The goal of Vision Capital’s ESG strategy is to achieve the ideals of an environmentally and socially conscious portfolio (ESG) within the risk/return profile of Vision’s Global Dynamic Strategy (GDS) while keeping costs low. The strategy can be deployed using Vision’s proprietary equity and fixed income portfolios or through an all exchange traded fund (ETF) solution.
Our internally managed large cap U.S. equity and U.S. corporate investment grade bond ESG portfolios are modified to exclude the defense, commodity chemicals, fertilizers and agricultural chemicals, metals and mining, and oil & gas industries as defined by GICS. The portfolios are further modified to address any additional environmental and social concerns we identify in our normal course of fundamental research and by utilizing the MSCI ESG screening methodology.
The portfolio uses ETFs that track ESG indexes designed by MSCI for the U.S. small cap, international developed, and emerging market asset classes. The indexes are constructed based on controversy scores calculated by MSCI and by eliminating firms MSCI identifies as being in the weapons or tobacco industries. Exposure to the U.S. mid cap asset class is achieved within the U.S. large and U.S. small cap asset classes.
