A TRUE GLOBAL REACH
Since its establishment in 2008, Glenn Hill has been dedicated to providing clients with value-added investment solutions. While our investment strategies, clients, and assets have experienced substantial growth since our inception, there are key guiding principles that have remained steadfast. These principles serve as the foundation of our approach and shape our decision-making process.
1. Always act in the clients' best interests
2. Conduct yourself in a moral and legal manner.
3. Be fiercely competitive to succeed.
4. We base our investment strategies on evidence-based research
5. Place a focus on financial stability
6. Provide chances for our employees to contribute to both our success and their own success.
Adhering to these principles has proven to be advantageous for us and we believe it is the key to achieving lasting client satisfaction and overall success as a firm. These principles form the bedrock of our responsible investing approach, influencing the investment strategies we recommend to clients as well as shaping the operations of our company.
Team-Based Methodology
Our implementation of responsible investment in our strategies follows a collaborative team-based approach, aligning with our overall investment processes. Our Strategy Investment Research, Investment Analytics & Data, Investment Stewardship, and Portfolio Management teams work diligently to facilitate responsible investment practices. The Head of Responsible Investment collaborates with these diverse groups to coordinate ESG initiatives. Reporting to our Global Head of Portfolio Management, the Head of Responsible Investment maintains a dotted line to one of our Co-CEOs.
Investment philosophy and principles
Our investment strategy is founded on the principle that prices in liquid capital markets effectively incorporate all publicly available information. This encompasses a wide range of factors related to a portfolio company, including its strategy, financial and nonfinancial performance, risk profile, capital structure, social and environmental impact, and corporate governance practices. We believe that securities prices accurately reflect investors' overall expectations of risk and return, and that market competition drives prices towards fair value.
While we believe that market prices generally reflect a company's ESG policies, we also recognize the potential benefits of incorporating ESG standards to mitigate risks and enhance investment returns for our clients. Specifically, we advocate for the following principles:
1. Integration of ESG factors into portfolios: We believe that incorporating ESG factors into investment portfolios can effectively manage risks and improve long-term performance. By considering environmental, social, and governance aspects, investors can gain a more comprehensive understanding of the companies they invest in and proactively address potential risks.
2. Client-driven integration of ESG: We believe that investment managers should carefully integrate ESG considerations when clients express a desire for investment solutions that align with specific ESG goals. By incorporating ESG factors based on client preferences, we aim to achieve measurable ESG outcomes without significantly sacrificing expected returns or diversification.
Through these practices, we aim to provide our clients with investment strategies that not only consider ESG factors to manage risks but also align with their broader sustainability objectives.
ESG investment processes and strategies
Our ESG beliefs are reflected through the broad integration of ESG factors across all our investment strategies, as well as the provision of specialized equity and fixed income strategies that specifically aim to achieve ESG-related outcomes.
Incorporating ESG factors into our investment processes is integral to our risk management approach. Our portfolio construction is guided by the following fundamental principles of investing:
1) Targeted return drivers backed by solid research;
2) Diversify among issuers, industries, and nations as appropriate;
3) Daily price information should be taken into account, and portfolios should be systematically implemented by carefully balancing expected returns, costs, and risks.
Current Ownership
Our responsibility as an investment advisor to our clients extends beyond the initial purchase of securities. We recognize the potential for improved returns through better governance practices, which can result in increased future cash flows to shareholders or a reduced discount rate in the market. To uphold these principles, our Investment Stewardship team actively promotes best-in-class governance practices and oversees material ESG-related risks.
Our stewardship efforts encompass various activities including engagement, proxy voting, and participation in trade shows and organizations. These actions reflect our commitment to active ownership and responsible investment practices. For a comprehensive overview of our active ownership activities, please refer to our Investment Stewardship Statement and Annual Stewardship Report, which provide detailed information on our engagement initiatives and voting practices.
Targeted ESG strategies
We provide targeted sustainability and social strategies that incorporate ESG and also add more emphasis on ESG criteria by aiming for particular ESG outcomes. ESG factors are incorporated into these strategies' widely diversified, value-added systematic investment solutions through cutting-edge processes. Our track record managing sustainable and socially-screened strategies, which spans more than a decade.
Contribution to the industry
In addition to managing investments for our clients, we actively strive to improve the functioning of the investment sector. This involves various initiatives such as collaborating with regulators to enhance market mechanisms, advocating for transparency, and diligently safeguarding our clients' interests throughout the investment process. As part of our commitment to fostering market improvement, we consistently provide valuable input to regulators to inform their decision-making and promote positive change.
As an example, we strongly opposed a proposed practice initiated by the U.S. Securities and Exchange Commission ("Commission") that involved considering wider bid-ask spreads for small-cap issuers. Our opposition was based on our belief that smaller bid-ask spreads ultimately benefit investors. Following the pilot program, the Commission recognized the merits of our perspective and decided against implementing the proposed changes.
Local Community and Industry Involvement
We proactively seek opportunities to have a positive impact by engaging in collaborations with regional organizations and industry-wide associations. This commitment stems from our dedication to the communities we serve and the communities in which we operate.
In 2019, our employees actively participated in various local community initiatives alongside organizations such as the Red Cross, Junior Achievement, Second Harvest, the Salvation Army, and local food banks like Second Harvest and Central Texas. Together, they contributed over 1,400 hours to these causes, making a positive impact on their local neighborhoods.
We have actively increased our involvement and support for various industry programs aimed at promoting diversity and inclusion, particularly targeting underrepresented talent. This support extends beyond local organizations and includes partnerships with specific universities such as Cornell's Women in Investing Conference and Chicago Booth's Women in Investment Management. Additionally, we have collaborated with the Robert S. Toigo Foundation since 2013, which focuses on the professional development and leadership advancement of underrepresented individuals in the financial services sector. We regularly participate in Toigo's spring Catapult event, and in the past, we have hosted Toigo's flagship annual leadership conference, the Fall Apex, in 2014, 2016, and 2019. Currently, we are in discussions to potentially host the event again in 2021.
2020 – an unprecedented year
The recent extraordinary circumstances have underscored the need for an integrated approach to building resilient and thriving businesses, further reinforcing the investment rationale for incorporating environmental, social, and governance (ESG) considerations. The ongoing crisis has demonstrated the significance of adopting sustainable strategies and fostering resiliency for the long term. In response to the global pandemic, our team swiftly took action, establishing a cross-portfolio Covid-19 taskforce in early March 2020. This taskforce served as a platform for executives from our portfolio companies to exchange insights, experiences, and best practices, fostering collaboration and addressing the challenges posed by the pandemic.
Facilities and Operations
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We are dedicated to minimizing the environmental impact of our business operations through the implementation of sustainable practices, policies, and infrastructure. The primary hubs for our employees are our corporate office in Charlotte and our Charlotte office. These two locations, which are the only ones owned by Glenn Hill, have received recognition for their exceptional commitment to sustainability. Our Delaware headquarters has been honored with a three-star rating by Austin Energy Green Building, while our Charlotte office has achieved LEED Gold certification, affirming its adherence to high environmental standards.
As part of our continuous commitment to sustainability, we have been actively exploring measures to reduce our carbon footprint. Additionally, in March 2020, we publicly endorsed the Taskforce for Climate-Related Financial Disclosures (TCFD), demonstrating our support for transparent reporting and addressing climate-related risks and opportunities in our operations.