BBH Investment Management’s mission is to be the best at preserving and growing our clients’ capital over long periods of time. For over 80 years BBH Investment Management (IM) has performed its own investment research focusing on long-term capital preservation and the prudent management of risk relative to return. At the core of our investment process has always been an understanding that the path to generating attractive long-term investment returns is first and foremost, to reduce the likelihood of permanent loss.
We believe that inclusion of environmental, social and governance (ESG) criteria in our investment process enhances our ability to manage risk and achieve our long-term objectives. Across equity and fixed income investments, we believe that ESG criteria are important factors in our investment process.
Our approach to investing explicitly includes the consideration of ESG criteria and is guided by a set of core principles that are applied across the full breadth of our investment portfolios. Together they represent a time-tested approach that has built lasting client relationships and set us apart from our peers.
Our investment principles:
- focus on capital preservation
- conduct deep, bottom-up, fundamental research
- invest with a long-term perspective
- be disciplined and patient
- employ a value-based approach
The evaluation of ESG factors as part of our investment research process helps us effectively assess the long-term sustainability and durability of our companies and credits:
- Environmental – Entities that are judicious in their use of resources, are aware of climate risks and are appropriately mindful in their environmental impact may gain efficiencies that drive profitability. They are also less likely to create unforeseen liabilities that can erode enterprise value.
- Social – Maintaining high standards for internal and external conduct can help entities to build strong cultures, drive better long-term outcomes for all stakeholders, and limit adverse regulatory action.
- Governance – Analyzing the quality of management teams, ownership structures, and the framework of rules, practices and incentives under which organizations operate are cornerstone elements of long-term sustainability. Our view is that well-managed businesses, where management teams act like owners, are more likely to manage resources efficiently, create value for shareholders over the long-term, protect the rights of creditors and to maintain access to the credit markets. These are essential characteristics of businesses that we choose to own for our clients.
- Our team of approximately 50 equity and fixed income investment professionals are responsible for incorporating key ESG criteria into our investment analysis and decision-making process.
- Each of our investment teams employ a tailored approach that is best suited to their specific strategy while remaining consistent with our overall investment philosophy and process.
- We commit ourselves to the careful study of factors that could cause impairment of capital. As with any potential risk, if those associated with ESG are not adequately addressed and mitigated, it may inform our decision on a course of action with respect to that security.
- Through our bottom-up research on companies and industries, strong engagement with management and issuers, as well as our continual efforts to monitor the regulatory and governmental environment, we continuously refine our insights into how well ESG factors are being managed.
BBH IM provides investment management services to institutional and individual investors around the world. ESG criteria are well embedded in our investment process. We offer the capability to customize investment solutions aligned to client specific ESG goals or screening preferences.