The fund seeks to replicate total return performance of the benchmark index in the long term by investing in companies in the United States.
The sub-advisor’s passive investment process is designed to highlight companies with outstanding environmental, social and governance performance.
The sub-advisor believes using ESG factors may have a positive financial impact and can mitigate risk and add value to a portfolio.
Next, the research team looks for companies that are sustainability leaders, including those seeking to use more renewable energy, reduce greenhouse gases, and improve water efficiency.
The team analyzes a company across five key categories such as environment; community and society; employees and supply chain; customers; and governance and ethics.
The fund excludes corporations that explore for, extract, process, refine, and transmit coal, oil, and gas; burn fossil fuels to make electricity; or possess carbon reserves.
The fund also avoids companies that produce nuclear energy, nuclear weapons, civilian firearms, military weapons, tobacco, Genetically Modified Organisms, or alcohol; or are gambling enterprises.
The fund seeks to replicate total return performance of the benchmark index before fees and expenses by investing in mid-and large-size companies outside the United States.
The sub-adviser’s 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 foreign companies that adhere to environmental, social and governance factors.
The team analyzes a company across five key categories such as environment; community and society; employees and supply chain; customers; and governance and ethics.
In addition, the team also evaluates companies involved in industries that may impose substantial risks and/or costs on society.
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 excludes companies that explore for, extract, produce, manufacture or refine coal, oil or gas or produce or transmit electricity derived from fossil fuels or transmit natural gas or have carbon reserves.
Additionally, the fund avoids companies that have significant business involvement in genetically modified organisms, firearms, military weapons, nuclear power, alcohol, tobacco, adult entertainment and gambling.
