Internally Managed Solutions
Philosophy and Approach
Research-driven: As fiduciaries, we believe ESG-integrated research adds value and should be integrated into the investment process. We do not have social or environmental agendas. We believe sustainable investing is simply smart investing.
Performance-oriented: Our ability to take a wider view of the investment landscape through a sustainable investing lens can help identify risks that can be managed and opportunities that can be captured. We believe investors focused on sustainability should not have to compromise on risk or return.
Platform approach: Our decades of experience as sustainable investors working with socially and environmentally conscious investors has taught us that there is no silver bullet – no one approach will work for all clients. We have developed a sustainable suite of strategies leveraging our research and data-driven platform to intentionally serve investors with diverse views and goals.
Our sustainable suite of investment strategies all have deep ESG integration at the core and varying levels of SRI exclusions and Thematic emphasis to meet the needs of a diverse client base.
Sustainable Investing Equity Strategies
ESG Core US Equity
Driven by fundamental research, refined with integrated ESG analysis
35-50 Securities
Max positions sizes greater of 5% or benchmark weight
Up to 15% Int’l
≤10% cash
Growth, value, and quality criteria
Large, mid, and small cap opportunity set
Average ESG score > S&P 500
Excludes “Worst in Class” ESG-rated securities and those with significant hidden ESG-related liabilities
Benchmark S&P 500
ESG Equity Income
Market-leading companies with higher-than-average dividends refined with integrated ESG analysis
45-55 Securities
Max position sizes greater of 5% or benchmark weight
Up to 15% Int’l
≤ 10% cash
Mostly large cap with limited mid/small cap stocks
Expected turnover 20-35%
Benchmark S&P 500
Secondary Benchmark Russell 1000 Value
ESG Core
International Equity
Driven by fundamental research, refined with integrated ESG analysis
45-65 Securities
Max positions sizes greater of 5% or benchmark weight
≤10% cash
Growth, value, and quality criteria
>90% of portfolio >$10B market cap
Up to 10% out of EAFE benchmark
Excludes “Worst in Class” ESG-rated securities and those with significant hidden ESG-related liabilities
Average ESG score > EAFE Score
Benchmark MSCI EAFE
Low Carbon Core US Equity
Driven by fundamental research and carbon risk analysis
40-65 Securities
Max positions sizes greater of 6% or benchmark weight
Up to 15% Int’l
≤10% cash
No traditional energy exposure
Excludes top toxic and carbon emitters, top fossil fuel reserve holders, coal fired electric utilities
Weighted average CO2 intensity ≤50% of benchmark
Benchmark S&P 500 ex energy
Sustainable Opportunities
Driven by fundamental research and environmental thematic analysis
40-60 securities
Max positions sizes greater of 5% or benchmark weight
Up to 40% Int’l
Renewable energy
Every efficiency
Pollution prevention
Green building
Sustainable water and agriculture
Excludes top toxic and carbon emitters, top fossil fuel reserve holders
Benchmark Russell 3000
Focused Environmental Opportunities
Concentrated thematic strategy driven by environmental and fundamental analysis
30-60 Securities
Max position sizes of 7%
Only companies with material direct product, service, or business model exposure to environmental innovation
Wide latitude across cap size, sectors, and geographic regions
Not benchmark focused, though the MSCI World Index will be used to frame strategy exposures
Sustainable Investing Fixed Income Strategies
ESG Core Taxable Fixed Income
High quality core fixed income driven by ESG-integrated credit research
Intermediate duration
Investment grade
15-40 individual bonds (dependent upon size of assets managed) with tactical allocations to other diversifying fixed income asset classes
Diversified by asset class and sector
Macro view on interest rates and economic outlook informs portfolio construction
ESG-integrated credit analysis drives selection of individual corporate bonds
Excludes: “Worst in Class” ESG-rated securities and those with significant hidden ESG-related liabilities
Average ESG score > benchmark
Benchmark: Bloomberg Barclays Intermediate Gov’t / Credit Index
Low Carbon Core Taxable Fixed Income
High quality core fixed income driven by ESG and climate integrated credit research
Intermediate duration
Investment grade
15-40 individual bonds (dependent upon size of assets managed) with tactical allocations to other diversifying fixed income asset classes
Diversified by asset class and sector
Macro view on interest rates and economic outlook informs portfolio construction
ESG and climate integrated credit analysis drives selection of individual corporate bonds
No traditional energy sector exposure
Excludes top carbon and toxic emitters
Weighed avg CO2 intensity < 50% of benchmark
Benchmark: Bloomberg Barclays Intermediate Gov’t / Credit Index
Municipal Impact Fixed Income
High quality core municipal strategy driven by ESG and use of proceeds impact analysis
Intermediate duration
Investment grade
15-40 individual bonds (dependent upon size of assets managed) with tactical allocations to other diversifying fixed income asset classes
Above market income
Tax-Exempt bonds selected using ESG and impact-integrated credit analysis
Green bonds included as appropriate
Focus on general obligation and revenue bonds with special attention on sectors such as higher education, clean water, affordable housing, and public transportation
Benchmark: Bloomberg Barclays 5-Year Muni Index
Customization – Our suite of strategies often meets the needs of clients as structured, though we have the ability to dynamically layer in additional exclusionary (SRI) and inclusionary (Thematic) factors where desired.
Reporting
Clients in our proprietary strategies receive ongoing manager commentary and portfolio reporting.