Not all "quality" is the same. Being narrowly focused on either Growth or Value styles can lead to a volatile return profile. Quality can be found in both cyclical and defensive companies. ESG is a key component of quality and a material contributor to client outcomes. Company engagement is a superior approach than divestment when considering ESG in an Australian equities portfolio. Where there is no clear path to a satisfactory ESG profile, excluding a company for investment is the only way to ensure responsible capital allocation. Protecting capital in down markets is the foundation for superior returns – and quality investing, with a long-term investment horizon, protects shareholder wealth on the downside, while capturing steady capital growth. - Craig McCourtie, Northcape Capital on Portfolio Construction Forum