The fund seeks capital appreciation in the long term by investing in large-size companies in the United States.
The sub-advisor’s investment process is designed to identify high-quality companies that are sustainable leaders. The team believes sustainable leaders are companies with superior environmental, social and governance records.
The research team narrows the investable universe to a list of companies with positive ESG practices, and attractive business fundamentals.
The team believes companies that meet its ESG requirements or sustainability criteria typically have attractive sustainability data and policy reporting,
In addition, the team also considers companies that meet earnings, return on capital and growth criteria.
Next, the team employs a bottom-up financial analysis to review a range of metrics including board diversity, climate change policies, and supply chain and human rights policies.
The portfolio is so constructed to focus its investments in a particular sector or sectors of the economy. The sub-advisor has the flexibility to invest up to 20% of its net assets in securities of foreign issuers.
However, the fund will not invest in companies with material exposure to agricultural biotechnology, coal mining, hard rock mining, nuclear power, tar sands, tobacco, or weapons/firearms.
The fund also avoids companies facing what it estimates are temporary issues involving animal welfare, environmental, governance, human rights, product safety, or workplace matters.