ABSTRACT
This chapter focuses on the issues and challenges that arise for asset managers when evaluating the impact of governance, social, environmental and ethical (gsee) factors on the financial performance of companies. It outlines Morley's approach to integrating these issues into the investment process. The chapter aims to answer the common questions: Why should investors integrate analysis of gsee issues into the investment process? What are the challenges of this approach? How can gsee analysis be integrated with 'mainstream' investment? Does gsee analysis add or detract value from investment performance? Morley Fund Management is the fund management arm of Aviva, the UK's largest insurance group that was formed through the merger of Norwich Union, Commercial Union and General Accident in late 1999. Fundamental to Morley's investment philosophy is a focus on probability. Morley's analysts develop investment themes based on the gsee issues that have been identified through research.
