The fund seeks capital appreciation in the long term by investing in companies across any size outside the United States.
The fund prefers a multi-manager investing approach with the aim of reducing volatility and downside risk.
The fund manages assets with the help of two sub-advisers namely Wellington Management Company LLP, and Schroder Investment Management North America Inc.
Each sub-adviser manages its segment of the fund’s assets to correspond with its distinct investment style and strategy.
The fund’s sub-sub-adviser is Schroder Investment Management North America Limited.
The sub-advisers’ investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.
Next, the research team invests in securities of U.S. and foreign issuers, including non-dollar securities and securities of emerging market issuers.
The team focuses on securities of issuers that seek opportunities to address or benefit from climate change, which include companies classified as promoting clean and/or efficient energy, sustainable transportation, water and/or resource management.
In addition, the team favors companies exhibiting low-carbon leadership and businesses that service such companies.
Wellington seeks to identify attractive companies that address environmental challenges and/or seek to improve the efficiency of resource consumption.
Schroder focuses on companies that have already recognized threats posed by climate change and form part of the solution to problems arising from climate change.
Also, Schroder prefers companies that seek to benefit from efforts to accommodate or limit the impact of global climate change.
Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.
The fund generally does not invest in major fossil fuel companies.