LIM Scores Above Peers in Recent PRI Assessment

Longfellow Investment Management Co., LLC (LIM) became a signatory to the Principles for Responsible Investment (PRI) in 2014*. Founded in 2005, PRI is a global network of investors who are committed to integrating Environmental, Social and Corporate Governance (ESG) considerations into their investment practices, ownership policies, and business strategies. By signing on to PRI, LIM confirms its view that ESG considerations are important when evaluating issuers and industries as these considerations highlight risks that may affect investment performance. Signing on to the PRI initiative also reflects the firm’s continued effort to source quality investment opportunities. LIM is majority women-owned and strives to be a good corporate citizen through our diversity initiatives and employee benefit policies.
 
To maintain its signatory status, LIM is required to provide responses to two questionnaires annually: one regarding strategy and governance and one regarding fixed income sectors. The PRI uses these reports to assess firm compliance with its principles, and more broadly, the firm’s approach to ESG integration. The result is a score for each category on the two questionnaires. LIM’s results are shown below:
 

“LIM became a PRI signatory to confirm our commitment to understanding and evaluating the risks highlighted by ESG factors,” said Barbara McKenna, Managing Principal of LIM. “We believe these engagement efforts with PRI will complement our continued integration of ESG factors into our corporate credit research. We incorporate this analysis into our investment process because, as fixed income investors, it is our responsibility to understand the risks before investing our clients’ assets. We strongly believe this analysis provides additional value to our clients.”

To learn more about how LIM incorporates ESG factors into our credit research process, please request our whitepaper by contacting us at Info@LongfellowIM.com.

*PRI Signatory Disclaimer
The PRI is an investor initiative in partnership with UNEP Finance Initiative and the United Nations Global Compact. In order to become an investment management signatory, a manager needs to commit to six initiatives. These include: incorporating ESG issues into investment analysis, decision-making processes, and firm ownership policies and practices and report on the firm’s activities and progress towards this; seeking appropriate disclosure on ESG issues by the entities client assets are invested; promoting acceptance and implementation of the Principles within the investment industry; and working with the PRI Secretariat and other signatories to enhance their effectiveness in implementing the Principles. These principles are voluntary and aspirational. For most signatories, the commitments are a work-in-progress and provide direction for their responsible investment efforts rather than a checklist with which to comply. The only mandatory requirements are paying an annual membership fee and committing to completing the PRI Reporting Framework on an annual basis. PRI signatory status does not imply any level of skill or investment acumen nor does it imply a rating, favorable or unfavorable, of the signatories or of signatory status. It does not constitute investment advice, is not a recommendation, offer or solicitation to buy or sell any securities, or to adopt any investment strategy and should not be relied upon as such. LIM’s status as a PRI signatory is year to year and LIM is currently a PRI signatory.

**Rankings Disclaimer
The grading displayed above represents the grading of the PRI Association based on an annual questionnaire completed by LIM. Changes to LIM’s policies and procedures relating to its responses to the questionnaire throughout any year may positively or negatively impact LIM’s score in subsequent years. Past grading is not an indication of a future score. The questions asked in the survey are subjective and LIM is not aware of the specific criteria for the grading above, nor are we aware of whether the grading parameters change from year to year. Because of this, accuracy cannot be guaranteed. It is in the sole discretion of the reader whether to rely on the opinions and grading shown. There is no direct correlation between investment performance and the ESG grading displayed above. LIM did not pay any fees to participate in the survey other than its annual fee to PRI as part of its signatory status and is unaware of the number of participants in the survey. As such, LIM does not know the percentage of advisers that received grades above the median rating. The ratings displayed should not be read to infer the LIM is a top-rated performer or the top-rated performer. LIM began participating in the survey in 2016 and has displayed all its grades above. The grading above does not represent any one client’s experience or its investment portfolio’s performance as it reflects LIM’s responses to a questionnaire. If a client has certain investment restrictions that prohibit LIM from utilizing the ESG considerations in its investment process, LIM complies with that client’s guidelines. For certain sectors of the fixed income market, there is insufficient public data from which to integrate ESG scoring in the investment process. At present, LIM is able to integrate ESG in its corporate credit, securitized, sovereigns, and municipal bond research. The information contained in this document does not constitute investment advice, is not a recommendation, offer or solicitation to buy or sell any securities, or to adopt any investment strategy and should not be relied upon as such. It does not take into account an individual investor’s particular investment objectives, strategies, tax status, or investment horizon.