The Social Choice Equity investment strategy seeks favorable long-term total return while investing in stocks that meet certain environmental, social, and governance (ESG) criteria.
Through a proprietary quantitative model that closely tracks the returns of the Russell 3000 Index, the investment strategy gives special consideration to certain environmental, social, and governance (ESG) criteria and provides broad U.S. equity market exposure while minimizing relative risk versus the benchmark.
More specifically, the strategy uses a detailed optimization process to approximate the overall risk/return characteristics of the Russell 3000. The ESG evaluation process favors companies that are strong stewards of the environment, devoted to serving local communities and society in general, committed to high labor standards for their own employees and those in the supply chain, dedicated to producing high quality and safe products, and managing their companies in an exemplary and ethical manner.
Social Choice Equity portfolios are subject to certain risks such as market and investment style risk. Because social criteria exclude some investments, the Social Choice Equity investment strategy may not be able to take advantage of the same opportunities or market trends as portfolios that do not use such criteria.
This material is provided for the informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate.