SASB Report 2023

We integrate environmental and social considerations into our investment decisions, and we also aim to promote responsible business practices in our own operations. We are delighted to share this report, which gives clear, consistent and comparable information on these activities.
SASB Report 2023 (pdf, 367 KB)

Overview of our business

Meridiem Investment Management Limited (MIM Ltd) is an investment firm based in London. Our only business is global, discretionary investment management. We are proudly independent and owned by our employees, aligning our interests with clients’ objectives.

We are guided by three principles:

  1. Real returns – Our investment philosophy is aligned with our clients’ objectives – to deliver long-term returns ahead of inflation. We consider risk as the potential for permanent capital loss; and we aim to provide a sense of security through common-sense investing.
  2. Partnership – We believe in the power of partnership. This cultural mindset is deeply rooted in our team. The investment team comprises 23 experienced investment professionals who are committed to providing a personal service to all our clients. We are 100% owned by our employees; this creates stability and focuses us on achieving clients’ objectives.
  3. Stewardship – When we buy shares in companies, we become business owners. As stewards of our clients’ capital, we have an opportunity and a responsibility to contribute to the durable success of these businesses, by taking the time to understand and support their strategy.

This is the second year that Meridiem has reported under the SASB standards. We integrate environmental and social considerations into our investment decisions, and we also aim to promote responsible business practices in our own operations. We are delighted to share this report, which gives clear, consistent and comparable information on these activities.

Further information can be found in our Stewardship Code Report and our TCFD-aligned Climate Report.


Transparent Information and Fair Advice for Customers

SASB Code

FN-AC-270a.1

Accounting Metric

(1) Number and (2) percentage of covered employees with a record of investment-related investigations, consumer- initiated complaints, private civil litigations, or other regulatory proceedings

Disclosure

0

None of our employees have a record of investment-related investigations, consumer-initiated complaints, private civil litigations, or other regulatory proceedings.

SASB Code

FN-AC-270a.2

Accounting Metric

Total amount of monetary losses as a result of legal proceedings associated with marketing and communication of financial product-relatedinformation to new and returning customers

Disclosure

£0.00

We have not been subject to any legal proceedings associated with marketing and communication of financial product-related information to new and returning customers.

SASB Code

FN-AC-270a.3

Accounting Metric

Description of approach to informing customers about products and services

Disclosure

Our investment approach is founded on transparency and clients understanding the investments they own.

We invest directly in global equities and bonds, holding 25-40 equity positions in client portfolios. Our exposure to third-party funds is generally very low, with the result that clients have a clear view of what is held in their portfolios. This also improves transparency of costs.

Clients have direct access to their designated investment managers who are responsible for suitability, portfolio construction and investment outcomes. We do not have relationship managers to ensure that we have clear lines of communication and increased accountability. This further aligns interests and accountability to clients.

Investment managers usually meet clients on at least an annual basis and update clients regularly by email or telephone. Clients receive written updates throughout the year, including quarterly investment updates, our biannual newsletter, View, and our annual stewardship report. In client meetings we also provide clients with third-party ESG metrics and updates on our stewardship activities that can be tracked over time.

We have a rigorous process for ensuring portfolios remain suitable for clients. Our initial suitability assessment is conducted before a portfolio is opened and suitability is reviewed annually.


Employee Diversity and Inclusion

SASB Code

FN-AC-330a.1

Accounting Metric

Percentage of (1) gender and (2) diversity group representation for (a) executive management, (b) non-executive management, (c) professionals, and (d) all other employees

Disclosure

Investment management requires good judgement. We believe that a team’s judgement can be improved by bringing together people who have different views and perspectives. We are therefore proud to employ people from a wide range of backgrounds.

In addition to the gender and age diversity set out below, we have a range of educational backgrounds and university degrees in more than ten different subjects. These include economics, modern languages, history, chemistry, physics and philosophy.

The table below outlines the gender and age diversity of Meridiem’s 64 employees.

Gender
Executive teamExecutive teamInvestment teamInvestment teamTotalTotal
Dec 23Dec 22Dec 23Dec 22Dec 23Dec 22
Female60%60%39%41%55%56%
Male40%40%61%59%45%44%
Age
Executive TeamInvestment TeamAll Employees
Dec 23Dec 22Dec 23Dec 22Dec 23Dec 22
20-290%0%13%0%9%7%
30-390%0%33%41%41%41%
40-4940%40%25%36%25%26%
50-5940%40%17%14%20%21%
60-6920%20%12%9%5%5%

We aim to create an inclusive culture that promotes idea generation and constructive challenge. We strive to create an environment where people feel valued and are able to openly express their views and bring their true selves to work. We have introduced a number of initiatives to promote this culture, including having an open-door policy where senior management are always available to talk to staff across the business.

We recognise that measuring the success of these policies is difficult as there are no standard metrics available for monitoring inclusion. That said, in 2021 we began conducting a staff survey that focuses on wellbeing and how people feel about their roles.

Using the research conducted by Oxford University’s Centre for Wellbeing in collaboration with recruitment firm Indeed, we measure the key drivers of wellbeing semi-annually. These scores provide insight into how our team feel at work and why. Since we began tracking these figures in 2021, we have noted that our wellbeing ratings remain in the top quartile of all companies surveyed. We continue to strive to improve wellbeing as we believe that this will foster an environment where everyone can thrive.

Please find below our average results from 2021 to 2024, compared with the average for all companies surveyed.

Finally, we are committed to supporting the future of diversity in our industry. In 2023 we worked with the Sutton Trust to provide inspirational speakers, as well as with the Social Mobility Foundation and Girls are Investors (GAIN) to provide work experience opportunities and summer internships to students from less advantaged economic backgrounds or to encourage more women to enter the investment industry.


Incorporation of Environmental, Social and Governance Factors in Investment Management and Advisory Services

SASB Code

FN-AC-410a.1

Accounting Metric

Amount of assets under management, by asset class, that employ (1) integration of environmental, social, and governance (ESG) issues, (2) sustainability themed investing, and (3) screening

Disclosure

As described below, ESG factors are integrated into all investment decisions for all client portfolios.

We do not have a distinct sustainability-themed investment strategy. For all client portfolios, our investment research seeks to identify companies that are benefitting from long-term structural shifts and changes in the way society operates. As described below, we believe that we are in the foothills of a major shift towards managing the planet’s resources more sustainably. The roles that individual companies play in this shift and the extent to which they manage their business operations responsibly are important considerations in every investment decision we make.

We do not apply firm-wide ethical screening because we consider our clients to be best placed to decide how their ethical views are reflected in their investment principles. We are happy to discuss these with clients.

Many of our private clients and charity clients have ethical restrictions in areas such as tobacco, alcohol, gambling, pornography and fossil fuels. Our focus on companies with strong and growing cash flows for the longer term often precludes many companies that tend to screen poorly on an ethical basis.

SASB Code

FN-AC-410a.2

Accounting Metric

Description of approach to incorporation of environmental, social, and governance (ESG) factors in investment and/or wealth management processes and strategies

Disclosure

As long-term shareholders in a focused list of companies, we have a responsibility to consider any factor that might impact the durability or value of our clients’ investments. Environmental, Social and Governance (ESG) are all factors that might impact the long-term value of a company. Opportunities and risks related to ESG are therefore key considerations in every new investment we make, as well as our ongoing decision to hold shares in a business.

In the long term, we believe that well-chosen equities, benefitting from structural tailwinds and bought at a reasonable valuation, will be the main driver for achieving real returns. A key element of this approach is recognition of the global shift towards more responsible management of our planet’s resources. This is being driven by the demands of a rising population, an expanding middle class and the need to address the challenges posed by climate change and biodiversity loss.

Poor governance and environmental and social risks are business risks. To maintain their social licence to operate, companies must address these risks, particularly given rapidly changing regulation and consumer preferences. We therefore look for management teams that understand and plan for these risks.

All research is carried out by our in-house investment team, not a separate ESG department. Owning shares in 25 to 40 companies means that we can devote a considerable portion of our research resources to each company and gain a full understanding of the material risks they face. This also allows us to punch above our weight in terms of influence.

We use a range of sources to obtain this information, predominantly the information we obtain directly from companies. For some years, we have been actively encouraging companies to be more transparent in their disclosure of ESG metrics. We supplement this with information provided by third parties such as Credit Suisse’s HOLT, ISS, Sustainalytics, sell-side analysts and industry specialists.

We are pleased that our efforts have been recognised with a 5 Globe Sustainability Rating and Low Carbon Designation from Morningstar for our:

  • TM Veritas Equity Strategy Fund
  • Protea Fund – Veritas High Equity
  • Protea Fund – Veritas Core Equity with Fixed Income.

These ratings are a natural outcome of our investment approach and we do not target a particular score. Further details are available on request.

Since the end of 2022, we have been publishing an annual TCFD-aligned (Task Force for Climate-related Financial Disclosures) climate report.

SASB Code

FN-AC-410a.3

Accounting Metric

Description of proxy voting and investee engagement policies and procedures

Disclosure

We are long-term investors who aim to protect and grow our clients’ assets in real terms. When we buy shares in companies, we become business owners, often for periods of 5-10 years, or even longer.

Our stewardship activities are therefore an integral part of our investment approach.

How we behave as shareholders is closely aligned with the long-term nature of our clients’ objectives. This is because we recognise the interdependent relationships between our clients, ourselves, the companies in which we invest and wider stakeholders.

Our stewardship work is guided by our four principles:

  • Invest in high-quality companies: we will not hold shares in companies where we have identified a material risk to the long-term viability of the business.
  • An aversion to box ticking: we focus on what is most material to each business.
  • A culture of partnership with management teams: we value progress in pursuit of long-term sustainability.
  • A focus on all stakeholders: we recognise that businesses exist within society and therefore have a duty to all stakeholders, not just shareholders.

Given our investment approach and the in-depth research that we carry out prior to becoming shareholders, both in relation to financial and non-financial issues, we are unlikely to become shareholders in a company that faces significant, material risks. Our stewardship activities are, therefore, generally focused on issues which will enhance the long-term durability of the company but which, if not addressed by the company, would not change our investment thesis.

We also regard shareholder voting as an important means of communicating with companies and we therefore exercise our right to vote on behalf of clients. We seek to understand each company’s individual circumstances and history. This enables us to apply our voting principles flexibly and appropriately to support company’s long-term success.

In line with our stewardship principle of focusing on materiality, each voting decision is taken on a case-by-case basis by our investment analysts, based on independent judgement, analysis, and the outcome of engagements with companies. As we aim to invest only in well-run companies that have strong management teams and governance structures, we typically expect to vote in-line with board recommendations.

We subscribe to a proxy voting service provided by Institutional Shareholder Services (ISS), a global leader in corporate governance and responsible investment advice. ISS provides us with in-depth analysis of shareholder meeting agendas and voting recommendations.

However, we do not automatically follow ISS recommendations. As highlighted above, each voting decision is taken on a case-by-case basis. We consider ISS reports, alongside our own analysis, experience and dialogues with the company concerned, and apply independent judgement when reaching each voting decision. Should ISS recommend voting against company management, where appropriate we will engage with company management to improve our understanding prior to making a decision.

We are delighted to have been included on the signatory lists to the UK Stewardship Code every year since 2021. Our latest Stewardship Code Report is available on our website.


Financed Emissions

SASB Code

FN-AC-410b.1

Accounting Metric

Absolute gross financed emissions, disaggregated by (1) Scope 1, (2) Scope 2 and (3) Scope 3

Disclosure

Financed emissions [tCO2e]20192020202120222023*
Corporate stocks and bonds [S1+S2]59,04249,41546,70743,69748,077
Corporate stocks and bonds [S3]664,341402,133580,687786,421751,775

SASB Code

FN-AC-410b.2

Accounting Metric

Total amount of assets under management (AUM) included in the financed emissions disclosure

Disclosure

Included AUM [$]20192020202120222023*
Corporate stocks and bonds3,542,076,2164,730,375,6876,531,457,6025,456,619,2327,162,523,450

SASB Code

FN-AC-410b.3

Accounting Metric

Percentage of total assets under management (AUM) included in the financed emissions calculation

Disclosure

SASB Code

FN-AC-410b.4

Accounting Metric

Description of the methodology used to calculate financed emissions

Disclosure

To calculate our financed emissions, we have followed the Partnership for Carbon Accounting Financials (PCAF) methodology for listed corporate equities and bonds. We used our current market value of the investment and the Enterprise Value Including Cash (EVIC) of the issuing parent as of 31 December 2023. The Scope 2 emissions are built on a waterfall logic which prioritise location-based emissions where available and then market-based emissions. We also use reported data where available and, if not, estimated data based on Sustainalytics’ propriety methodology. However, because greenhouse gas emissions are reported on a year delay, i.e. 2022 emissions data is released in 2023 reports, we are using 2022 emissions data.

In 2023, we started incorporating our share of the financed emissions of the third-party funds we are invested in. The share was calculated as our market value in the third-party fund divided by the total AUM invested in that third- party fund.

We did not include cash and supranational bonds in our calculations because they are not considered to have any associated emissions according to PCAF.

Financed emissions formula


Business Ethics

SASB Code

FN-AC-510a.1

Accounting Metric

Total amount of monetary losses as a result of legal proceedings associated with fraud, insider trading, anti-trust, anti-competitive behaviour, market manipulation, malpractice, or other related financial industry laws or regulations

Disclosure

£0.00

In this reporting period, we have no monetary losses as a result of legal proceedings associated with fraud, insider trading, anti-trust, anti-competitive behaviour, market manipulation, malpractice, or other related financial industry laws or regulations.

SASB Code

FN-AC-510a.2

Accounting Metric

Description of whistleblower policies and procedures

Disclosure

Whistleblowing is the reporting of suspected wrongdoing in relation to our activities. This can include bribery, fraud or other criminal activity, miscarriages of justice, health and safety risks, damage to the environment and any breach of legal, regulatory, or professional obligations.

A full copy of our policy on whistleblower policies and procedures is available on request.

The aims of our approach to whistleblowing are to:

  • Encourage openness and confirm that we will support whistleblowers who raise genuine concerns under our policy, even if they turn out to be mistaken following an investigation.
  • Provide an internal mechanism for reporting, investigating and remedying any wrongdoing in the workplace.
  • Convey the seriousness and importance that we attach to identifying and remedying wrongdoing.
  • Confirm that concerns will be taken seriously, investigated appropriately and the whistleblower’s confidentiality will be protected whenever possible, and
  • Reassure employees that they can raise a genuine concern if they believe the disclosure is in the public interest, without fear of reprisal.

Assets Under Management

SASB Code

FN-AC-000.A

Activity Metric

(1) Total registered and (2) total unregistered assets under management (AUM)

Disclosure

We do not have any unregistered assets under management.

SASB Code

FN-AC-000.A

Activity Metric

Total assets under custody and supervision

Disclosure

We do not have any assets under supervision.

Disclaimers

Meridiem Investment Management Limited is authorised and regulated by the Financial Conduct Authority in the conduct of its investment business. It is registered under number 923827. For more information click on www.fca.org.uk. Meridiem Investment Management Limited is a discretionary investment manager and does not offer investment advice; and no information contained within this document should be construed as such. If you are in doubt, you should seek advice from a financial adviser. For information about how we process and secure Personal Information, please read our Privacy Notice in the Regulatory Information section of our website www.meridieminvestment.com

Past performance should not be seen as an indication of future performance. The value of investments and the income from them may fluctuate and are not guaranteed. Investors may not get back the whole amount they have invested. Changes in rates of exchange between currencies may cause the value of investments to diminish or to increase. This document is not a financial promotion, and it is being provided for information purposes only.

Sustainalytics provides company-level analysis used in the calculation of Morningstar’s Historical Sustainability Score. Morningstar®. All rights reserved. The information contained herein: 1) is proprietary to Morningstar and/ or its content providers; 2) may not be copied or attributed; and 3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Meridiem Investment Management Ltd does not have a sustainability investment objective.