Artemis Alpha Trust | ESG

The Board’s primary focus is to promote the long-term success of Artemis Alpha Trust plc (the 'Company') for the benefit of the Company’s shareholders. In doing so, the Board has regard to the impact of its actions on other stakeholders, the environment and the community. The Company’s ESG values are aligned with those of the Manager, Artemis Fund Managers Limited.

Artemis' stewardship team is specifically dedicated to supporting fund managers by providing insight, research and analysis, discussion, and challenge on ESG and stewardship matters, including:

• Identifying and incorporating a wider set of risks and opportunities into investment processes, including ESG factors.
• Monitoring and escalating issues with companies and exercising shareholder rights at company meetings.
• Working collaboratively to develop and promote best practice internally and across the industry.

Further information on how the Company discharges its responsibilities to investee companies is given in the s172 Report within the Strategic & Business Review of the Annual Financial Report.

Full details of Stewardship, ESG and Engagement and Voting can be found on the Artemis website.

Investment strategy

The Company employs a long-term value investing strategy to pick stocks. The framework is based on valuing companies using fundamental analysis and sizing positions according to the attractiveness of share prices relative to the Manager's view of their value. The Company's strategy is underpinned by a core principle that the key driver of long-term value is achieving a high and sustainable return on capital employed.

Companies that do not adhere to strong governance, look after their employees, or fail to recognise environmental and societal harm risk inhibiting their long-term potential. The investment process requires a focus on the ESG risks and opportunities present in each business and industry. The Board recognises that the most material way in which the Company can have an impact on ESG is through responsible ownership of its investments. 

The Manager actively monitors ESG risks and opportunities within the portfolio primarily through a fundamental and bottom-up driven research process for monitoring existing and evaluating prospective investments. This will include matters relating to material environmental, human rights and social considerations that will ultimately impact the profitability of a company or its stock market rating.

Engagement

The Manager frequently engages with management teams on strategy, performance, capital allocation, incentive alignment, risk, governance and communication. Some examples of how the Company engages with investee and prospective investee companies can be found within the Annual Financial Report.

The approach to diversity and inclusion, both as an investor and in the Manager’s working environment, is an increasingly important issue for stakeholders.

Full details can be found within the Stewardship Report.

As a Company by far the greatest impact made is through the investments held. The Manager also recognises the need to reduce carbon footprint.

Full details can be found within the Stewardship Report.

Improving equality of opportunity is integrated into the activities of the Artemis Charitable Foundation.

Full details can be found within the Stewardship Report.

The value of investments may fall as well as rise. Past performance is no guarantee of future returns. This document is issued for information purposes only and is not to be construed as an advertisement or a public offering of any investment. Nothing in this document constitutes investment, legal, tax or other advice. You must ensure you understand the risks associated with any investment you consider and read all relevant disclosure documentation.