We define responsible investing as an integrated function within our investment process that seeks, through fundamental credit analysis and assessment of environmental, social and governance (“ESG”) factors, to identify risk and opportunities across our investment universe.

As credit investors, we view ESG factors as potential drivers of credit risk that may influence financing costs, risk assessment valuations and performance of the issuers in whom MCQS managed funds and/or mandates invest. 

By embedding responsible investment into our bottom-up, fundamentally driven investment process, we enhance our ability to identify risk, potential value and opportunity, and, critically, to generate the best possible returns and outcomes for our clients.

Through our process, we work hard to ensure that the companies to whom we lend have sustainable cash flow generation and liquidity to pay the interest and principal on their debt.

Five Stages of Responsible Investment Integration

Our Responsible Investing Policies

Our Policy details the embedding of responsible investing into our Firm-wide five stage responsible investment integration process.

ESG considerations are embedded into the bottom-up fundamental analysis undertaken by our Research Analysts throughout our process, and by our Portfolio Managers in the investment decision-making stage.

Please Click Here for the latest version of the Responsible Investment Policy, and Click Here for our Engagement Policy.

A number of MCQS Strategies have a dedicated Statement of Intent. Such Strategies go further in their commitment to Responsible Investing by outlining their own approach and minimum expectations. For more information, please contact your regular sales coverage or email CQSClientService@cqsm.com

Active ownership

We seek to maintain an open dialogue with issuers in which we invest, using our position as a global credit provider to influence long-term change in the way companies operate or behave. 

Engagement forms part of a wider approach to the assessment of ESG factors. It provides opportunity to gather further information, which feeds into our bottom-up, fundamental analysis, and helps to deepen our understanding of material factors that underpin an issuer’s strategy, cash flow or valuation. 

Where relevant, it also provides opportunity to influence positive change in issuers’ business practices, disclosure and performance, that reduce material risks faced by companies over time.

As part of our framework, we adopt a three-pronged approach to engagement activity, with three key overarching engagement priorities, as outlined below

Transition to a Low Carbon Economy

Climate change presents both risks and opportunities to the world and to our business, which can be systemic and do not exist in isolation as financial implications are increasingly felt. 

As part of the integration of stewardship and ESG factors into our investment process, we seek to assess how environmental changes may impact the companies to whom we lend and in which we invest.

In our view, managing the impact of the transition to a low-carbon economy is essential to deliver the returns and outcomes sought by our investors, as well as playing our part to deliver the goals of the Paris Agreement. Indeed, addressing decarbonisation is now critical to ensure we mitigate risk of physical impacts of a changing climate and deliver opportunities for our clients.

This forms part of our Targeted Engagement Programme, where we look to engage with issuers to ensure they are net-zero aligned, and adopt strategies for climate change adaptation, resilience and mitigation.

Click Here for the latest MCQS Task Force on Climate-Related Financial Disclosures (TCFD) Report.

During our journey to net zero, we are committed to taking responsibility for our own business emissions. We have partnered with Carbon Footprint to offset the Scope 1, 2 and 3 emissions emitted across each of our offices and from staff business travel.

Signatory, Support & Industry Collaboration