We received the Cymbria Annual Report this week. As many of you know, Cymbria is a major shareholder of, and shares its management team with, EdgePoint Wealth Management. Cymbria’s annual report is unlike any other. Most annual reports are full of regulatory and financial jargon that offers very little insight on what is going on with the company. What makes Cymbria’s report so good is the substantial and comprehensive investment commentary. This is because Cymbria is an investment holding company run by investors and is in line with how they communicate on a regular basis.
One section that caught our eye in the report was titled, “Responsible investing at EdgePoint”. We have included the article for your reference below. Many of our clients have been asking about ESG investing (Environmental, Social, Governance) and how it impacts our investment partners’ portfolio construction. When EdgePoint considers ESG, they ask, “how is this company making the world a better place in the future?”. As part of their due diligence, the investment team is able to assess ESG as a long-term risk to their potential investment. Before making an investment, EdgePoint investigates the company to determine if they are promoting safe work environments and diversity. Have they curbed environmental contagion; excessive remuneration; and exploitation of workers? And, are they doing a good job of allocating capital? In effect, EdgePoint believes that sustainability and responsibility is interlinked with future financial results.
Cymbria Annual Report 2020 – Responsible Investing at EdgePoint
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