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Authors

  • Hamish Galpin
    What real-world impacts did we achieve through our engagements in the first half of 2019?
  • Will Pomroy
    To accurately capture the ESG risks of small- and mid-cap stocks, investors should analyse the companies themselves.
  • 03/04/2019
    Equities
    Will Pomroy
    The success of a business is aligned to the satisfaction of employees
  • 05/10/2018
    EOS
    Kimberley Lewis
    Many delegates used Global Goals Week to call for better corporate reporting in relation to the UN Sustainable Development Goals (SDGs) and greater collaboration between stakeholders. But, as the lack of standardised data on SDG alignment poses a challenge to investors, we explain how our engagement efforts can inform investment decisions.
  • 14/08/2018
    Equities
    Will Pomroy
    Company overview Techtronic Industries is one of a number of consumer discretionary or industrial manufacturing companies within our portfolio. We consider these companies to be, from an engagement perspective, ideal investments as each has multiple touch points with different SDGs. Techtronic is a Hong-Kong listed company focused on the US consumer market, with predominantly Chinese manufacturing operations for its power tools and floor-care products, principally sold under its Milwaukee brand. •Market capitalisation: $10bn •Leadership: Joseph Galli Jr, CEO; Horst Julius Pudwill, Chair •Operational scope: Hong Kong-listed with a majority Asia-based workforce, but principally a US sales market. Investment case The attraction of the stock is its exemplary innovation record, which has resulted in it rapidly taking market share in the industry verticals it has chosen to target. This was evident to us in a recent visit to the global R&D centre of Milwaukee – one of the most impressive company visits that Hamish Galpin, Lead Manager of the Fund, has undertaken in his 29 years as a professional stock picker. From a financial perspective, if the company delivers on its aims of releasing innovative products, achieving further increases in market share and expanding into new markets, it should sustain a strong growth profile for a number of years to come. The stock has a similar margin and return profile to its larger and better-known competitor, Stanley Black and Decker, and we believe its slightly higher return on equity and price-to-earnings ratio are justified by the track record and quality of the business.