Our Approach to Responsible Investing

Barrow Hanley is a signatory to the United Nations-supported Principles for Responsible Investment (PRI) and the Investor Stewardship Group (ISG). Our approach to responsible investing is underpinned by the BHMS Guiding Principles for Responsible Investing, and the key elements of the PRI and ISG.

While the integration of environmental, social, and governance (ESG) factors is new to many investment management firms, the consideration of these and other risk factors as part of our valuation analysis has long been part of the investment process at Barrow Hanley. We believe that the consideration of ESG factors in our investment process is aligned with the pursuit of superior risk-adjusted returns for our clients and their beneficiaries. This approach to investing makes sound business sense, and as an advocate for our clients and for the long-term futures of their beneficiaries, it is also, we believe, the right thing to do.

Barrow Hanley has more than a 30-year track record in managing socially-responsible mandates and employing ESG factors to our analysis in the construction of equity and fixed income portfolios. Across all of our investment strategies, we currently manage more than $5 billion in Socially Responsible Investing (SRI) related assets and we continue to manage "negative screened" portfolios for clients with specific restrictions and guidelines.

Management Engagement

Barrow Hanley takes its responsibility as a shareholder seriously. As a result, we aim to ensure that the management teams of investee companies are accountable for company performance and conduct. We will seek to act as a responsible steward of assets on behalf of our clients by maintaining and updating our Proxy Voting Policy as required, voting all proxies in a manner that is consistent with our proxy policy and specific client guidelines, and engaging a company’s board and management to facilitate change that we believe will enhance long-term shareholder value.

Our position as the second largest active value-oriented equity manager in the U.S.* enables us to gain direct access to senior management, further enhancing our ability to address and analyze relevant ESG factors during our research process. As a top 20 shareholder in more than 100 companies, our firm is also in a position to encourage company management to consider the sustainability of their company’s assets and to forcefully advocate for our clients.

Integrating ESG Factors into Our Research Process

Because our research process focuses on both sides of a company’s balance sheet - equity and debt – and is conducted by our equity and fixed income professionals working together as a single team, we are uniquely able to effectively integrate the consideration of ESG factors in both our stock and bond portfolios and to produce additional economic "value" for our clients. While Barrow Hanley utilizes ESG research and rankings from well-regarded third-party providers, our experienced internal investment team analyzes all relevant ESG inputs and reaches reasoned conclusions on an independent basis.

To be effective at ESG investing, a patient, long-term time horizon is required and the low turnover approach of the Barrow Hanley investment process over the past 30+ years has proven to be well suited for SRI portfolios. The long-term focus of the Barrow Hanley investment process further enhances our ability to be a responsible steward of our clients' assets.




* Pensions & Investments, May 29, 2017, based on U.S. institutional, tax-exempt assets as of December 31, 2016.

Our position as the second largest active value-oriented equity manager in the U.S.* enables us to gain direct access to senior management, further enhancing our ability to address and analyze relevant ESG factors during our research process.

As a top 20 shareholder in more than 100 companies, our firm is also in a position to encourage company management to consider the sustainability of their company's assets and to be an advocate for our clients.

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More on Our ESG Approach

  • ESG Policy Statement
  • Responsible Investing Committee
    • Lewis Ropp
      U.S. ESG Value, Lead Portfolio Manager
    • Rand Wrighton
      EME ESG, Lead Portfolio Manager
    • Ross Campbell
      Director of Responsible Investing
    • Brad Mickelson
      ESG Research Coordinator
    • Patti Andrews
      CCO/CRO
    • Matt Egenes, CFA
      Client Portfolio Manager Group
    • Dave Ganucheau, CFA
      Equity Portfolio Manager
    • Zane Keller, CFA
      Equity Analyst
    • Erik Micek, CFA
      Equity Analyst
    • Erik Olson
      Fixed Income Senior Analyst

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