Stance Equity ESG Large Cap Core:
Proving that with proper portfolio management, values alignment is free.
Clean Energy
Women in Leadership
Low Carbon Fooprint
No Weapons
No Tobacco
No Thermal Coal
Values
Stance Equity ESG Large Cap Core is a quantitative, actively managed, U.S. large cap strategy. Initially we identify companies that successfully manage sustainability‐related key performance indicators (KPIs) such as energy productivity, carbon intensity, water dependence, and waste profile. Additional KPIs relating to governance include capacity to innovate, unfunded pension fund liabilities, CEO/average worker pay, safety performance, employee turnover, leadership diversity, percentage tax paid, and % bonus linked to sustainability performance.
Excluded from consideration are companies engaged in weapons, tobacco, or thermal coal, as well as companies where women are not meaningfully employed in senior management and board positions.
Our data sources for our ESG value alignment process can be seen on the right.
Fundamentals
The second process within Stance Equity tests fundamental financial and risk factors for statistical significance as generators of alpha. The factors compete for inclusion on an annual basis and are adjusted based on accumulated learning. The resulting portfolio represents the intersection of the first two processes. The final process optimizes the portfolio to maximize diversification and reduce correlation. The portfolio is re-optimized and re-balanced to maintain its edge over competitors.