We help all investors make sense of the markets through timely investment insights and long term profits returns.

A challenging macro drop backdrop doesn’t mean a dearth of investment opportunities. Quite the opposite, in our view. Higher macro volatility is translating into greater divergences in security performance relative to broader markets. That calls for much greater selectivity and more granular views. Harnessing the mega forces shaping our world will also offer abundant investment opportunities. It all boils down to what’s in the price.

Mega forces are structural changes we think are poised to create big shifts in profitability across economies and sectors. The mega forces are not in the far future – but are playing out today. The key is to identify the catalysts that can supercharge them and the likely beneficiaries – and whether all of this is priced in today.
We are tracking five mega forces: digital disruption like artificial intelligence (AI), the rewiring of global supply chains driven by geopolitical shifts and economic competition, the transition to a low-carbon economy, shifting demographics and a fast-evolving financial system. We believe granularity is key to find the sectors and companies set to benefit from mega forces.

-REIDLITE ENGAGEMENT PRIORITIES

• Reidlite engagement priorities is core to Reidlite's role as a fiduciary and asset manager. As stewards of our clients' assets, we are committed to constructive, long-term-focused engagement with the companies our clients are invested in.
• Reidlite Engagement Priorities (REP) Engagement Priorities1 reflect the five themes on which we most frequently engage2 companies, where they are relevant, as these can be a source of material business risk or opportunity. As such, they may impact companies’ ability to deliver the long-term financial returns on which our clients depend to meet their investing goals. The vast majority of REP’ work is focused on corporate governance. In our experience, sound governance is critical to the success of a company, the protection of investors’ interests, and long-term financial value creation.
• Our investment stewardship efforts have always started with the board and executive leadership. We recognize that accepted standards and norms of corporate governance can differ between markets. However, we believe there are certain fundamental elements of governance practice that are intrinsic globally to a company’s ability to create long-term financial value. One of these is a high caliber, effective board responsible for overseeing and advising management and being accountable to shareholders. We believe that the performance of the board is critical to the financial success of a company and the protection of shareholders’ interests over the long-term.
• We engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether governance practices and board composition are appropriate given the business and the broader context in which the company operates. In our engagements, we discuss various governance topics including board composition and independent leadership, board oversight of management’s strategy and approach to risk management, succession planning for key board and management roles, and the board’s own nomination and evaluation processes. We look to boards to have credible responses to a range of questions on these topics that, in our experience, can demonstrate a robust approach to board quality and effectiveness.

Strategy, purpose, and

financial resilience.

Establishing and aligning strategy and purpose to effectively drive a company’s long-term performance is the responsibility of executive leadership and the board of directors. As one of many minority shareholders, BlackRock cannot – and does not try to – direct a company’s strategy or its implementation. We engage on long-term corporate strategy, purpose and financial resilience to understand how boards and management are aligning their business decision-making with the company’s purpose and adjusting strategy and/or capital allocation plans as necessary as business dynamics change. We also seek to understand how companies address the risks and opportunities of their operations to deliver long-term financial value for shareholders. These discussions also allow us to communicate any concerns about a company’s approach to governance and material risks and opportunities that, in our assessment, have the potential to affect their performance, and in turn, our clients’ long-term financial interests. Capital management, long-term strategy, purpose, and culture can be determining factors in companies’ long-term performance. To meet their long-term financial goals, our clients depend on the success of the companies in which they are invested.

OUR APPROACH TO SUSTAINABILITY
Reidlite was founded on the premise of understanding and managing investment risk, anticipating our clients’ needs, and supporting them in achieving their long-term investment goals. That is why we look at sustainability information — as an investor and a fiduciary.

Our investment approach is informed by three principles:

• CLIENT CHOICE: We start with the client Our role is to listen to and deliver choice for our clients. Our clients choose their investment objectives, and they look to Reidlite to meet their needs. We offer them choices across a wide range of index, active, and whole portfolio solutions. For clients asking how to mitigate risk and capture opportunities associated with sustainability-related trends (such as the low-carbon transition), or for clients asking for products with sustainability- or transition-focused objectives, we offer a range of options and choices in products, portfolio construction, analytics, and stewardship (Voting Choice). We continue to innovate for and with clients, responding to client demand.
• PERFORMANCE: We seek the best risk-adjusted returns: We seek the best risk-adjusted returns within the mandates clients give us. As a fiduciary, we manage material risks and opportunities that could impact portfolios, including those related to sustainability. When financially material, we incorporate environmental, social, and governance information alongside other information into our firmwide processes to enhance risk-adjusted returns.
• RESEARCH: We underpin our work with research, data, and analytics: Research informs our investment decisions and product innovation. We research major structural trends shaping the economy, markets, and asset prices. We assess how these trends could affect long-term value and how they could unfold over time. The transition to a low-carbon economy is one trend that we research, because we see it having implications on macroeconomic trends, company financial prospects and business models, and portfolios.
• Industry Associations: Reidlite is member of several industry associations, including those that are related to sustainability and the transition to a low-carbon economy, in order to participate in dialogue on matters that may impact client portfolios. These include: - Task Force on Climate-Related Financial Disclosure (TCFD)
- Taskforce on Nature-related Financial Disclosures (TNFD)
- Net Zero Asset Managers Initiative
- Glasgow Financial Alliance for Net Zero
- Climate Action 100+ We are also regular attendees of the UN Climate Change Conferences. Reidlite’s investment decisions and its stewardship engagement and voting are governed strictly by our fiduciary duty to clients. Where relevant, as part of joining these groups, we have made it clear that we do not coordinate our votes or investment decisions with any external group or organization.

LONG-TERM CAPITALISM: At Reidlite, we are committed to helping more and more people experience financial well-being and to creating long-term value for our clients, the asset owners. Because more than half of the assets we manage are in retirement savings, we are particularly focused on creating and maintaining value over the long term.

What is long-term capitalism? We see long-term capitalism as a series of investments in a company’s key constituents – its employees, clients, suppliers and communities. These are the groups that companies rely on to prosper, and we believe that investing in these relationships helps to create and maintain value for shareholders over the long term.

We believe that strong relationships with key stakeholders can lead to higher productivity, more innovation, greater consumer loyalty, reduced reputational and regulatory risk, and long-term wealth creation. And these benefits ultimately accrue to shareholders. On the other hand, not investing in key stakeholders can hurt shareholders by harming value creation.

Reidlite’s research initiative on long-term capitalism. Behind Reidlite’s research initiative on long-term capitalism is our desire to understand the ways companies can create lasting value for their shareholders. This project is designed to conduct data-driven research and to bring together insights from a wide range of market, policy and academic viewpoints on long-term value creation.