Why choose this strategy?
- As part of a core equity allocation that provides diversified exposure to US equities and aims to provide attractive performance with a risk profile similar to a broad US equity market index.
- As an alpha-generating complement to a more passive equity allocation.
- To gain access to the growth potential associated with a diverse set of long-term, sustainable investment themes and potentially improve the overall carbon footprint and sustainability profile of a portfolio.
Investment strategy
- The managers implement a high conviction approach to security selection, aiming to outperform a broad US equity index over time with a low turnover, high active share portfolio of 40-60 stocks.
- The managers use a thematic approach in idea generation, investing in companies they believe offer solutions to the major transitions the world is going through: demographic, environmental, technological and governance.
- The managers conduct detailed fundamental research in selecting companies that they believe are well-managed, are expected to benefit from strong, sustainable competitive advantages, and have demonstrated a solid financial structure while avoiding irresponsible risks.
- The managers invest in stocks they believe to be priced at a significant discount to their estimate of intrinsic value.
- The team aims to maximize exposure to companies with a positive impact on the UN Sustainable Development Goals (SDGs), while avoiding those whose activities or products inhibit the achievement of the goals.
