Manager Overview

Munro is an independent global absolute return equity manager with a core focus on growth equities. Munro provides all investors, with an institutional quality, global fund manager with the ability to identify sustainable growth trends that are under appreciated and mispriced by the market, and the resulting winning and losing stocks. Munro focuses on absolute returns and seeks to generate meaningful, risk adjusted, absolute annualised returns to investors through the investment cycle, whilst maintaining a capital preservation mindset. The investment team is led by Nick Griffin, former Head of International Strategy at K2 Asset Management. Nick has a 13 year proven track record of strong absolute returns and outperformance over multiple market cycles. Munro is controlled owned by its partners who all work at the firm. The organisational stability created by this ownership structure allows Munro to recruit, and importantly retain, key staff over the long term. All partners are significantly invested in the fund, ensuring strong alignment between partners and investors. The business is Australian domiciled, with offices in Melbourne.

Manager's responsible investing approach

Munro is a signatory to the UN-backed Principles for Responsible Investment (PRI) and has committed to its six principles, it has policies to guide it through responsible investing and reports on this annually. For Munro, ESG integration refers to how ESG issues impact its financial analysis, stock selection and portfolio construction. The three elements of Munro's approach are:

1. ESG Score: Every long portfolio holding undergoes a proprietary ESG analysis which results in an ESG score. The ESG score is one of six qualitative factors that determine what Munro considers the appropriate earnings multiple and therefore valuation for the company.

2. Investing in climate change leaders: Companies in Munro's Areas of Interest may contribute positively to ESG outcomes.

3. Exclusions: Munro uses some negative screens or exclusions.

Munro recognises that investor engagement with policymakers is an important tool, especially for systemic risks like climate change. Advocacy is pursued collaboratively, for example through being a signatory to the Principles for Responsible Investment, a member of the Investor Group on Climate Change (IGCC) and a member of the Canadian Responsible Investment Association, it supports advocacy on both specific ESG issues (such as government policies on emissions reduction) and on promoting and developing responsible investment practices (such as how investors can best integrate climate change into their investment process).