Software & Services
Software & Services |
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Engaging the workforce
Having an engaged workforce is extremely valuable. The software and services companies held in our global portfolios engage their employees by promoting responsible values and with initiatives that make a difference.
A multinational professional services company we own seeks to embrace diversity in its business, not just within its own workforce – in 2018 they were ranked number one on Thomson Reuters Diversity and Inclusion Index, for the third consecutive year – but also in its supply chain. By the end of 2018, its Diverse Supplier Development Program had developed 144 small, medium and diverse suppliers towards its target of 170 by 2020.
Another one of our holdings, a German multinational software company, creates a culture of inclusion with its groundbreaking Autism at Work program, integrating people with autism into the workforce where their skills add value. 93% of the company’s employees acknowledge the importance of pursuing purpose and sustainability. The company’s Corporate Social Responsibility (CSR) scheme has three main pillars: building digital skills, accelerating best-run nonprofits and social enterprises, and connecting employees with a purpose to help ensure everyone can participate in and benefit from the digital world. In 2018, its digital skills and coding programs trained 34,000 teachers, engaged 2.8 million young people and spanned 93 countries. In addition, environmental and charitable activities, such as using GPS technology and in-memory databases to preserve endangered elephants and rhinos, all add to their employees’ sense of purpose. As too do the philanthropic efforts of an American multinational technology company, which gives broadly to priority areas of education, human services (affordable housing) and family-friendly arts and culture.
Further, an American multinational financial services company we own focuses specifically on financial inclusion. It offers access to finance and is committed to collaborating with partner banks to provide bank accounts to 500 million people by 2020. They have reached 40 million people with their free financial literacy programs, using their technology and global reach to provide free, accessible and innovative financial education resources.
When companies understand that social, environmental and economic activities and performance are interlinked, and reflect this in their culture, it can strengthen employee engagement, and have a positive impact on recruitment and retention.
RISK CONSIDERATIONS
There is no assurance that a portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that the market value of securities owned by the portfolio will decline. Accordingly, you can lose money investing in this strategy. Please be aware that this strategy may be subject to certain additional risks. Changes in the worldwide economy, consumer spending, competition, demographics and consumer preferences, government regulation and economic conditions may adversely affect global franchise companies and may negatively impact the strategy to a greater extent than if the strategy's assets were invested in a wider variety of companies. In general, equity securities' values also fluctuate in response to activities specific to a company. Investments in foreign markets entail special risks such as currency, political, economic, and market risks. Stocks of small-capitalization companies carry special risks, such as limited product lines, markets and financial resources, and greater market volatility than securities of larger, more established companies. The risks of investing in emerging market countries are greater than risks associated with investments in foreign developed markets. Non-diversified portfolios often invest in a more limited number of issuers. As such, changes in the financial condition or market value of a single issuer may cause greater volatility. Option writing strategy. Writing call options involves the risk that the Portfolio may be required to sell the underlying security or instrument (or settle in cash an amount of equal value) at a disadvantageous price or below the market price of such underlying security or instrument, at the time the option is exercised. As the writer of a call option, the Portfolio forgoes, during the option's life, the opportunity to profit from increases in the market value of the underlying security or instrument covering the option above the sum of the premium and the exercise price, but retains the risk of loss should the price of the underlying security or instrument decline. Additionally, the Portfolio's call option writing strategy may not fully protect it against declines in the value of the market. There are special risks associated with uncovered option writing which expose the Portfolio to potentially significant loss.
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