providing access to a world of private investment opportunities
ESG adds value for our investors
Environmental, social, and governance (ESG) investing is a relatively new approach that continues to evolve. ESG criteria developed gradually over the last few decades, and private fund managers must keep adapting their interpretations to meet changing investor demands.
Emerging fund managers must be aware that ESG criteria are likely to play a larger role in the future. We integrate ESG with other fundamental factors when making investment decisions. ESG issues are also a meaningful part of our discussions with fund managers.
A Commitment to Our Investors
Higher returns from ESG investing
Firms with high environmental, social, and governance (ESG) ratings are better at retaining customers and employees, cutting costs, and managing the regulatory and compliance landscape.
It is possible to focus on ESG without sacrificing returns, in fact, we have seen higher returns from ESG-focused entities.
The ESG Framework at Ashton Global
ESG in the investment process
Incorporating ESG criteria is increasingly crucial for private fund managers due to the concerns of their investors. High-net-worth individuals have the money to invest in causes they support and generally have little interest in taking unnecessary ethical risks.
Our portfolio managers implement ESG by using several different approaches. We evaluate the effects of ESG on revenue and cash from operations, cost of capital, and brand perception for the companies we invest in. We also carefully evaluate the environmental and labor standards for our potential investments.
Accountability and Transparency
Corporate governance is a key focus
We maintain a vigilant focus on governance because it is an easy and effective way to mitigate risks. We prefer independent boards, few related party transactions, and simple organization structures.
Good governance also involves establishing procedures that embody best practices and a focus on compliance.
Investing in Water
Most conventional assets offer lower expected returns following substantial economic setbacks during the coronavirus pandemic, making water-related investments more attractive.
Niche Investments in Water Infrastructure
There is an enormous unfulfilled demand for water infrastructure. Private investors who meet that demand may be able to earn excess returns while supporting the sustainable development of public resources.
ESG Considerations for Private Fund Managers
ESG criteria developed gradually over the last few decades, and private fund managers must keep adapting their interpretations to meet changing investor demands.
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