We define responsible investment as the practice to incorporate Environmental, Social and Governance (“ESG”) factors in investment decisions and active ownership. We therefore think of responsible investment as the third dimension – after risk and return – that we consider when analysing an investment. As long-term stewards of our clients’ capital, CRUX is committed to assessing the lasting profitability of the companies in which we invest. We believe our responsibilities include protecting the interests of our clients from the impacts of financial and non-financial risks.
For CRUX, it means a commitment to:
- Integrating analysis of relevant ESG issues into investment processes where appropriate
- Active ownership of our investee companies in order to manage risk and enhance long-term sustainable returns
- Taking a transparent approach to our responsible investment activities, both to clients and the wider public
By taking an active approach towards ESG issues, we aim to further protect our clients’ interests and make a positive impact to society at large. We describe our investment methodology as an ESG-integrated approach rather than negative screening approach. We are aware of environment and broader sustainability considerations, but do not place formal restrictions on our funds’ investment universe.
CRUX has a recognisable and well-established investment approach, at the heart of which CRUX seeks to deliver long-term capital growth through actively managed long-only equity portfolios. Engagement and proxy voting form the two main pillars of our active ownership approach.
As stewards of our clients’ assets, CRUX advocates for sustainable business practices and sound corporate. Stewardship is the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries, leading to sustainable benefits for the economy, the environment and society. The UK Stewardship Code is a voluntary code set out by the Financial Reporting Council, comprising of 12 ‘apply and explain’ Principles for asset managers and asset owners.
CRUX embraces and complies with the principles of the Code and is working towards becoming a signatory. CRUX’s primary focus is to always ensure that our fund managers are the best possible stewards of our clients’ assets, selecting each investment on its ability to generate long-term sustainable returns.
Engaging in ESG issues is becoming increasingly important in the investment industry, and CRUX is committed to being part of this change.
CRUX has been a signatory to the United Nations Principles for Responsible Investment (“UNPRI”) since 2018. CRUX’s most recent UNPRI rating was an A/B overall. The Principles are a voluntary and aspirational framework for incorporating ESG issues into mainstream investment decision-making and ownership practices. Signing the internationally-recognised UNPRI allows CRUX to publicly demonstrate our commitment to responsible investment, and places us at the heart of a global community seeking to build a more sustainable financial system. The annual assessment report holds CRUX accountable and offers a framework to strive for year-on-year improvement through the lens of ESG integration.
At the heart of CRUX is its people and the team spirit under which we operate. We see our people as the foundation blocks of the business and consequently have a strong desire to retain key high performing individuals. Our retention strategy has developed into one which leads to individuals holding equity within the business and many employees hold ordinary shares in the company. In 2018, CRUX implemented an employee options scheme, with the purpose of recognising employee contribution and further aligning individuals with the growth of the business.
CRUX recognises the benefits of diversity and promotes it within the company. We are committed to making the organisation reflective of society at large and are cognisant of the need to increase minority representation within the investment management industry.
At CRUX, our employees are the face of corporate responsibility. We therefore believe in creating an environment that allows them to contribute to charitable activities. Employees are provided with two (fully paid) volunteering days annually to allow them to contribute to our community.
CRUX supports two charities per annum which benefit the community locally to the CRUX main office in London. These two charities are chosen by employees, with an internal vote allowing each individual employee to engage with the charities.
If staff wish to participate in individual fund-raising activities outside of their work, CRUX will support these endeavours and where possible offer a matched funding programme.
In 2021/22 CRUX has supported, Children's Hospices Across Scotland, Thames21, and Snow Camp. 2022 also marks the 7th consecutive year of CRUX’s sponsorship with Cure Parkinson's.
SFDR ESG Statement
This statement relates to EU SFDR Regulation 2019/2088 for the CRUX Global Fund.
Sustainable Finance (SFDR)
CRUX does not consider principal adverse impacts (“PAI”) of its investment decisions on sustainability factors as prescribed by Article 4 SFDR (Regulation (EU) 2019/2088). This is because CRUX believes its responsibilities include protecting the interests of its clients from the impacts of both financial and non-financial risks. We describe our investment methodology as an ESG-integrated approach rather than a negative screening approach. We are aware of environmental and broader sustainability considerations but do not place formal restrictions on our funds’ investment universe. CRUX believes this gives them the flexibility to properly understand and screen investments which meet the needs of their clients. CRUX will continuously review its position in relation to PAI.