ESG

LM Capital Group recognizes the importance of social, environmental and governance factors and their potential link to value creation for our clients. As fixed- income investors, we understand that the circumstances and risks facing issuers change over time. We believe it is imperative to understand the factors that are developing and receding around us to fully understand the investment risks in the fixed income universe and to fulfill our fiduciary duties to our clients.

Our approach to responsible investment is consistent with our overall investment approach. As globalization evolves, the world’s capital markets are becoming increasingly interrelated and interdependent, with political and social events often playing a significant role in economies around the world. LM Capital Group has long recognized the evolution of today’s financial trends and has a successful track record in the management of fixed income. LM Capital Group utilizes a global, macroeconomic approach when examining fixed income markets. The key to successful investing is understanding the factors and pressures on issuers and their management that will affect how the market perceives their risk.

As we assess the probabilities and financial impact of negative ESG events, it is important to recognize that we are not anticipating that something negative will necessarily happen. We are saying that we believe the market underestimates the probability and/or financial impact of a negative event.

LM Capital Group uses ESG factors across all of our assets under management. We believe that ignoring ESG factors is an unacceptable way to conduct fundamental investment analysis. We can better understand the risks facing fixed income issuers if we use all of the relevant information available to us.