ESG Integrated Core

BRIGHT FUTURE SMALLER COMPANIES

Bright Future Smaller Companies is designed to identify the leaders of the future and benefit from the upside opportunities associated with smaller capitalization companies in the US that also exhibit ESG Leaders, ESG Evolvers, and Impact Leaders characteristics. This strategy offers the traditional benefits of small cap investing but with an explicit sustainability focus. We look for companies that are at the intersection of fundamental strength and ESG, choosing to hold names that are attractive in the eyes of our proprietary quality, sentiment, and valuation models as well as when viewed through the lens of our Positive Change Model.

Bright Future Smaller Companies is a diversified portfolio of 70-90 US small-mid cap stocks targeting an alpha* of 3% with market-like total volatility.

BRIGHT FUTURE QUALITY

Bright Future Quality seeks to capture the return potential and transformative power of the largest global companies. The strategy incorporates our proprietary ESG methodology within a next generation multi-factor process designed to deliver a core global equity strategy with lower total volatility, higher risk-adjusted returns, and superior ESG relative to the broader equity market. The portfolio’s investment logic is anchored on our proprietary quality model which employs a ‘contextual alpha’ perspective, seeking to capture opportunity according to individual companies’ earnings profiles. Importantly, every stock in the portfolio has a strong ESG profile along one or more of our Positive Change dimensions.

Bright Future Quality is well diversified across all economic sectors and regions.  The portfolio typically holds 120 – 150 global mega- large- and mid-cap names targeting an alpha* of 2% with lower-than-market total volatility.

Listed Impact,
UNSDG Aligned

ONE LIFE

The One Life strategy takes its inspiration from the World Health Organization (WHO)’s One Health concept[1], which is the study of the intersection of human, animal, and environmental health. Every investment in the portfolio has significant exposure to one or more of RadiantESG’s five impact themes, which on-align to the United Nations Sustainable Development Goals (UNSDGs)[2]

We begin by isolating companies that we believe will be tomorrow’s leaders driving a healthier future – companies with attractive company fundamentals and products and services significantly aligned to the UNSDGs. We use systematic engagement, traditional engagement, and active voting to leverage the power of our clients’ capital toward creating positive impact.

The strategy will not hold any company with products that are deemed to be obstructive to the SDGs in focus, companies with poor ESG profiles, or companies tied to severe controversies.

One Life is a focused portfolio of 60-80 global all-cap stocks targeting an alpha* of 3% with market-like total volatility.

POSITIVE TRANSFORMATION

The Positive Transformation strategy seeks to hold companies representing the technological ‘engine’ of the world economy that are driving the transition to a cleaner and more efficient economy.  Every investment in the portfolio has significant exposure to at least one of three RadiantESG impact themes, which on-align to the United Nations Sustainable Development Goals (UNSDGs).

We begin by isolating companies that we believe will be tomorrow’s leaders driving transformation – companies with attractive company fundamentals and products and services significantly aligned to the UNSDGs.  We use systematic engagement, traditional engagement, and active voting to leverage the power of our clients’ capital toward creating positive impact.

The strategy will not hold any company with products that are deemed to be obstructive to the SDGs in focus, companies with poor ESG profiles, or companies tied to severe controversies.

Positive Transformation is a focused portfolio of 60-80 global all-cap stocks targeting an alpha* of 3% with market-like total volatility.

All of our strategies benefit from our proprietary ESG Mosaic framework and our Positive Change Model, designed to capture ESG Leaders, ESG Evolvers, and Impact Leaders.

[1] Source:  One Health Tripartite (WHO, FAO, OIE) plus UNEP, 2021.

[2] Source: United Nations Foundation, United Nations Sustainable Development Goals, 2015

*Alpha is a measure of active return—the excess returns earned on an investment above the benchmark return.

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